The Federal Government’s new ‘tick and flick’ bank switching service has come into effect, allowing depositors to move their money in deposit accounts with greater ease.

 

The Federal Government announced the changes in a bid to ensure that financial institutions continue to improve their services to their customers.

 

The changes will see customers only need to fill out a single form to move their money to a new institution, with both institutions involved in the transaction having to arrange all transfers of money.

 

The Government’s credit card reform has also come into effect, aiming to ensure that customers don’t pay excessive interest payments for their credit-card accounts.

 

The Federal Government’s changes to credit law will:

  • Force credit card lenders to allocate repayments to clear higher interest debts first;
  • Stop lenders from bombarding consumers with pre-approved, tick'n'flick offers to increase their credit limits;
  • Prevent lenders charging fees to customers who go over their credit limit unless they've expressly asked for this service;
  • Make it mandatory for credit-card application forms to include a clear summary of key account features;
  • Require all lenders to clearly warn consumers on their monthly credit statement of the consequences of only making minimum repayments.