If the service tax is really imposed on 1-1-10 and not according to the card issue date, I would say it is better to do the cancellation 2-3 weeks before 31-12-09. As you are aware, some banks such as MBB and HLB are extremely "efficient" in dealing with CS issue. Imagine, if everyone is cancelling the cards last minute, how could those banks handle such high volume of demand? You definitely don't wish to hear something like this, "we did not receive your call requesting for card cancellation" or "we did not receive your letter of notification of card cancellation". If you terminate your card early, at leaset you still have ample time to double check with the bank on the status of card cancellation.

The service tax is imposed by the government and is not charged by HSBC. Nevertheless, looking at HSBC Primier huge customer base and high net worth profile, HSBC should reimburse the RM50 to its Premier customers in form of rebate.

BREAKING NEWS!

http://www.theedgemalaysia.com/political-n...s-rm50-tax.html

Banks can absorb credit card’s RM50 tax

Written by Sharon Tan
Friday, 13 November 2009 00:22

KUALA LUMPUR: Banks can absorb the service tax for credit cards if they want to, said Deputy Finance Minister Datuk Chor Chee Heung.

The government could not force the banking institutions to absorb the service tax of RM50 for each principal card and RM25 for each supplementary card, he told the Dewan Rakyat yesterday.

In his reply during the Budget 2010 debate, he said: “The reason for the charges was to help the people spend wisely and curb over-spending. Hence the government cannot cancel the service tax as suggested.”

Anthony Loke (Rasah-DAP) had asked why the banks could not be made to absorb the service tax, while Chua Tee Yong (Labis-BN) argued that many banks had registered big profits and the government should not prevent them from absorbing the tax if that were their wish.

“If the company wants to pay, the government cannot do anything, but this will defeat the government’s purpose. When we use credit cards, we are using money. It’s a loan. And when we could not pay back, the NPL (non-performing loan) rises,” said Chor.

“Surely as MPs, we don’t want to see the NPL rising and a big percentage of the card owners becoming bankrupt,” he said, adding that there were 11 million credit cards in the country.

Chor said the government stand to collect about RM450 million annually from the credit card service tax.

Banks have to give us confirmation soonest possible. If I don't receive final confirmation by 2nd week of Dec'09, I will still cancel 2 out of my 5 existing CCs.

The move is a kind of boycott. Anyway, I don't own any CCs and accounts with CIMB.

I don't think all banks will reimburse the service tax. Even if some banks are willing to absorb the cost, it is time for cardholders to seriously consolidate their CCs.

If card cancellation (instead of card loss) was requested, NO penalty or replacement fee will be charged.


I didn't subscribe Maxis IPO as it was over-valued. Most people hold CIMB/DA CCs because of free for life without any conditions attached. It is interesting to see how CIMB/DA would overcome the risk of losing market share if they are not going to absorb the service tax.

If that's the case, it is forseeable that more and more card cancellation requests will be made when approaching 1-1-10. Therefore, it would be wiser to cancel the CCs within the 1st or 2nd week of Dec'09. Some banks definitely cannot handle large volume of last-minute card termination requests.


No surprise. Almost all cardholders have more than 1 card. If banks don't absorb the service tax, almost all of them will cancel at least 1 card. Some fanatic CC collectors may also reduce the number of CCs from 10 to just 2 or 3. The impact is gonna be BIG during the 1st year of implementation of service tax.

You should understand the T&Cs thoroughly before subscribing the installment plan. Similiar situation and many other problems also happen to easy payment scheme, balance transfer and personal loan. If you do not have enough money to pay, then do not make the purchase in the first place. I have never trusted those schemes!

If you CAN tell me an investment giving a guaranteed return which is higher than the interest charged by banks, I would be the first person to invest. However, there is no such investment in reality and no such thing as free lunch.


Yes, its rebate rate is higher than SCB Business Plat cc. However, 1% rebate is not good enough as compared to SCB JustOne, Amex Gold cc as well as Alliance Plat and Younique. Besides, you will not be getting any reward points from this card.

Anyway, this card is still better than HLB Visa Essential which only gives rebate for purchases based on denomination of RM100.


Unfortunately, it will still be treated as advance payment or prepayment. Most of the banks will impose heavy prepayment penalty on your installment plan.

This post has been edited by winner: Nov 15 2009, 11:26 AM

I had switched the money in my current accounts of HLB and Alliance to SCB JustOne account a few months ago, due to the higher interest rate and reward points. As compared to Ambank AmStar (1.5%), SCB JustOne (0.88%-2.38%) still gives higher interest no matter how much money you deposit. This is because AmStar does not give you interest for the 1st RM5k.

This post has been edited by winner: Nov 16 2009, 05:24 PM

HOWEVER, you must take into consideration the monthly service charge of RM5 if your average balance falls below RM3k, whereas SCB JustOne won't charge you anything regardless of how much balance you have.

Lucky you! Do make sure you get the confirmation from different CS officers and note down their names to avoid future argument.

It's AmStar Extreme that gives 5x free ATM MEPS and online IBG. However, interest rate of AmStar is higher than AmStar Extreme.


That's the plus point.

Did MBB impose penalty charge on your early prepayment?


You should report to the bank immediately. You must fight for your rights as you did not sign the bill. The situation will be getting more complicated if the waiter imitated your signature. He must have thought you were drunk!

Alliance is giving away 10,000 bonus points to newly approved cards.

http://www.alliancebank.com.my/ccard_1switch.html

However, I am wondering who will apply for new CCs at this point in time ahead of the confirmation from banks on the possibility of absorption of service tax.

This is quite normal, especially at pubs. For certain pubs, unless you are a regular customer, the waiters normally give separate bills, e.g., you order 1 jug first and 2 minutes later you add another jug. The bills will come to you one by one separately. I also encountered another similiar situation in StarBucks, where I ordered a few cups of coffee and the cashier keyed in the order and showed me the amount. Immediately after that my friends selected some pieces of cake but the cashier couldn't combine the bills. I paid using the same cc. This also happened to me in Isetan and Parkson, just to name a few. Banks did not bother.

No. Most banks give a common reason - "it is management's decision".

Don't worry. Many people will "dump" them soon!


Even if you don't reveal the name, most of us have already correctly guessed which bank was. Who else but the "most efficient" bank!

Actually I received a call from HLB promoting this card to me on Monday. HLB has amended the T&Cs where cash back is not based on spending amount of denomination of RM100. You can get 1% cash back for any amount spent, provided that the amount must be more than RM50. Besides, petrol purchases are not included. No reward points are given.


You should send your application via fax and apply directly from any HSBC branch. It is faster.


Unfortunately, NONE of the CCs in the market are in HOT demand now. Consumers are awaiting confirmation from banks on the service tax issue.

Btw, my colleague applied for Alliance Younique MC a few months ago and her unique picture won her an iPod Shuffle!