Credit card interest rates too high

Credit cards have been in the news this week after Finsec called on the banks to explain why interest rates haven’t dropped in response to reductions in the Official Cash rate and in the face of mounting evidence that the recession is causing greater reliance on credit cards to cover weekly expenses.

“Credit card interest rates are over 20% on average. High interest rates create a plastic prison that many customers will take years to escape from,” said  Finsec Campaigns Director Andrew Campbell. We also pointed out that the increase in applications for credit cards might have something to do with sales targets for staff. “It is time for the banks to rethink their interest rate charges and also the sales targets that force bank staff to push credit cards on to customers.”

“Bank branches everywhere have sales and referral targets for credit cards that are making our debt addiction even worse. Employment practices need to reflect a greater social responsibility rather than a never-ending quest for bigger profits.” said Campbell.

Check out some of the media coverage on credit card interest rates here:
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10542951
http://www.radionz.co.nz/__data/assets/audio_item/0008/1781729/mnr-20081113-0639-Interest_rates_on_credit_cards-m048.asx

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