ANZ Bank cracks the 20 percent interest barrier

ANZ Bank cracks the 20 percent interest barrier

Debit balances on mainstream ANZ credit cards will now cost customers over 20 percent in interest. This is the latest finding to come from Consumers’ Institute’s credit card monitoring unit.

Chief executive David Russell said it was a scandal that the bank was charging such a high rate.

“The governor of the Reserve Bank has been doing all he can to put a brake on consumer spending, but this should not be a signal to banks that they can get away with charging unreasonable interest on outstanding credit card balances”.

“Banks have been quick to offer customers increased lending limits in recent months, and the ANZ is now leading the pack in imposing interest of more than 20 percent on the money it has encouraged people to spend”, said Russell.

Other banks are not far behind, with rates just below 20 percent, but according to the Institute a psychological barrier has been broken.

The Institute’s advice to people hit with unreasonable interest charges is to talk with their bank about cheaper deals that may be available. If they make no progress, they should consider switching to a bank that does offer a better deal.

“Our interactive credit card selector at www.consumer.org.nz shows you can pay as little as 10.95 percent interest on credit card debit, provided you are with the right bank”, said Russell.

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