Notice of Change – FAQs

Frequently Asked Questions – Important changes to CUA Credit Cards Conditions of Use and Credit Guide

About the Notice sent to you

This communication is to notify you of the upcoming changes to your CUA Credit Cards Conditions of Use and Credit Guide.

No, the Notice setting out the important changes to CUA Credit Cards Conditions of Use and Credit Guide forms part of, and must be read in conjunction with, your existing CUA Credit Cards Conditions of Use and Credit Guide.

You can access the CUA Credit Cards Conditions of Use and Credit Guide here and we’ll update this from 1 January 2019 to the latest version.

A full copy of the updated CUA Credit Cards Conditions of Use and Credit Guide will be available in branch or can be downloaded from our website at cua.com.au/creditcard_COU from 3 December 2018.

Changes to interest calculations

The way that interest is calculated has changed for purchases.

You may or may not be impacted by this change depending on how you manage your Account. If you always pay your account in full each month, nothing will change. If you never pay your account in full each month, nothing will change.

It will only impact those who sometimes pay their account in full but sometimes only make a partial payment. These members will potentially pay less interest on the Purchases Balance, because the interest will sometimes be charged from the day after the Due Date, rather than from the date the purchase was debited to their account.

From 1 January 2019, if a member pays the full Closing Balance on their last month’s statement by the Due Date set out in that statement, but does not pay their full Closing Balance shown on their current statement by the Due Date in their current statement, the member will be charged interest on their Purchases Balance from the day after the Due Date on their current statement.

Example:

Alex usually pays his full Closing Balance by the Due Date each month on his Credit Card. For his statement period 1st-31st January 2018 he paid his Closing Balance in full by the Due Date 15th February 2018. During the next statement period, 1st-28th February 2018 he only made one purchase on 5th February 2018 for $1000. When the next payment became due on 15th March 2018, Alex couldn’t afford to pay the full Closing Balance, so he made a partial payment of $200 on the Due Date.

Interest for Alex will be calculated on the remaining $800 from the 16th March 2018. If Alex had made additional purchases between 1st-15th March, interest on those purchases would also only be charged from 16th March 2018. Any further purchases he makes after 15th March 2018 will accrue interest from the date those purchases are debited to his Account. Alex will continue paying interest on his outstanding Purchases Balance until he next pays the Closing Balance on his statement in full by the Due Date for that statement or until the opening balance for a new Statement Period is zero or in credit. His purchases will then again be interest free until such time as he again doesn’t pay the Closing Balance by the Due Date.

Prior to the 1 January 2019 change, members who did not pay their full Closing Balance shown on their statement by the Due Date would be charged interest on their Purchases Balance from the date the purchase/s were made.

Using Alex’s example:

Alex would’ve been charged interest from 5th February when he made the $1000 purchase, because on the 15th March 2018 Due Date he did not pay his full Closing Balance, the interest was backdated to the purchase date.

This is the date specified in your statement as the date by which the minimum monthly payment must be made.

This is the total amount outstanding on your Account at the end of that Statement Period.

Changes to Credit Limits and Account Closures

You can lodge a request to decrease your Credit Limit via Online Banking, dropping into your local CUA branch, calling us, or by downloading the form from our website and mailing it back to us.

You can lodge a request to close your Account via Online Banking, dropping into your local CUA branch, calling us, or by downloading the form from our website and mailing it back to us.

Activating the Primary Card within 90 days

The Primary Card on your Account must be active for your Account to remain open. If you fail to activate your Card and 90 days has passed since the date it was issued (including a replacement for a cancelled or expired Primary Card) the Card will be cancelled, as well as the Cards of each Additional Cardholder, and subsequently your Account will be closed.

Once your Account has closed we will not be able to re-issue any new or replacement Cards. This means you also won’t be able to transact on the Account anymore. Fees and Charges will continue to be charged until your Account is paid in full. The Agreement will continue after your Card/s are cancelled and Account closed until the whole of the unpaid balance of your Account is paid and any amounts subsequently debited to your Account are paid (whether the amounts are accrued or charged before or after the cancellation or closure). You can refer to section 3.11 Cancellation of Cards and closure of Account for more detail.

Changes to what you can use the Account for

We have just made it clearer that gambling purchases are not accepted.

Changes to Multi Currency Transactions

Previously, only USD was converted straight to AUD and all other foreign currencies would be converted to USD before being converted to AUD. However, now there’s more than just USD currency which will convert straight to AUD.

All Purchases, Cash Advances, refunds, reversals, and any other charges that are in a foreign currency are converted at the date of processing by Mastercard, using a government mandated exchange rate or wholesale exchange rate obtained by Mastercard from a range of international currency providers.

CAD, JPY, NZD, SGD, GBP and EUR – this may change from time to time.

Changes to blocked transactions

We have just made it clearer that breaches of the Agreement are also grounds for us to block your transactions and/or Account.

The CUA Credit Cards Conditions of Use and Credit Guide, along with the Offer and Credit Card Contract we supply you when you’re approved, make up your Agreement with CUA.

The “Pays”

Apple Pay and Google Pay are the “Pays” and they’re mobile payment apps. They allow cardholders to register eligible cards in an app, and then use their phone to make purchases at any merchant that accepts contactless payments. There are other eligible devices as well, such as but not limited to: Apple Watch, iPad.

Head to cua.com.au, on our homepage you’ll find the “Pay with your phone” option under Quick view links on the right hand side.

Changes to External Dispute Resolution Scheme

FOS was CUA’s external dispute resolution scheme with whom a member could lodge a complaint if an issue had not been resolved by CUA to the member’s satisfaction. From 1 November 2018, it was replaced by the Australian Financial Complaints Authority or AFCA.

AFCA is a single financial services external dispute resolution scheme, replacing FOS, the Credit and Investments Ombudsman and the Superannuation Complaints Tribunal. From 1 November 2018, if an issue has not been resolved to your satisfaction, you can lodge a complaint with AFCA. The AFCA provides fair and independent financial services complaint resolution that is free to consumers.