Commonwealth Bank notes the Treasurer’s announcement today on credit card practices. We support the initiatives that make it easier for our customers to manage their financial wellbeing. In line with this, we have introduced a number of changes over the past few months:
- Since December 2016, our customers have been able to reduce their own credit card limits and adjust their spending caps using either NetBank or the CommBank app.
- All of our customers are required to first opt-in to receive credit limit increase invitations and customers are free to opt-out at any time. These invitations are only extended to suitable customers and those who have shown a good repayment history.
- Our customers have saved approximately $7m per year in late payment fees through payment reminders which help them make their payments on time.
- Real-time credit card transaction notifications give customers immediate awareness and insights to help them manage and improve their spending habits.
- Commonwealth Bank was the first bank to give customers the ability to cancel their credit cards online. Announced in March 2017, this initiative is currently being rolled out to customers in NetBank and by the end of July it will also be available in the CommBank app. This provides customers who don’t owe anything on the card, a simple and easy means to close their credit card online without having to contact and speak with a staff member.
Every week, thousands of our customers use these convenient features to better manage their spending. These features aim to help customers meet their financial obligations, ensure they have savings for a rainy day, and achieve their financial goals.
We do not offer zero balance transfers when customers are applying for a new credit card. We believe these offers can suggest that credit is free, which is a misconception that can lead customers to forget about their debt because it is not attracting interest during the initial interest free period.
We provide credit cards responsibly, with rigorous and conservative standards around our lending. This is part of our commitment to helping our customers find better ways to manage and enhance their financial wellbeing.