Westpac insurance sales misleading: ASIC

Original article by Jonathan Shapiro
The Australian Financial Review – Page: 18 : 9-Apr-21

The Australian Securities & Investments Commission is taking legal action against Westpac in the Federal Court. ASIC claims that Westpac mis-sold credit card insurance to customers who did not want it, with more than 380 customers affected in a four-month period between April and July 2015. Westpac has stated that it will work with ASIC constructively through the court process, and that it has not sold credit card insurance since 2019. Credit card insurance came under scrutiny during the Hayne royal commission, and the big banks have stopped selling the product.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA

Spending holds up despite outbreaks

Original article by Patrick Commins
The Australian – Page: 4 : 7-Jan-21

Spending by ANZ cardholders increased by 6 per cent in December over November, with spending by Victorian cardholders up nearly five per cent and spending in New South Wales up two per cent. Spending by South Australian cardholders rose by 16 per cent, while Queensland spending was up 10 per cent. Spending on entertainment was up almost 25 per cent, while spending on accommodation was up 20 per cent.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Kogan launches Visa card and $300 credit offer

Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 3-Oct-19

Online retailer Kogan.com has partnered with Citigroup to launch a Visa-branded credit card. The Kogan Money card has no annual fee and a 55-day interest-free period, while cardholders will receive free membership of the Kogan First customer loyalty scheme. Kogan announced the alliance with Citigroup in November 2018, and flagged plans to launch a credit card during 2019. Kogan has previously diversified into products such as superannuation, home loans and mobile phones.

CORPORATES
KOGAN.COM LIMITED – ASX KGN, CITIGROUP PTY LTD, VISA INTERNATIONAL, UBS HOLDINGS PTY LTD

Banks should explain credit card fine print

Original article by Tom McIlroy
The Australian Financial Review – Page: 3 : 20-Aug-19

Research involving almost 400,000 Commonwealth Bank of Australia credit card users suggests that there are benefits to be had by being more transparent with customers. Harvard researchers found that CBA customers who were provided with more transparency about their credit cards spent 9.9 per cent more each month, and were much less likely to cancel their accounts. In announcing the results of their study, authors Ryan W. Buell and MoonSoo Choi called for more research into transparency and customer engagement.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, HARVARD UNIVERSITY

Qantas goes after slice of frequent buyers’ credit card spending

Original article by Patrick Hatch
The Sydney Morning Herald – Page: Online : 13-Feb-19

Qantas has launched a new Titanium credit card that will be offered solely to customers whose annual income exceeds $200,000. Qantas Loyalty CEO Olivia Worth notes that the airline’s top 1000 loyalty scheme members generate most of their frequent flyer points from expenditure on goods and services rather than flights. Qantas’s customer loyalty partners include Woolworths, AustralianSuper and Red Energy.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, QANTAS FREQUENT FLYER LIMITED, WOOLWORTHS LIQUOR, AUSTRALIANSUPER PTY LTD, RED ENERGY PTY LTD

Credit card debt to take 138 years to pay

Original article by James Frost
The Australian Financial Review – Page: 9 : 23-Mar-18

Commonwealth Bank executive Clive van Horen has conceded that the bank erred in the case of problem gambler David Harris. Harris has told a public hearing of the banking royal commission how the bank had continued to give him credit cards and had extended his credit limit even though he had admitted to being a problem gambler. Van Horen told the commission that the bank has since tightened its rules in relation to giving credit to customers who appear to have gambling problems.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Credit mischief costs banks $50m

Original article by Joanna Mather
The Australian Financial Review – Page: 4 : 15-Feb-18

The financial services royal commission will initially focus on banks’ responsible lending practices in relation to credit cards, home loans and car finance packages. Meanwhile, new figures show that the Australian Securities & Investments Commission has ordered banks to pay $A50m in refunds and compensation to credit card customers over the last two years. Westpac, ANZ and Citi are among the banks that have been forced to reimburse customers during this period.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, CITIBANK PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA

King cash dethroned as cards lead a revolution at the till

Original article by Richard Gluyas
The Australian – Page: 23 : 15-Sep-17

The ­Reserve Bank of Australia’s latest triennial customer payments survey highlights the continuing decline in the use of cash as a payment option, in favour of debit and credit cards. The proportion of consumer transactions that were carried out with cash has fallen from 70 per cent in 2007 to just 37 per cent in fiscal 2016. However, cash remains the most popular payment option for transactions costing less than $A10, while cash is still widely used by older people. There was also a 20 per cent decline in payments via cheque in 2016-17.

CORPORATES
RESERVE BANK OF AUSTRALIA

Visa moves to kill PINs with biometrics

Original article by Yolanda Redrup
The Australian Financial Review – Page: 19 : 29-Aug-17

Visa hopes it will not be too long before its card users will be able to do away with using PIN number or 16-digit card numbers to conduct transactions. Visa is looking to work with Australian banks to adopt biometric authentication protocols that will allow card users to make transactions by using their fingerprint, with the process aimed at both reducing fraud and cutting down transaction times. Visa’s Joe Cunningham would also like to see greater data sharing between banks and merchants.

CORPORATES
VISA INTERNATIONAL, AUSTRALIAN PAYMENTS CLEARING ASSOCIATION LIMITED

Woolies customers fume after being charged twice

Original article by Sue Mitchell
The Australian Financial Review – Page: 18 : 8-Aug-17

Payments processor Cuscal has accepted responsibility for an error which saw customers of Woolworths billed twice for the same purchase. The problem affected purchases made at various Woolworths units, including BWS, Big W and its petrol stations. Affected customers had paid for transactions as long ago as March 2017 with their Visa cards, and were billed for the same transactions again in early August. Many irate customers were quick to vent their anger at Woolworths.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, CUSCAL AUSTRALIA PTY LTD, BWS – BEER WINE SPIRITS, BIG W DISCOUNT STORES