ASIC has announced that Westpac has withdrawn unsolicited credit card limit increase invitations in response to ASIC’s concerns they were misleading.

Between February 2012 and March 2012 via email, credit card statements and its website, Westpac notified customers about changes to the law regarding credit limit increase invitations and requested that customers provide their consent to continue to receive credit limit increase invitations. Approximately 3700 customers provided their consent as a result of these messages.

ASIC formed the view that the messages were misleading as they:

• suggested that if they did not consent, customers could miss out on accessing additional funds, and
• created the impression that customers needed to act urgently, which may have led customers to respond without properly considering their options.

Westpac also obtained some customer consents through messages that ASIC did not consider to be misleading and these consents remain unaffected.

ASIC’s action against Westpac follows the Commonwealth Bank entering into a enforceable undertaking earlier this year following ASIC concerns over a message sent to its internet banking customers.

The new credit card rules commence on 1 July 2012.