"As a rule, ASB does not send credit cards to customers without their consent," says a spokeswoman. I expect credit card practices have since been modified by the introduction of the Responsible Lending Code, which took effect for contracts entered into after June 6, 2015. However, we have voluntarily adopted the Responsible Lending Code to help us comply with the Credit Contracts and Consumer Finance Act 2003 (CCCFA). As credit cards are unsecured debt, we look at both a borrower's income and expenses to help satisfy ourselves that a higher credit limit is affordable." Mary Holm is a freelance journalist, a director of the Financial Markets Authority and Financial Services Complaints Ltd (FSCL), a seminar presenter and a bestselling author on personal finance.

Source: New Zealand Herald March 10, 2017 17:03 UTC