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more
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| From
the website of the Australian Securities Industry Commission |
Click
here for the ASIC Web  |
| "© Australian Securities & Investments
Commission. Reproduced with permission." |
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Consumer
Alert ...
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From 1 January 2003 merchants could charge you extra for paying by credit card.
The change is a result of recent reforms introduced by the Reserve Bank. This
Consumer Alert provides tips for dealing with the new credit card fees and
explains the reason for the changes.
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Merchants such as shop keepers, trades people,
utilities and others who accept payment by credit card are not required to
charge a fee for credit card payments. If they do charge a fee, they should make
sure you know that they do and how much it will be before you pay.
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Some tips;
If you are thinking of paying by
credit card, always check whether there will be an extra charge.
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There is no requirement for such a fee to be
charged and it is expected that many merchants will not charge one. However,
where a merchant does charge a fee it will be up to them to determine the amount
of that fee, and different merchants may charge different fees.
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What can you do if a merchant does charge a fee?
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You could always agree to pay any fee.
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You could choose to pay by other means such as cash or EFTPOS.
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If you are paying a bill, you could pay by cheque or use internet or
telephone banking to make the payment from your transaction/savings account.
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Your financial institution
can tell you how to use EFTPOS, internet and telephone banking. The EFT Code of
conduct provides protections for consumers who undertake electronic banking.
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You could take your business elsewhere, if there are appropriate
competitors around who don't charge such fees.
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If you don't have the money at the time but don't want to pay the
fee or shop elsewhere, you could also consider lay-buying the goods in some
instances.
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If all of the merchants you have access to for a particular good or
service charge a fee and you still want to pay by credit card, compare the
fees to see which merchant will charge the least.
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Don't forget recurring debits linked to your credit card, such as
for mobile phones, internet or gym fees. If the merchant that direct debits
your account introduces a credit card fee, you might find it less costly to
have the direct debit linked to your transaction account instead. If you do
this, however, you should be confident that you will always have the money
in your account to cover the cost, as heavy fees can apply if you don't have
the funds in your account. Call Infoline for a copy on 1300 300 630.
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If a merchant does impose a
credit card fee, they should make sure that you are aware that there will be an
extra charge, and how much it will be (expressed in either dollars or as a
percentage), so that you can decide whether to pay by credit card before you
enter into the transaction.
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Merchants may use a variety of means to inform
you if they are charging a credit card fee, including prominent in-store and
point-of-sale signage, and prominent messages on bills and the internet.
Ideally, they may even let you know through their advertisements and promotional
tools. From 1 January 2003 you should be on the look out for such notices. We
have also published advice
to merchants about informing consumers about any credit card fees. This is
also available through our Infoline on 1300 300 630.
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If you are not sure whether a merchant charges a
credit card fee, ask them before you purchase. Also, remember to read bills
carefully to see if there will be an extra fee for paying by credit card.
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If merchants tell you that they are required by
law to charge you a credit card fee, they are misleading you.
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Finally, remember that it is also possible that
a single merchant may apply different policies to different goods or services or
to different credit or charge cards.
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Why has the change happened?
The change which allows merchants to
charge extra for credit card payments is part of a package of reforms introduced
by the Reserve Bank of Australia that aims to promote greater efficiency,
transparency and competition within the credit card network, for the benefit of
all Australians.
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Credit card transactions cost merchants more
than other forms of payment, because of the fee merchants have to pay their bank
for each credit card payment they receive. Rules imposed by credit and charge
card companies currently prevent merchants from recovering the cost of card
acceptance directly from consumers who pay by way of credit card.
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The Reserve Bank's reforms will allow merchants
who accept payment by credit card to choose between incorporating the cost of
credit card transactions in their general pricing, as occurs now, or charging
consumers who pay by credit card a fee to cover those costs from 1 January 2003.
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You can obtain general information regarding the
Reserve Bank's credit card and other payment system reforms at www.rba.gov.au.
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More
Consumer Alerts from ASIC
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- Email frauds
- Investment seminars |
|
| . |
Tips
from FIDO
ASIC's site for investors and consumers |
Click
here for the FIDO Web  |
- Investment - where
do you start?
- Boost Savings/Cut Expenses |
How to join FIDO News
Keep
in touch with the latest information for people with investments,
superannuation, insurance and deposit accounts by getting the free
monthly email newsletter, FIDO
News.
