Victorian Treasurer Tim Pallas has called on the federal government to tie credit card interest rates to the official cash rate, calling current limits “unconscionable,” ABC News reports.
Mr Pallas has written to federal Treasurer Josh Frydenberg and the heads of Australia’s major banks, asking them to review credit card interest rates.
He said banks had benefited from excessive interest rates while consumers struggled off the back of tough economic times.
The current cash rate is 0.1 per cent, and Mr Pallas took aim at “interest rates on credit cards upwards of 20 per cent”.
“This is unreasonable, it’s unfair, it’s unconscionable and the banks really do need to amend their behaviour,” he said.
The Victorian push follows comments made by Reserve Bank Governor Philip Lowe in February, where he expressed “frustration” about the high interest rates on some credit cards.
The Treasurer said he shared Dr Lowe’s frustrations.
“We believe that consumers should not be exposed to an unreasonable or an unfair burden as a result of excessive rates,” Mr Pallas said.
Current rules in place cap the maximum interest rate at 48 per cent.
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Victorian Treasurer calls on federal government to slash credit card interest rates (ABC News)
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