Credit card anger in far north Queensland

The company has issued some residents of Hopevale community, 300km north of Cairns of Cape York, with cards.

But many of them are on world-for-dole programmes, Hopevale mayor Greg McLean says.

He said the people being given cards had limited ability to repay or understand fully the implications of running up thousands of dollars in credit purchases.

"It was always my understanding that credit cards would only be given to people with jobs and assets, yet the people I know on Hopevale with cards have no assets or permanent employment," he told The Australian newspaper.

The proprietor of Endeavour Falls roadhouse in Hopevale, Jan Grassmeder, who supplies general groceries and fuel, said she had rung American Express in disgust and would not accept their credit cards any longer because of her concern for Aboriginal cardholders.

"There have been four or five coming in here buying on credit, and they are wonderful people who I know, but the risk is unnecessary."

"I just think it is a recipe for disaster and will only get these people into trouble."

A spokeswoman for American Express told the newspaper proper credit and work checks were always made. People earning a minimum $A16,000 ($NZ17,400) were eligible to get a credit card.

"At Hopevale, fewer than 10 have been issued and the credit limits are $A1500 to $A2000. We have done the credit checks which they have passed."