Consumer groups slam Wizard credit card rise
Consumer groups have slammed Wizard Home Loans’ decision to raise interest rates on credit cards a day after the Reserve Bank cut the official cash rate by a 0.25 per cent.
Wizard has increased the interest charges on its Clear Advantage Mastercard by nearly 3 per cent to just under 18.5 per cent.On the weekend, Wizard announced it would cut its variable home loan rates by 0.25 per cent ahead of the official reduction by the RBA.
Nicole Rich from the Consumer Action Law Centre says the rise in credit card rates will hit people who are struggling to pay off their mortgages.
“Wizard, in dropping its home loan rate but raising its credit card rate, is often affecting the same people,” she said.
“The same people who might be struggling with their home loan and attracted to a lower home loan rate are also potentially the people who are using their credit card a bit more because they are struggling with their home loan repayments.
“So they are going to get hit by a credit card interest rate rise.”
Wizard’s chairman Mark Bouris was not available for comment.
yahoo.com.au
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