“It’s a little bit like a mini-bank.
They don’t charge you anything for it.
You just swipe it.”
― Michael Jordan, former NBA star, actor and motivational speaker.
Source ABC News (AU) title The banknotes are in your hand: How the banks make money from people’s personal accounts.
article As part of its efforts to tackle the growing problem of payday loans, Australia’s banks are being forced to take on more debt, with new laws designed to tackle what is being called the “looseNote Counter”.
According to the Financial Markets Authority (FMA), the banks have been asked to offer a 30% discount on all banknotes after the first three months of 2018.
The move comes after several high-profile cases of customers getting ripped off by banks.
One such case involved a man who paid $2,500 for a one-off bill that was subsequently returned as a “loan”, with the total amount owed still being $2.4 million.
In April, another Australian man, named only as A, was charged with fraud after he paid $7,000 for a single note that had no interest.
Despite these cases, the FMA says banks are still allowed to take a 5% interest rate for a month, and have been encouraged to do so for longer periods.
“Banks have been told that a 5 per cent interest rate is just too low for customers to accept,” FMA president Dr Peter Linnell said in a statement.
As part of this crackdown, the banks will be forced to offer customers a 30 per cent discount on any bill that has an “Interest-bearing balance” over $500.
This is meant to help people with lower-interest bills pay off their debts quicker, as well as give the banks time to sell off their debt to help them meet their mortgage repayments.
At the time of writing, the maximum interest rate available on the new scheme is 6.5 per cent, and there is no limit on the number of notes that can be placed in the system.
Although banks have not been charged with any offences for offering these discounts, they are required to inform customers of this by publishing a notice on their website, or by posting the details of any loans on their social media accounts.
What you need to know about the ‘loosening’ of credit terms The ‘looseness’ of the system has also been criticised by consumer groups.
Australia’s Financial Conduct Authority (FCA) says that a 30-day interest-free period will allow banks to offer “fair prices”, but critics argue that this should be a minimum term for all new loans, and not just the ones made on a monthly basis.
If the interest rate rises to 6.0 per cent a month or more, the banking regulator will require the banks to extend the time to three months.
A spokesperson for the FCA said the bank was reviewing its loan terms, and was considering further guidance.
How you can help The Financial Services Alliance has warned that banks have a responsibility to protect the rights of consumers, and the new rules will likely impact those who have a credit history.
They have called for the government to introduce a “freeze date” on the interest-only terms for all credit cards.
But the FSA said this was “not a freeze date”.
“We recognise the importance of protecting consumer rights in the interest of the economy,” the FTA spokesperson said.
There is also the issue of how to manage the increasing number of borrowers, and how to handle the sudden increase in payday loans.
For example, if a bank offers a 20% discount, but a borrower defaults on the loan, they could end up owing tens of thousands of dollars.
And if a customer has a bank-issued debit card, they may not be able to access their money at all.
With more people borrowing, banks will also need to find a way to keep pace with the demand for their services.
However, there are also concerns about the ability of the banks’ payment processing systems to keep up.
Fraudsters will continue to use the ‘loser’ credit card for fraudulent activities, which can affect the integrity of the payments system.
This could include the use of a credit card that is in the wrong card-number range or is missing payment details, and fraudulent charges that can come in the form of late payments, overdrafts and other fraud.
What you should know about ‘losing your home’ and ‘filing for bankruptcy’A new study from the Australian Bureau of Statistics (ABS) suggests that one in five Australians are struggling with the loss of their home or business, and another one in three are in debt.
While this number has been on the