Copied from the Malaysia's Sun newspaper online.
Govt to tighten rules on credit cards
KUALA LUMPUR: The Government plans to tighten conditions on the issuing of credit cards in view of the increasing number of individuals being declared bankrupt over credit-card debts.
Finance Ministry Parliamentary Secretary Datuk Dr Hilmi Yahaya said today Bank Negara was studying the conditions on the issuing of the cards so that stricter control could be imposed to overcome the problem.
He said among the measures being considered were to increase the minimum salary requirement for individuals to own a credit card, to raise the minimum payment and the setting up of a Central Information System.
Speaking to reporters at the Parliament lobby, he said 1,397 credit card holders were declared bankrupt last year from 1,152 people in 2003 and 1,117 in 2002.
He said more than 6.6 million credit cards had been issued by the banks of which 5.6 million were principal holders, adding that the cards should not be used as a mean to obtain loans.
Hilmi said the minimum salary of RM1,500 to own a credit card was too low and unsuitable with the present cost of living.
He cited a study where a person earning RM1,500 a month with five children and living in a rented house was considered poor.
"And if he has a credit card, it will only burden him with more debts," he added.
On the setting up of the Central Information System, he said it would enable banks issuing the credit-cards to examine the financial positions of the applicants.
Updated: 06:08PM Wed, 18 May 2005
