ANZ imposes gambling caps
ANZ is about to break new ground among Australian major banks, with a move to impose restrictions on customers using credit cards to pay for gambling services.The bank has written to cardholders in recent weeks to explain its new policy that is aiming to put a brake on debt-fuelled gambling across its customer base.From 3 December ANZ will automatically reject all payment requests from credit card customers to pay gambling providers when their account balances already exceed 85 per cent of credit limits.The new policy, which will apply to all credit cards issued by the bank, will also be enforced if a cardholder requests a gambling-related payment that would tip their account balance over the 85 per cent cap.An ANZ spokesman said the bank had been consulting with community groups since last year about ways it could help limit the personal and social damage caused by problem gambling."This change is designed to help minimize harm for customers with issues associated with gambling," the spokesman said. "ANZ consulted with various community groups as well as the gambling companies before deciding to implement the new restrictions."ANZ is the first of the major domestic banks to impose special restrictions on gambling by credit cardholders and indicated it could soon introduce additional measures."We are still considering a number of other measures, including self-exclusion and other forms of limitation," the spokesman said.Following evidence given to the Hayne royal commission in March most Australian banks have abandoned the practice of automatically sending offers to increase credit limits when customers overspend on their cards.A CBA customer with a gambling problem told the commission in March that he racked up A$70,000 in credit card debts after the bank issued him with three credit cards in 2014 and 2015.The bank contributed to the customer's financial problems by continuing to send offers to increase his credit limits even after he told a CBA customer service officer that he had an addiction to gambling.Pressure is mounting on major banks to help customers manage their exposure to gambling providers.Earlier this year, Westpac announced a new measure that enabled credit card customers to request a block on all payments to gambling providers.A Westpac spokesperson also revealed that the bank currently assesses the value and frequency of transactions used for gambling purposes when reviewing personal loan applications from existing Westpac customers.Australia's major banks have a long way to go to matching the customer protection measures of credit unions and many foreign-owned banks.Citibank and Credit Union Australia each prohibit spending on gambling services on all credit cards they issue.A Citi Australia spokesperson said the prohibition also applied to customer spending on debit cards issued by the bank.