Page 2889 - Week 11 - Thursday, 22 October 1992
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If a person is a corporation and takes action that enables another person who has a credit card to use that credit card - and that action could be by advertising products or services over a phone or via a computer - and the person uses their credit card, except in accordance with a request in writing, that then is an offence.
I will welcome the Attorney-General's explanation. He will probably refer to the explanatory memorandum. Under the heading "Clause 28: Unsolicited credit and debit cards" it says:
It is unlawful for anyone to send unsolicited debit and/or credit cards to anyone.
That clearly explains what an offence is. However, the clause within the Bill does not. The fact that there is a heading within the Bill that mentions unsolicited credit and debit cards gives no weight of law to the statement that I am trying to get deleted. That statement is that a person - and that could mean a corporation - cannot do anything that encourages another person to use their credit card, unless there is an authorisation in writing. I look forward to the Minister's explanation.
MR CONNOLLY (Attorney-General, Minister for Housing and Community Services and Minister for Urban Services) (11.41): Madam Speaker, Mr Stevenson has misread the effect of subclause (3). It does not say that a person cannot use another person's card without permission. It says:
A person shall not take any action that enables another person who has a credit card or a debit card to use the card as a debit card or a credit card ...
It ensures that the issuer of a card cannot take any action to convert a credit card into a debit card, or vice versa. Members may be aware that the fantastic plastic can do a range of things. An example of a credit card is Bankcard.
Mr Moore: It should never have fees on it.
MR CONNOLLY: That is another debate. A credit card is a card which allows you to run up credit and have an ongoing account. A debit card is one where there is an instantaneous debt run against you. They are different forms of credit. They have different pricing arrangements and they have different regulatory regimes under both the uniform State credit Acts and Commonwealth regulatory schemes.
This subclause says that an issuing institution cannot change the nature of the card without the permission of the card holder. In effect, it protects consumers who purchase one financial product by ensuring that the financial product they purchase remains as they purchased it and cannot be changed. If it simply said, "A person shall not take any action that enables another person who has a credit card to use the credit card", Mr Stevenson's objection would be valid. But it says:
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