Low rate credit card

The issuer of this product is Illawarra Credit Union Limited ABN 14 087 650 771 AFSL/Australian credit licence 245576
Date of creation: 5/10/2021

Description of Target Market

Retail clients who are:

  • seeking a non-cash payment facility, to make purchases on credit and to manage their cash flow needs
  • aged 18 years or more and meet the credit assessment criteria for the product
  • an Australian citizen or Australian permanent resident
  • seeking a lower rate of interest so that they have the options to spread repayments over more than one statement cycle
  • not seeking to earn reward points which they can then redeem
  • not seeking other features such as insurance or concierge services provided by a rewards card.

Description of Product

This is a Low Rate Credit Card.  The key attributes are:

  • credit limits between $500 and $25,000
  • variable rate of interest, 8.99% on purchases, 15.88% on cash advance
  • $50 annual fee, waived for the first year
  • interest free period on purchases for 45 days
  • no security required
  • minimum repayment of whichever is greater of 3% of closing balance or $20
  • internet banking
  • banking app
  • telephone banking
  • monthly e-statements

Distribution Conditions

This product is distributed by the issuer through the following channels:

  • Branches
  • Call Centre
  • Online
  • Mobile lenders
  • Brokers

Distribution conditions for this product include:

  • Ensuring that retail clients meet the eligibility requirements
  • Ensuring that distribution through branches, call centres, and mobile lenders are by appropriately trained staff
  • Ensuring that distribution is through accredited brokers which are approved by Illawarra Credit Union
  • There are no other distributors of this product

Review Triggers

The review triggers that would reasonably suggest that the TMD is no longer appropriate include:
  • A significant dealing of the product to consumers outside the target market occurs,
  • A significant number of complaints are received from customers in relation to their use of the product that reasonably suggests that the TMD is no longer appropriate,
  • A material change to the product or the terms and conditions of the product occurs which would cause the TMD to no longer be appropriate.
The Product Governance Framework which includes the Product Policy and related policies includes regular consideration of whether there has been a review trigger following each distribution information report.  That consideration is by reference to paragraphs 154 to 156 of RG 274 Product Design and Distribution Obligations published by ASIC.

Review periods: First Review Date: 05/04/2022 Second Review Date: Every two years after the initial and each subsequent review.

Distribution reporting requirements

The following information must be provided to Illawarra Credit Union by distributors who engage in retail product distribution conduct in relation to this product: *
*Type of Information Description Reporting Period
Complaints Number of complaints Every 6 months
Significant Dealing(s) Date or date range of the significant dealing(s) and description of the significant dealing (eg, why it is not consistent with the TMD) As soon as practicable and in any case within 10 business days after becoming aware
Customers outside the target market The number of customers who have an account but are not within the target market Every 6 months

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