Send an email (with a blank message) to:
join-fido-news@duke.lyris.net |
| FPA Code of Ethics |
Tips
from FIDO
ASIC's site for
investors and consumers
"© Australian Securities & Investments
Commission. Reproduced with permission." |
| posted 29/02/04 |
|
| Investing:
where do you start? |
FIDO's Investing Basics from ASIC |
| Why are you
investing? Before investing you should work out your financial goals
and what sort of risks you are willing to take. |
| Getting
investment advice Make sure your adviser is licensed to give
investment advice. The advice should be related to your own financial
circumstances and needs. |
| Choosing an
investment Choose an investment which suits your short and long term
investment plans. |
| Investing
overseas You may be taking a risk when you invest money overseas
because it can be very difficult to retrieve your money if things go
wrong. Read our warnings and advice about investing overseas |
| Rates of
return We all dream of high returns on our investments. But some
investors' dreams become nightmares after they lend or deposit their
savings in schemes offering unrealistically high rates of return. When
it comes to rates of return you should be remember the saying 'If it
sounds too good to be true, it's probably a lie'. |
| Keeping track
of your investment You should also read all documents you receive
about the investment, ask questions and check all paperwork. |
| Borrowing to
invest Borrowing money to invest is called gearing. Gearing is not
for everyone. It increases profits of your investments because you can
invest more money, but you are also more at risk if the investment
prices fall. |
| Tax and social
security issues You should get advice before investing in a scheme
or product which focuses on tax or social security benefits. Make sure
the stated benefits are in fact real or apply to your circumstances. |
| Scams and
sales practices to avoid You should be wary of pressure selling
techniques, promises of high returns and investment advice from
unlicensed people. If an offer sounds too good to be true, it probably
is. |
| Learning more
about investing Investing can be fun, and there are many
organisations running courses which you may be interested in attending.
They range from lunchtime information sessions through to diploma
courses and there is bound to be a course which suits you. |
| posted 29/02/04 |
|
| How To Cut Expenses and Boost
Savings |
| Reduce Your
Expenses |
| Firstly, group
your expenses into: What you need and What you want |
Needs are
unavoidable living expenses, for example food, clothing, housing,
banking, and transport. Although you have to meet these expenses, you
may still find ways to cut costs.
- Food: Make your lunch at
home. Cut back on take-away. Buying lunch or take-away costs far more
than making your own. Learn to cook. Prepared food is much more
expensive than buying fresh fruit and vegetables. Compare the cost of a
trolley full of fresh food to a trolley full of prepared or processed
food.
- Banking: Some institutions
issue free cheques and will even post out your bill payments for
nothing. Paying bills by internet or phone on your credit card can also
save money.
- Transport: When you buy a car, shop around
for loan and insurance deals. The dealer's finance or insurance deal may
cost more. Consider paying off any insurance monthly if there is no
penalty. It's usually easier to pay a small amount each month than a
large amount once a year. |
Wants may
improve your quality and enjoyment of life, for example eating out,
magazines, movies and holidays. Reducing, or cutting back, on these
things may make very little difference to you and may help your bank
balance.
- Eating out. Costs mount up
quickly. Consider eating out less, even just by one less meal.
- Magazines and movies.
Libraries often let you use the internet for free and lend videos, CDs,
magazines as well as books. Share magazines and books with friends.
- Holidays. Off season is
often cheaper and less crowded. Renting self-catering accommodation,
even if you make only your own breakfast, a few lunches and a couple of
dinners will probably cost less than a motel or hotel where you have to
eat out for every meal. |
| Control Your
Debts |
| Your debts limit
what you can do with your money. Interest payments and fees constantly
drain away your savings. Find out what interest rates you're paying.
Choose to pay off high interest loans as fast as you can. This will
strengthen your financial position. |
- Spare Cash?
Consider paying off credit cards or personal loans
- Credit Cards - If you use them as a loan, you probably pay very
high interest rates that quickly become a financial burden. If you
only repay the minimum each month, you may end up owing an even larger
debt.
- 'Interest free loans'.
They look tempting when you don't have cash to spare, but they can turn
around and bite you after the interest free period expires. You may have
to pay interest back dated to the day you purchased. Check the terms of
"interest free" contracts.
