Slick and aggressive marketing of credit cards and inducing innocent people to go on a shopping binge on goods that they don’t need or can’t afford has driven a large number of New Zealanders to go bust. The number of New Zealanders filing applications for bankruptcy has hit the highest point ever since records have been maintained. A new law is in the offing which is going to give relief to those people who have huge credit card debts but no assets to pay. And herein lies a lesson to all of us in
The lessons to be learnt and considered are multifarious. Is it time for a central databank of credit card holders to be maintained by a statutory authority? Should the bankers be allowed any special recovery procedures in respect of such unsecured credit card loans? Is it not the responsibility of the bankers to conduct proper due diligence before issuing a credit card? Should not the bank have fixed credit limits keeping in view the repaying capacity of the card holder? And most importantly, what should the liability be of the credit card holder who despite knowing his personal limitations went ahead and lived beyond his means on some else’s money? Does such a credit card debtor deserve any sympathy.
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