Australia's big banks are not competing on credit cards, possibly because it would draw attention to the high interest rates they're charging, an inquiry has heard.
Consumer group Choice says credit card providers are charging consumers more than ever at a time when the cost of providing credit is falling, arguing in its submission to a parliamentary inquiry that the large banks are not competing on the basic costs of credit cards.
Treasury's submission says while the credit card market is no less competitive than other lending markets, card providers may be reluctant to compete on their relative interest rate offerings since this would draw attention to the fact that their interest rates are high in an absolute sense.
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