I am very upset today!!
This whole month is giving so much negative news to the rakyat! From fuel hike to electricity tariff increased. What more to come?
This morning received an email from my niece saying that –
“With effect from July, credit cardholders who don’t pay up in full and on time may end up paying more.
Last year, Bank Negara Malaysia announced a tiered pricing structure (TPS), which will be implemented this July 1, under which those who settle their minimum payments prompt will be charged a reduced interest of the usual 18%. However, credit cardholders are not crying foul over a recent development – the removal of the interest-free period for those who do not pay up their bills in full.
Under current arrangements, credit cardholders enjoy a 20-day interest-free period on their new retain transactions. However, after July, only those who make full payments before the due date will be entitled to the interest-free days. Those who make only partial or minimum payments will be charged interest on the day the new purchases are posted to the card’s accounts. In addition, the late payment charge is now a minimum of RM1 or 1% on total outstanding balances; previously it was 1% of the minimum payment amount.
In a reply to the Consumers Association of Penang (CAP), Bank Negara stated that the ‘interest-free period was amended in line with the International practices where the interest-free period is provided only for non-revolvers.’
Cardholders who cannot be prompt in their minimum payments because they do not have the money are now going to get into bigger debts, says SM Mohamed Idris, CAP’s president.
Those who use their card for convenience or to earn points are advised to pay close attention to the outstanding amount. If you continue to pay in full diligently, you will not be affected. Those who intend to pay the bill in full, but pay in round numbers or pay the wrong amount will be severely impacted if he makes a big purchase on his card, as he will be charged interest on this purchase from the date of transaction.”
By Tan Su-Yin (Personal Money; June 2008)
What more to come?? How many of us could bear such negative news?? And how many of these cardholders can pay full amount? People are using credit card, because they are not only wants to earn points, but, it gives a period of time to pay an item in stages.
If such, why would our banks are giving so many credits to people?? Why would the bank approves those credit cards?? Why would the bank increase those credit limits?
blueks
15 years ago
