Consumer group Choice want it to be easier for people to cancel their credit cards after reviewing the cancellation policies of Australian banks.
Choice Campaigns Manager Erin Turner said the organisation found a lack of easy options for consumers.
"When it comes to cancellation, the banks make it as hard as possible," she said.
When Chris Moffat wanted to cancel her Citibank credit card, she rang the bank.
She was told the request would be processed, but the cancellation would not be finalised for three months from the date of the last use of the card.
"I just thought that was ridiculous - why couldn't I have had it cancelled on the spot?" she said.
Ms Moffat was told she wouldn't have to pay fees during the period, but if the card was used the three months would reset.
"It seemed like a delaying tactic to me, either in that three months, a payment would come through and so the payments would drag out and drag out, or during that three month period I would change my mind."
Chris Moffat Source: SBS
However Citibank said that, upon cancellation, the customer's account would be blocked.
"Once Citi has established why they want to cancel and if they are uninterested in any other credit card products, we place a block on the account, request any outstanding balance is paid and once balance is zero, the customer is issued a final statement and letter confirming the closure," a spokesperson for the bank said.
"The customer has up to 90 days in which they may request to reopen the account ... after this the account is permanently closed and if the customer wants an account, they would need to re-apply."
SBS contacted the big four banks - NAB, Westpac, ANZ and Commonwealth Bank - who each said customers can cancel their credit over the phone or by visiting a branch. In most cases, this was a means to verify a customer’s identity.
Choice wants the federal government to require banks to offer online credit card cancellation.
Ms Turner said most banking services, like applying for a credit card and having it approved, can be done online, but when it comes to cancelling a credit card it's not so easy.
"If they can verify your identity to spend the money, they can easily do it online to help you cut out the debt," she said.
On March 3, the big four banks will face a parliamentary inquiry, led by the House of Representatives Standing Committee on Economics.
Liberal MP David Coleman is Head of the Committee and said the inquiry will look into the banks' progress in addressing 10 recommendations made in the first round of hearings, last October.
“Several of those recommendations call for new legislation to hold executives accountable, a new one stop shop for consumers who feel they've been treated badly by the bank,” he said.
The government is expected to formally respond shortly to the recommendations.
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