http://www.smh.com.au/business/new-credit-card-laws-wont-stop-gouging-by-companies-20100323-quat.html
Summary:
There is a new law design to advance consumer protection that credit card companies cannot charge as many fees and charges on their customers. Many companies, bank and even other financial institutions will be confronted a more harsh situation next year because the “unfair terms” under the new national consumer law of Australia. A survey shows there are only three out of twenty credit card providers didn’t get charge interest on interest, such as Teachers credit union, Heritage building society, and Bendigo Bank. There is an enormous difference between different types of credit card, as one of the twenty card provider mentioned, Westpac interest rate was 18 percent but the teacher card has a standard of 11 percent and does not charge interest on interest.
Connection:
As the banks finding another way to earn more money even thought the new national consumer law is protesting more of the consumer’s right, despite it is unfair, credit card providers have a bad time identify their own interest rate. I think as the process of and variety of new service charges and interest rates are created analyze and calculate it will be more difficult to do and require many new created ledger accounts. Especially, it requires an updated way of the calculation or even new kind of financial that the Australia government will like to browse.
Reflection:
I noticed that interest rates have been raise year after year, in Australia it reaches to a level that poorer people are unable to pay it. After the government stated the new consumer law, it seems advance most of people at the surface, expect any financial institutions or banks, however, I considered it would be a disaster for accountants. They now have to worry about a new kind of financial statement. It may become a battle between the credit card companies and laws. The companies try hard to find as many ways as they can “steal” money from the card provider but the law protests consumer’s right vaguely.
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actually the interest rates is deceasing becauze of the economic depression, however as the economic is getting better, i believe the interest is going to raise again. On the other hand, the companies in Australia could do anythings about the law, even thought they try hard to find another way.
ReplyDeleteThank you for sharing the news. The interest is decreading because of the economic depression but however it will raise agian when the economic is better. But if they have high interest rate in economic depression in Australia the poverty rate will increase at the same time. Its not reasonable to have such high interest rate. If the people cant even afford to pay the interest rate, less people will stop to loan money from the bank, this will lead to another economic depression.
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