Some people have many credit cards, especially those without annual fees or those where annual fees can be waived easily, just in case any promo pops up
Now all those will have to be cancelled
Some have a few cards from the same bank, one for points , the other for cash back, another is store specific
sometimes cards comes bundled together
all of those will have to be cancelled.
Having 10 or more credit cards is not unusual nowadays

hard to implement because banks don't know how many cards you have with other banks
so this system would require that you pay the government directly, with the banks reporting to the government how many cards each person own, tracked by IC maybe ?
But it'll be really hard to make people pay
or if it's 1st CC per bank is free, then it defeats the purpose

I don't agree with this tax but I don't think it is burdensome either, just cancel your cards en masse like what I'm doing now. If you don't spend a lot then not using CC is also an option, just stick to debit cards

Because the more banks you have cards with, the higher your credit limit ?
Why limit yourself at 2 cards with 300k each when you can have 10 cards with 300k each ?
The credit limit offered to you by each bank is independent of the credit limit offered to you by other banks, if you have little to no outstanding balance
Also each card has different caps on cash back and different modes of cashback , for example card A provides 5% cashback on petrol, but only on weekends , limited to RM50 / month . Card B provide 5% cashback on petrol everyday , limited to RM50/month, then you pump using card B on weekdays and card A on weekends, to make sure that neither card will reach the limit
same thing with groceries. Once the cash back cap on this card runs out, use the next card

This post has been edited by jfleong: Aug 11 2018, 06:20 PM

That is CCRIS, regulated by BNM.
Only for bad credit and current financial obligation (others loans, and monthly payment) not for info like how many cards you have, what is the credit limit on each card etc

This post has been edited by jfleong: Aug 11 2018, 06:48 PM

Privacy issues. I have serious concerns about the idea that banks can tell each other info about you like how many CC you have with them. Then maybe another bank will use this for marketing purposes and convince you to Balance Transfer to them. Under the current system other banks don't know anything unless you have defaulted

but it's the banks who are collecting it on behalf of the government right ? Or do you propose that we pays straight to the government ? People might just ignore it ?

Banks tell gomen , then cardholders pay to gomen >> many might dodge
Banks tell gomen, gomen compile data, then gomen tells banks how much to collect >> too complicated and time consuming . Which card is considered "first" and when happens when the card you consider "first" is cancelled ? Bank tell gomen you cancelled that card and then gomen tells the next bank to not collect from you ? How long will this take ?
Banks tell other banks >> privacy issues

Ultimately it will still cost you, because banks cannot "waive" it. They can offer to pay it for you or offer you cash backs , but still it will come out of your perks
If their perks decrease or gets restricted but they offer a RM25 cash back for spending money RMXX , you know why