Hope banks can response on this before 1 Jan 2010...
Now need to decide which card to keep, DA? Amex Gold? Argh dunno which to keep...

Anyway anyone subscribed to Digi auto billing? I'm planning to console to 1 card then use rebate "earned" to offset the service fee...

You phail?

What he was trying to say is if all it takes is RM50 per year to get extra credit, those who are desperate will be willing to pay also. Cheaper than borrowing from ah long what.

Agree with you. I too use CC to save money... wtf with their plan...

u dont get wat i mean.... those who debt, or those who plan to debt, will still just ignore the rm50 chargers, they can apply a cc, and then just use and continue to debt...


and this rules become unfair for people like me, wich clear every month

they should put those charges on people who don't pay their bills after x months.

Yes, and I was saying it is not targetted at such ppl. Alot of ppl don't intend to borrow in the first place, but take on alot of CC due to advertising,sales agents,etc, and THEN fall into the trap of starting to accumulate debt.

Learn to read before passing judgment of failure upon one person.

And as I've mentioned before, it's obviously not the most effective way to curb debt, but one of the simplest to implement

Figure, I never said it'll be a huge success. I was saying it has it's validity, and will work to certain extents. READ : Not most effective method

Thats why he said its not going to work.
Basically there are two category of card owners. One with money and one without. What they did will deter those with money who use card for convienient or to earn rebates. But that RM50 is nothing for someone looking for credit. This latter category of card owners are those who keep registering new cards to balance transfer to get out of blood sucking interest rate. This free up the credit in the first card and the spending continues. This cycle continue each and every time the card owner need fast cash and fast way out. So if you want to stop prudent spending, suspend all new cards or limit one card per person.

This post has been edited by andrekua: Oct 24 2009, 12:31 AM

Yes, it won't stop the 2nd category of ppl. It however will stop the first category from falling into the trap of accumulating debt. Yes, such ppl initially subscribe to cards for convenience and rebates and benefits and what nots, but there are numerous of such ppl who fall into the trap of delaying payment.

Such ppl start out harmlessly claiming they just want convenience. Which at that point was all they needed. But since cards rewards more the more you spend, they start shifting all expenditure to the card. To top that up, they start spending more than usual because what they purchase in this month, they can worry about it with next month's income. Then something pops up next month, messes with their cashflow, and they realise they're paying ridiculous interest. So, they apply another card to balance transfer. And while they can't make purchases with the card with transferred balance, they could always apply another one, and then the vicious cycle repeats itself.

You're looking at it from 2 extremes, that ppl either spend wisely on cards or start off looking for credit. I'm saying that there're ppl who start of being the former, but gradually shift to the latter, and thus fall into the trap of accumulating debt. Once they're there, they get used to the luxurious lifestyle, that they don't want to stop.

I dont think I wanna drag this too long.

Like I describe, people who has money and always paid full, they are more aware of their spending and usually does not overspent unless in a forceful situation or emergency. Like you said, its possible for them to turn into 2nd category people but think about it, how hard was it for them to apply for another card and doing a BT, in the first place? Will that RM50 service charge be a deterent for them in this desperate situation? If the government want to prevent this, then they should limit the credit to you instead of charging you. What right do they have to charge you when they aint the party responsible for providing the services? This is clearly a measure to rip us off.

@andrekua,
Basically, they should go tell the banks to stop issuing us so many CCs !

They should just ban credit card. Promote debit card kao kao and Malaysia will be debt free forever.

@andrekua

Neither do I want to drag it anymore. I get where you're coming from, just say I've seen alot of ppl go all wrong due to the number of cards they're trying to service. The service charge is suppose to prevent this in the first place.

Yes, there're obviously more effective ways, but the government obviously chose the one easiest to implement, and well, beneficial to them at the same time.

I have some outstanding balance on my cc. Can I cancel the card and just continue to pay the debt?

Thanks.

---

Added on October 24, 2009, 1:58 amactually it dosen't just means "propose", it means "must enforce". but they probably will revised it in few months time if got many complaints, same like the EPF contribution case

This post has been edited by saiga: Oct 24 2009, 01:58 AM

@saiga,
I'm quite sure there's no turning back on this particular announcement. No, U can't close an account until U haf finished paying up all balance owing.

for me the new impose rules is stupid...

to promote prudent spending ??

what's the relationship between imposing charge on each card with prudent spending ?? is it when we pay rm50/year/cards we can spend more prudent ??...

clearly the G simply want to earn extra income here... this is insane la...

time to cut guys our cards guys....later in PRU13 we cut the power of existing government laaa...

According to the budget 2010, start from Jan 1, 2010 every credit card - RM50 service tax yearly, supplementary card - RM25 service tax yearly. If there is annual fee, we gotta pay it together with service tax.

Charge cards (eg. AMEX) will be charged RM50 service tax yearly too.

The only unclear thing is debit card, any clarifications on this?

My Friend
Our 1 Malaysia boss is not stupid.
There are 12 Millions CC and after charging RM50 say 50% will return the card there are still 6.0 Million a round
say that on the average they are charge RM40 each.
The government will get 240 million a year... a lot of monies
the collection is easy and fast .. and don't need resources , just tell the less than 30 banks to bank in the monies. Other form of taxes are not so easy to implement and have collection problem.
The reason given are just excuses so that the raayat will not complained.
If your work now is to promote CC .. I think it is time now that you find another job.
4 of my card will be returned soon to the bank. I will have a thinner purse...hehe

This post has been edited by rosdi1: Oct 24 2009, 07:59 AM

Hye was right. BN introduced this credit card service fee back in 1/1/1997 but was abruptly scrapped in 1/4/2001. The newspaper didn't say what was the reason they cancelled the service fee back then though.


It does not apply to debit card.

This post has been edited by MilesAndMore: Oct 24 2009, 08:00 AM

If they would do it like this someone who clears the bill every month would be waived off the service tax?

I am going to keep some cards for a while to see the bank's responses...maybe they'll give some better offers to upset this 'service tax'