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The Star/Asia News Network
Sunday, Mar 11, 2012

PETALING JAYA, Malaysia - Banks will aid cardholders affected by the new credit card guidelines by allowing them to reschedule their debts if necessary, said the Association of Banks Malaysia (ABM).

ABM executive director Chuah Mei Lin said there would be no additional fee or increase in finance charges that was not in the original fee plan.

"Cardholders shall not be charged any over-the-limit fee. There is thus no intention whatsoever to pull the rug out from anyone's feet," she said via an e-mail statement to The Star.

She stressed that the credit card guidelines were based on prudential financial management by cardholders and responsible business practices by card issuers.

Bank Negara Malaysia announced the new guidelines in March last year following concerns that credit cardholders had amassed RM24bil in outstanding balances.

It stated that principal cardholders earning RM36,000 (S$15,012) and lower a year could only have two cards while their credit limit should not exceed twice their monthly income.

Cardholders whose cards were approved prior to April 1 last year have been advised to submit their income documents to card issuers to determine their allowed credit limit and number of cards.

Cardholders should approach their banks as soon as they encountered difficulties in servicing their debts.

"Meanwhile, our member banks will intensify efforts to continually engage closely with their customers by providing advice to ensure their debt commitments are within their repayment capacities," she said.

She assured cardholders and credit card applicants that banks would use holistic measures to appraise them, including assessing their character, capacity and conditions.

Character factors include past records or credit history, stability and duration of employment/business, experience and qualification, as well as reputation.