- Mortgages. Consider paying
fortnightly, paying a little extra, or setting up a 'mortgage offset
account' to receive all your income. Aim to be a couple of months ahead
in your minimum repayments in case you fall on tough times. Some
mortgages allow you to draw down or access your advance payments if the
need arises. |
| Manage Large
Bills |
| Do you often find
yourself short when large bills come in? Consider having regular
instalments taken from your account through a direct debit for
insurance, gas, electricity, phone and rates. But make sure you have
money in your account on the due date, or you may incur a large
'dishonour fee' and other charges. |
| Get Expert
Help |
| If you need
more help with budgeting or financial problems, talk to a financial
counselling service. Financial counsellors help you take control of your
situation. |
|
|
Consumer
Alert Archive
"© Australian Securities & Investments
Commission. Reproduced with permission." |
| posted
29/01/04 |
Email
frauds: New safety checks to protect you
From http://www.fido.asic.gov.au/fido/fido.nsf
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|
| Unfortunately the growing number and sophistication of fraudulent emails
affecting internet banking and shopping means taking extra precautions. We
issued an earlier warning about these emails but we've just added two more
safety checks you can make to protect yourself. |
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1. Keep your
computer secure
Some frauds can lure you
into opening an email or attachment that secretly installs a 'trojan' that
allows scammers to monitor your computer and access your accounts. Install
effective protection on your computer, and keep it up to date: |
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Get
an effective virus protection program but take the time to regularly
download the latest version. If you have not upgraded for the past six
months, your protection is probably inadequate.
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Get
a 'firewall' to protect your computer from unauthorised access over the
internet. This is especially important for broadband users.
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Delete
suspicious emails without opening them. Avoid opening dubious attachments,
even if the email seems to comes from someone you trust.
|
2.
Change your PINS
Regularly change your internet banking and shopping PINs. Some banks recommend
changing your PIN as often as every month
|
| posted
29/02/04 |
Investment
seminars - beware
from http://www.fido.asic.gov.au |
|
Scams
and dodgy seminars
You've probably seen ads for investment seminars that claim: |
'You
can become a millionaire in three years'
'Traditional investments are too slow and lack excitement'
'Turn your financial dreams into reality'
'Amazing, fabulous, unbelievable strategies for building massive wealth' |
| In
ASIC's experience most of these seminars push dangerous strategies, such
as borrowing huge sums of money to buy property, unusual investments or
shares. Some are simply scams. |
Mortgage
lending schemes offering sky-high returns
Any offer that promises a high return, will inevitably involve higher
risk. Borrowing to invest adds another dimension to that risk. It's not
the sort of road most investors should be going down, especially if it's
their only major investment. |
Protect
your money from 'get rich quick' pushers
People tell us about the shame and guilt at losing money they had spent
years building up for their dreams or their retirement. |
Offshore
investment seminars
Steer clear of overseas investment seminars. They promise ways to get
rich quickly, often through fake 'bank trading programs'. ASIC and
overseas regulators have warned repeatedly against this fraud. Say
"no thanks" to people who pressure you into buying overseas
shares. You have no protection if you buy from people who run a
securities business or investment advice business but are not licensed
by ASIC. Even overseas people who contact you here in Australia must
have an ASIC licence. |
Beware
of the Vanuatu investment seminar
Operators choose countries like Vanuatu because they hope to escape
strict Australian laws designed for your protection. |
Get
rich quick trading courses: painful lessons
'I did a course recently about trading 'contracts for difference'. [Also
known as spread betting, where you bet on whether market prices will go
up or down.] It seems a lot of people, including myself, have been
grossly misled with the promise that the particular system these guys
trade by can make thousands per night. They didn't mention that you can
potentially lose the same amount and more at the same time.' |
Investing
in real estate
Investing in property is simply another form of investment. Although
real estate agents may understand the property market, you should still
seek the advice of a financial planner, because property investment
might not be for you. |
| Read
more financial tips and safety checks from the ASIC/FIDO
web site:- |
- Psychologically
charged seminars; You aren't in the right state of mind to make
sensible investment decisions in motivational and emotional
atmospheres.
- Defending
yourself against the hard sell
- High rates of
return
- Learning more
about investing
|
| Financial
Planners' Code of Ethics and Rules of Professional Conduct |
| The Financial Planners' Code
of Ethics includes general standards of conduct to be observed by
financial planners. These include integrity, objectivity, competence and
fairness.
The Financial Planners' Rules of
Professional Conduct include rules on:
- disclosure statements to prospective
clients;
- financial plan preparation;
- explanation of financial plan;
- client service;
- complaints; and
- education, competency, and
supervision.
|
| The Code of Ethics and Rules
of Professional Conduct were developed by the Financial Planning
Association. |
| You can download a copy of
the Code and the Rules as a PDF file from the website of the Financial
Planning Association. Or you can
contact the Financial Planning Association (FPA) on 03 9614 2289 or 1800
626 393. |
|