revert = cut all

wow then how about complimentary credit cards then? If those idiot banks keep sending bunch of thrash cards to me how am I going to stop them?

Cut both and apply from another bank please


Believe they will no longer do so after the service charge takes effect or else you can lodge a complain to their credit card centre or BNM.

first card to be cancel is cimb/DA card. once cimb lost all their credit card business i'm sure BN gov gonna do something in order to help cimb. rite?

Recent moves by the government to impose rm50 & rm25 service charge tax for principal credit/charge card and supplementary for me its more burden to rakyat rather than to “promote prudent spending”. I’m not a financial expert or analyst…but here are my complete comments. When we look at the so called objective of this service tax are imposed which is “to promote prudent spending”, we can relate it very much to the impact to the user or rakyat. I categorized rakyat/consumer in 5 financial groups. For category A to D, assume in average they have 4 principal cards each to their name.


Group A
People who are using cc as purely a payment tools and pay all their cards in full for each statement period. People in this category might also have & use their charge card. We can conclude, this group are from high income group & certainly can afford to pay all their card in full every month. So, they already practice prudent financial management. So they actually not the target group for this new government policy, Yet they have to pay the service tax for their cards even though they are not the target group of the objective of the decision. But they certainly can afford to pay rm50/card/year for nothing since they are from high income group.
Conclusion: Objective of “to promote prudent spending” not met for this group since they already practicing prudent financial management. Hence, the tax can be seen as easy money for government.


Group B
People who are using cc as both credit & payment tools. In this group they might settle in full payments some of their cards every month and some cards they might leave some balance (debts). They might also use cc as easy-payment(installment) such as buying LCD TV/Notebook & many more plus they alsao might use for emergency purpose. People in this group usually come from mid income group. They can be classifieds as practicing prudent financial management as well because they take advantage of the credit facilities of the cc issuers. But they are not from rich or high income group. Hence, charging them rm50/card/year should be a new yearly burden to them. Assuming averagely they have 4 principal cards to their name, rm200 a year for service tax for cc can be considered very high & certain burden to them.
Conclusion: Not the target audience for the policy. Objective not met. They might have to cut to 1 or maximum 2 cards only and still paying rm50 or rm100 (which is a burden to them) for the newly imposed tax..


Group C
People who are using cc totally as a credit tools. In this group, they pay all their cards with a minimum payment every month. Definitely, they’re not from high income group. They are actually form the group that have minimum requirement to subscribe/apply for cc. Hence, with debts in each card, they cannot cancel their cards immediately. Assuming averagely they have 4 cards with them & all still have outstanding, they need to pay another rm200 a year for the service tax. This group is the target group for the new policy by the government. But as describe earlier, the outstanding in the cards also they can only afford to pay minimum, how they gonna pay extra rm200 a year. It will increase their debts/outstanding. They could fall to the group D.
Conclusion: The target audience for the new policy. But implementation not met objective since it made the situation worsened rather than help them to promote prudent spending.

Group D
People who are using cc totally as a credit tools and cannot afford to even pay minimum. People in this group actually on their way to be declared bankrupt
Conclusion: Charging them rm50/card/year is ineffective since they cant afford to pay their own outstanding debts. Objective “to promote prudent spending” not met.

Group E
People who are not using any credit/charge card. They use debit or cash instead. This could the potential target group for the objective. There are from mix income group. Since the new policy of government imposing rm50/card/year, they might abandon any interest of applying a credit card. So they’ll never encounter such service fees. They will spend only whatever of their capable.
Conclusion: Objective met. But government earn nothing from them because there’re not cc owner..



Other potential impact:
- Mass canceling cc.
- Economics stimulation low since discourage of spending.
- CC market will be worsened. Many merchant might cancel terminal rental since not many people will opt to pay by cc. The 0% installment plan also might be no more available since people cut the numbers of their cc & credits available to them low & unable to proceed for installment..
- Microcredit & along will be popular option rather than cc balance transfer
Snatch theft might increase
- Bank might be more competitive on their cc product

confirm will terminate, if the policy endorse.

i got 5 now..no outstanding, but still using.
5 x 50 = rm250. gila!

