Westpac credit cards charge interest on interest

Westpac has written to hundreds of thousands of credit card holders to tell them that from June “interest will also apply to interest charges and fees on your credit-card account”. The move applies to all Westpac cards. A spokeswoman said that a customer with an average balance – about $3600 – would only pay an extra 67c a month in interest.

Such a customer already paid about $72 a month in interest. Westpac’s spokeswoman said: “We are only bringing our approach into line with industry practice. It’s not a huge difference and it’s no different to how any of the other banks do it.”

Source: The Daily Telegraph