University professor calls for credit card rate limit

A law professor is demanding that credit card customers get a fairer deal, it has been revealed.

Speaking on the ABC Local Radio show presented by Mark Colvin, Frank Zumbo, professor of law for the University of New South Wales, is calling for the government to be more proactive in clamping down on what he feels to be excessive fees being charged by banks.

Those on the search for a competitive credit card deal may be interested to hear his claims that a cap on unnecessarily high interest rates must be introduced.

Furthermore, he suggests that the level of competition in the financial services market is also in need of analysis.

Mr Zumbo points out: "The banking sector is one of the most concentrated sectors in Australia and consumers are paying the price for that."

His claims follow comments made by prime minister Kevin Rudd, who at a Chamber of Commerce event in Brisbane stated that as the rates of interest attached to credit cards can "vary enormously" consumers should shop around for a competitive credit card deal.

Written by Joe Letts