Australians 'are being ripped off' over credit card interest

Some banks are not treating Australian credit card customers fairly, one industry expert says.

Australians with credit cards are not being treated fairly by some banks, according to one industry expert.

Consumer group Choice found this after conducting research into credit card rules compared with those in the UK, according to the Daily Telegraph.

However, the study found cards from Bendigo Bank, Teachers Credit Union and Heritage Building Society do not charge interest on top of interest and they were the three cheapest – some up to 80 per cent less pricey than most major banks.

Choice's Alan Dooley said a lot of practices that go on within Australian banks are forbidden in the UK and the group found a lot of Aussie credit cards would not be marketable in Britain because they would fail changes being introduced in the country.

This news comes after Westpac wrote to its credit card customers earlier this week to tell consumers they would have to pay interest on their charges from June.

By Mark Hornby