THE Ministry of Finance has issued an 11-point guideline on credit cards for banks to reduce credit card debt.
Banks have been told to neither promote nor advertise their credit cards facilities without prior approval from the authority.

Banks usually advertise the privileges of using their credit cards like enjoying special discounts for purchases and discounts for treats and dining at restaurants, extra savings for holidays overseas and receiving special gifts.

The notice also highlighted that all related costs and charges on credit cards for instant penalty charges for the late payments and so on, should be intimated in advance to the public.

Transparency and full disclosure of all related charges will enable customers to make informed decisions on credit cards that are most beneficial to them as well as to exercise caution and prudence in the use of credit cards.

The banks are encouraged to promote debit cards to facilitate cash-less payments and convenience for customers.

The minimum monthly payment shall not be less than five per cent of the outstanding balance on the monthly statement (for the first three months of this notice). Thereafter, the minimum monthly payment shall not be less than eight per cent of the outstanding balance on the monthly statement.

The full list of notice issued by the Ministry of Finance on credit cards dated December 30, 2009, is as follows:

With effect from January 1, 2010, all licensed banks providing credit card services in Brunei Darussalam shall conform strictly to the following criteria:

All credit card holders shall be at least 21 years old;

The minimum gross salary for an individual card holder shall be at least $500 per month;

The maximum credit card limit for each individual shall be based on the gross monthly; salary as follows:

Minimum Salary (X) Credit Limit
$500 < X < $1,000 1 month Salary
$1,000 < X < $10,000 2 month salary
X > $10,000 Based on the bank’s recommendation

Credit cards shall only be offered to customers who have a bank account whose monthly salary is actively credited into the account or customers who have a fixed deposit account with the equivalent value to the maximum credit card limit required;

The minimum monthly payment shall not be less than five per cent of the outstanding balance on the monthly statement (for the first three months of this notice). Thereafter, the minimum monthly payment shall not be less than eight per cent of the outstanding balance on the monthly statement;

Banks shall not permit its credit card holders to use their credit cards to pay their monthly loan obligation to the issuing bank or any of its subsidiaries;

Banks shall not offer pre-approved credit cards without the prior approval and consent of the customer;

Banks shall not promote nor advertise credit cards facilities without prior approval of the Authority;

All related costs and charges on credit cards like penalty charges for late payments, etc should be intimated in advance to the public. Transparency and full disclosure of all related charges will enable customers to make informed decisions on credit cards that are most beneficial to them as well as to exercise caution and prudence in the use of credit cards;

Banks are encouraged to promote debit cards to facilitate cash less payment and conveniences to customers;

A grace period of a maximum of six months will be granted to all banks to facilitate uniform compliance with this directive after which period customers who do not qualify under the above criteria will have their credit cards withdrawn or invalidated. Such customers will thereafter be given a period of 36 months to settle their credit card obligations to the respective banks.

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