Despite the comments made at the Royal commission, it’s clear that many financial institutions are still not doing the right thing by their customers. Just this week my daughter got an invitation from Citibank who issue Virgin credit cards to take up an offer to repay the debt on the credit card at 8.9% per annum in fixed monthly instalments. As an inducement they were offering the cardholder could receive “a cheque for $500 up to your available credit limit “if they accepted the fixed payment plan.
I am sure many people would think that $500 was a gift but of course it was an extension of credit at 8.9%. Fortunately my daughter pays her credit card in full each month so it did not apply to her.