Unsecured Credit Card ApplicationUncovered credit card application
Implementation of new credit card and unsecured credit regulations and improvement of credit granting practice of banks in stages from 1 December 2013.
Improving the credit and exposure practice of banks (the "Fls"); helping people at greater risk of credit crunch to stay out of higher debts. Flls must perform credit office and revenue audits before they increase a borrower's overall credit line (unless these audits were conducted within one calendar months of the credit line increase).
Flls must carry out credit office and revenue controls upon receipt of information that questions the creditworthiness of their borrower (unless these controls were carried out within three month of receipt of the information). Permit Fls, Singaporeans or regulars over 55 years of age who fulfill any of the following credit or debit card criteria:
A minimum of S$ 15,000 per annum; net wealth in excess of S$ 750,000; a Singapore guarantee with a minimum of S$ 30,000 per annum. Consider credit card with a credit limit of 500 S$ or less the advertising, revenue and credit control needs. Expand the application, revenue and credit check requirement to include unsecured credit lines such as commercial, refurbishment, medical and educational credit.
Cls may not raise a borrower's total credit line unless the latter has applied for an extension of a previously subscribed credit line. If a Mortgagor asks a Fl to issuance a new credit card or batch card to him or to raise his total credit line, the Fl must ask the Mortgagor to state his preferential credit line in a sign atory or to obtain the Mortgagor's approval for the amount or raised amount of the credit line in a sign atory.
In the event that a Card Holder has not fully settled the previous month's credit card or debit card bill, a Fl must clearly and unambiguously provide the following information to the Card Holder on his next credit card or debit card bill: This is the amount of money that would accrue by the end of six moths if he did not make any payment within the next six moths and did not impose any further fees on the card.
An Fl shall not allow an amount (other than royalties, interest and charges) to be debited from a credit card or debit card that has been made out to a Card Holder in Singapore once the amount due from a credit card, debit card or unsecured non-card-related credit facilities that has been made out to such Card Holder by the Fl is 60 successive business days or more past due.
No Fl may grant a credit card or debit card or raise the total credit line provided to a Singapore individual or resident who has an amount of money due on a credit card, debit card or unsecured, non-card-based credit line of a creditor that is 60 successive and overdue.
DFS may not allow a Singapore Card holder whose accumulated unsecured balance due and payable in aggregate in excess of his aggregate yearly earnings for three successive monthly periods to be debited from a credit card or debit card (excluding royalties, interest and charges). Updated banking regulations (credit cards and batch cards) 2013 and MAS notices published as a result of this trend are listed below.
The MAS responded on 29 November 2013 to comments in its Draft Amendments to Credit Cards and Unsecured Credit Rules, published in September 2013.