This post has been edited by zcatz: Oct 26 2009, 05:22 PM

i got 13.
13 x 50 = 650

p/s: no outstanding.

This post has been edited by NSR: Oct 26 2009, 05:24 PM

consequently...

A B C cut down the number of CC, reduce spending...

D & E cant spend much due to reduction in terminal...a lot place they cant spend....

end up total reduction in local spending...
with the lower of FDI as well, gov don hav enof stimulation to boost eco....
collapse.... j.k.

fully agree here. alongs must be celebrating now!

need to stop spending using CC for a while, i guess.
next month, much easier to terminate if the policy goes on.

Ya. Thanks MilesAndMore !

SPOT ON MATE ! You should forward a copy to The Star Newspaper.

wth man, the government assumed that people using cc were rich or ppl likes to spend more than they earned ? imposing rm50 a year for a card doesn't helps spending less loh. higher burden for them is what i can say.

wtf, is just like robbing people's money legally. bank deserves to get the rm50 but not the government. anyway banks, merchants, shopping malls and so on will start crying next year. In addition to this, i think ah long is much happier than ever after they heard the budget 2010 announced. personally, i will cut all my cards and keep one for payment purposes =) gl to you all man.

1 of the high post women in MCA said the rm50 is a very good move by najis and believe it will work after interview by a reporter.
i dunno she is speaking from her heart or from her lung.
i believe maybe she and her family members is holding many cc and have some outstanding. she must be very 'armdui' now.
p/s: all the cc holder after receive the news from najis sure in their heart will say," WTF!!!"

This post has been edited by NSR: Oct 26 2009, 06:27 PM

aiya..talk so many..prudent spending...at the end "extra poket money" is the main thing..goverment take our RM50 from each person .imagine 1 person 2 cards RM100 x malaysia population = RMxxxxxxxx billion in their poket edi then they happy..rich will become richer..poor and become poorer...then will affect economy, nobody dare to buy things edi... encouraging robberies..coz all bring cash liao..then police officer will tell u "moi, jangan la bawa cash banyak sangat, sini black listed area la...."then all stay at home..acting "the END of DAY" yeah ..MALAYSIA MEMANG BOLEH MA~~clap for our country...


as i know alot of ppl cancelled their cc, coz when i called to bank and i mentioned wana cancel..they ask me the reason i just mentioned: "Government" then he/she automatic cancel for me liao ..noneed talk alot

This post has been edited by roundedfly: Oct 26 2009, 06:41 PM

hey...u forgot 1 in front Malaysia...haha
clap for our 1malaysia boss...

like that then we all have to sebulat hati erase the 1 from 1Malaysia and let it be Malaysia at the coming GE!

p/s: the bank should not ask for reason, but to ask,"izzit rm50 issue?"

This post has been edited by NSR: Oct 26 2009, 06:43 PM

Najib is so brilliant! He has successfully united Malaysians from all races and all economic status to come together to object to his policy of RM50 and Rm25 service tax on the credit cards. This is 1Malaysia!

depends on bank
for my CIMB i just fill up the form at the branch & surrender yr CC

Citibank, HSBC, OCBC u can called them to cancel

Some bank want u to fax in

Agreed. If i am forced to choose whom i should pay the RM50/RM25 to i will no doubt choose to pay it to the bank, anytime !


Who's the retard ?







Did not surrender ours last time my mom cancelled our CIMB Bank mastercard. She faxed the request to their credit card department and someone called a few days later to persuade her not to cancel but then she insisted to stick to her original plan so the CIMB Bank staff gave up and cancelled it right away We still have the cards. Keep them inside a box for collection

This post has been edited by MilesAndMore: Oct 26 2009, 07:58 PM