Ref No: 03/11/06

Embargo: Not for publication or broadcast before 2011-03-18 12:00:00 hours on , 2011-03-18 12:00:00 2011-03-18 12:00:00

New Measures on Credit Cards to Promote Prudent Financial Management and Responsible Business Practices

Bank Negara Malaysia wishes to announce new measures on credit cards in continuous efforts to inculcate sound financial and debt management among credit card users. These measures are also aimed to promote fair and responsible business practices by credit card issuers with further enhancements in the cards security infrastructure.

With immediate effect, the eligibility requirements for credit cards are revised as follows:

The minimum income eligibility for new credit card holders is set at RM24,000 per annum;
For cardholders earning RM36,000 per annum and less, the following would be applicable:
Cardholders can only hold credit cards from a maximum of two issuers.

The maximum credit limit extended to a cardholder shall not exceed two times their monthly income per issuer.

Card issuers will engage with the affected cardholders to assist them in restructuring their repayments to facilitate the smooth implementation of this measure. In addition, cardholders can also seek the assistance of Agensi Kaunseling dan Pengurusan Kredit (AKPK) for advice on their debt management.

Responsible Business Practices in Provision of Credit Cards

Credit card issuers are required to adopt fair, transparent and responsible approach in marketing and offering of credit cards to consumers. Issuers are not allowed to increase cardholders' credit limit without obtaining their consent. Issuers are also not allowed to offer a credit advance in the form of cheque payable to the cardholders unless the cardholders have requested for the credit advance.

To facilitate consumers in making comparison and informed decisions, card issuers are required to provide a Product Disclosure Sheet that contains key information on the card's features, fees and obligations of the cardholders. Issuers are also required to display prominently alerts to communicate to cardholders the implications of meeting only minimum and partial repayments. At the end of each year, customised information on how long it will take to fully pay off the cardholder's outstanding balance and the total interest costs if the cardholder only makes minimum repayment will be issued to each cardholder. This will be effective for annual statements issued from December 2011.

Further Enhancements to Credit Card Infrastructure Security

In the effort to further enhance credit card security and to promote public confidence in the usage of credit cards as a safe payment instrument, effective 1 January 2012, transaction alerts via Short Messaging Service (SMS) will be implemented by card issuers for their cardholders after transactions are performed. This will be followed by the implementation of the Personal Identification Number (PIN) verification for all card transactions from 1 January 2015 onwards.For further information on the new credit card guidelines, members of the public can contact ABM Connect at 1-300-88-9980, the contact centres of their respective card issuers and Bank Negara Malaysia's Telelink at 1-300-88-5465.


Bank Negara Malaysia
2011-03-18 12:00:00 2011-03-18 12:00:00

© Bank Negara Malaysia, 2011. All rights reserved.
http://www.bnm.gov.my/index.php?ch=8&pg=14&ac=2226
Conclusion, which 2 credit card should you stay with if income RM36,000 per annum or less?

I think they are going to implement it gradually starting at the RM36000 and below yearly income. I know a guy who has RM4k monthly income with RM50k credit card debt and he has been holding his debt forever. This is a scenario that BNM want to have it gone with but of course it will be most prudent to start with the fresh grad before anyone else. Anyway, I would still consider the max allowable RM12k credit limit as pretty high...but bye bye to 36 months installment lol. It is a good way to start really and definitely safer than just increase the % min payment on credit cards. That would definitely kill a lot of people.

Besides, how many of you spend like crazy after a confirmation of an increase salary from a new job or from a rumored higher than expected bonus and than living on debt for the greater part of the year and thus make no difference even with a pay raise? With tight credit you will feel yourself elevated right out and not to find out later that your pay "raise" was really only to pay for your min payment lol.

I think if I am to blame a bank it is CIMB 

Separate credit card criteria for retirees

PETALING JAYA: The new credit card application guidelines do not apply to pensioners or retirees, said Bank Negara.

An official said the raise in income requirement to RM24,000 from RM18,000 per annum was solely for those with a monthly income, adding that banks had their own guidelines to assess the credit worthiness of retirees.

Association of Banks Malaysia executive director Chuah Mei Lin said pensioners would stand a higher chance of getting their applications approved if they had a good track record of servicing housing or other loans.

AmBank Group public affairs head Syed Anuar Syed Ali said applicants' credit rating was assessed individually.

Citibank Bhd public relations officer Jaya Menon said an internal guideline would be used to assess the credit worthiness of applicants who are not on a monthly income.


Source - The Star (26/3/11)

Is this a double standard or what?

Is this a double standard or what?

wondering...my salary is below 36k pa, but somehow maybank pre-approve the m2kard platinum..do they somehow consider me above 36k?? i receive the invitation letter for platinum 1 month b4 the new guideline comes out..i've been using the petronas gold all this while..

wondering...my salary is below 36k pa, but somehow maybank pre-approve the m2kard platinum..do they somehow consider me above 36k?? i receive the invitation letter for platinum 1 month b4 the new guideline comes out..i've been using the petronas gold all this while..

First of all, how they going to know how much u earn per annum? Income tax, EPF? Some are not entirely true