Australians Fed Up With Credit Card Fees, Consumer Expert Says

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PR NewsChannel) / July 01, 2008 / Brisbane, QLD, Australia - By interrogating data collected by Datamonitor's Australian Financial Services report released this month, it is clear to see that average Australians are unhappy with their credit card annual fees. The survey was conducted December, 2007 based on 2,000 adult credit card consumers.

One of the specific questions asked by the Datamonitor survey asked consumers to rate their contentment with their credit card provider, by indicating their agreement with the statement "I feel that the rewards that I get from my card make up for the annual fee that I pay." 

Survey results indicated quite clearly that many consumers were significantly concerned about the actual benefit many of the reward schemes offered to credit card users. A common theme among the test group was the feeling that they were being ripped off by the high annual service charges.

Richard Greenwood, who is the director of the popular credit card comparison Web site http://www.click4credit.com.au, says the results do not surprise him.

"Australian consumers have traditionally paid some of the highest banking fees in the Western world and credit cards are no exception," he says.  "In countries such as the UK, annual fees on credit cards are almost unheard of, in Australia they are the norm. We've conducted our own poll of 500 Australians this month and only 10% feel it is fair to pay an annual credit card fee."

The report did reveal that it is not all doom and gloom for credit card consumers, by highlighting the fact that competition is increasing which encourages more consumer focused products such as ones offering low interest credit cards, many of which are provided by lending establishments outside of the big four (ANZ, Westpac, NAB, and Commonwealth). Many of these new offerings have been extremely competitive and represent great value for consumers, says Greenwood.

Greenwood is quick to add that "there are plenty of good credit card deals on the market but customers need to shop around and compare credit cards to find a card suiting their needs. Don't just accept what your bank offers without checking the market first."

Although this may seem like simple advice, he says it is surprising how many people fail to examine options fully before accruing a credit card debt on a less than ideal card.

Surely the result of the Datamonitor survey combined with the obvious dissatisfaction that consumers feel with the way annual card fees are charged in Australia, will force the main credit providers to review their charges, he says.

Greenwood says current industry trends would seem to indicate that new, fresh and focused products are gaining popularity, regardless of the fact they are being offered by less well known financial institutions. If these trends continue, he says, consumers could well see the big four being driven down the financial ladder by more dynamic companies who have taken the time to upgrade their credit card offerings to be more in line with global credit services.

By significantly reducing, or in some cases removing entirely the annual fee associated with owning and using a credit card, they are proving that they are dynamic enough to react to consumer concerns and adapt their credit products in a way that is attractive to the current market, Greenwood says.

"One can only speculate as to the reaction these new products will prompt from the major credit providers, but surely they must follow suit or risk losing a considerable market share. Of course, once the main lenders begin to follow suit, consumers should be in a position to r  eap the benefits more fully," says Greenwood.

About Click4Credit.com.au:
www.click4credit.com.auis a leading credit card comparison website, specialising specifically in the Australian credit card market. The company is a subsidiary of Click 4 Group Pty Ltd, an operator of several websites aimed at providing the Australian public with comparisons of a wide range of financial products. The company is based in Brisbane, Queensland.

For more information or interviews, please contact:
Richard Greenwood
Director - The Click 4 Group (www.click4credit.com.au)
Tel: 07 31239170
The Click 4 Group Pty Ltd
Level 18 / 123 Eagle Street
Riverside Centre
Brisbane, QLD, 4000
Australia
Phone: +61 7 31239170
Email:
Web site: http://www.click4credit.com.au

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SOURCE: click4credit.com.au

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