Finance commentator David Koch is wading into the Senate inquiry into credit cards. He has been asked to address the inquiry and is expected to add to the calls for providers to be reigned in.

Koch said ahead of his address that providers should have their ‘predatory tactics’ stopped. It should be the decision of the customer, not the provider, to seek borrowing increases.

“There should be no unsolicited credit cards or credit card limit increases … by stopping this a customer makes a decision,” said Mr Koch.

“They (the customers) are at least thinking about how they pay it off or the purpose of the card and that will be an enormous step forward.”

At the moment credit card providers are able to tempt would-be borrowers with new cards or limit raises if they have opted to receive ‘marketing materials’.

Many who receive such offers clearly shouldn’t.

According to RBA figures Australians now owe $51.46 billion on credit cards; $33.1 billion of that is accruing interest.

The average interest on no-limit credit cards (according to comparison site Canstar) is a whopping 18 per cent.

Deputy inquiry chairman Sam Dastyari, said to News Corp Australia that a ban on unsolicited offers for credit increases should be a ‘no-brainer’.

“You should only be getting an increase when you request one.The culture of banks constantly flogging products tht aren’t requested should end.

“I can’t see how allowing them is in the interest of consumers. The anecdotal evidence I have been given is that these increases always turn up around the holiday season and other financial pinch points.”

Everyone is eagerly awaiting the response from the banks, who will appear before the inquiry later this month.

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