with substantial hardship, unless the contrary is proved. Reform 2: prohibit unsolicited credit limit offers in relation to credit card contracts Credit card providers must not make Credit card providers must not make credit limit increase invitations. There credit increase invitations, except is no exception to this. where they have obtained the express consent of the consumer to do so. A credit limit increase invitation is made where a licensee gives any A credit limit increase invitation is unsolicited form of communication to made where a licensee gives a written a consumer about increasing the communication to a consumer about credit limit of the credit card contract. increasing the credit limit of the credit card contract. Existing and criminal penalties will apply, along with existing infringement notice powers. Reform 3: simplify the calculation of interest charges under credit card contracts Credit card providers are prohibited The maximum amount of interest from imposing interest charges charge that can be imposed under a retrospectively to a credit card credit contract is prescribed. balance, or part of a balance, that has had the benefit of an interest free period. Failure to comply with the requirements relating to application of interest charges credit card contracts attracts civil and criminal penalties and infringement notices. Reform 4: reducing credit limits and terminating credit card contracts, including by online All credit card contracts must allow No equivalent. consumers to request to reduce the limit of their credit card or terminate a credit card contract. Additional requirements are imposed on a credit card provider where a consumer is entitled, under their credit card contract, to reduce their credit limit or terminate their credit card contract. These requirements are: the credit card provider must provide an online means for the consumer to make a request to reduce their credit card limit or terminate their credit card contract; following a request, the credit card provider must not make a
with substantial hardship, unless the contrary is proved. Reform 2: prohibit unsolicited credit limit offers in relation to credit card contracts Credit card providers must not make credit limit increase invitations. There is no exception to this. A credit limit increase invitation is made where a licensee gives any unsolicited form of communication to a consumer about increasing the credit limit of the credit card contract. Existing and criminal penalties will apply, along with existing infringement notice powers. Credit card providers must not make credit increase invitations, except where they have obtained the express consent of the consumer to do so. A credit limit increase invitation is made where a licensee gives a written communication to a consumer about increasing the credit limit of the credit card contract. Reform 3: simplify the calculation of interest charges under credit card contracts Credit card providers are prohibited from imposing interest charges retrospectively to a credit card balance, or part of a balance, that has had the benefit of an interest free period. Failure to comply with the requirements relating to application of interest charges credit card contracts attracts civil and criminal penalties and infringement notices. The maximum amount of interest charge that can be imposed under a credit contract is prescribed. Reform 4: reducing credit limits and terminating credit card contracts, including by online All credit card contracts must allow consumers to request to reduce the limit of their credit card or terminate a credit card contract. Additional requirements are imposed on a credit card provider where a consumer is entitled, under their credit card contract, to reduce their credit limit or terminate their credit card contract. These requirements are: the credit card provider must provide an online means for the consumer to make a request to reduce their credit card limit or terminate their credit card contract; following a request, the credit card provider must not make a No equivalent.