No interest free period
No interest free period 20 days for those make credit card payment late
I just knew this few days ago, just because I notice some abnormality on my credit card statement. There are additional Finance Charges Vs The Outstanding Balance, the amount shown is much more higher, and that make me feel curious. When I refer to the backside of the statement I found this sentence “Finance Charges imposed to new transaction also”, this really make me shock~
Then I checked with the customer service centre, and the person who answered the call told me that this new rules implemented since 1st July 2008.
It goes like this (Taken from Standard Chartered Website)…
Lower Interest Rate with Tiered Pricing Structure effective from 1 July 2008
In line with Bank Negara’s initiative to encourage prudent financial management, retail purchases will now be subjected to a Tiered Interest Rate Structure. We are pleased to introduce revisions to our credit card finance charges and interest free period.
What does this mean? The Tiered Interest Rate Structure is designed to reward customers who are timely with their bill payment. You will enjoy a lower interest rate on your retail transactions if you make prompt payments.
How does Tiered Rate work?
Based on your last 12 months repayment behaviour as reflected in the July 2007 statement onwards, the finance charge applicable on your retail transactions will be determined as per the table below:
*Prompt payment = Full / minimum payment by payment due date.
Minimum or full payment made on or before payment due date.
Minimum or full payment made after payment due date.
Revised Late Payment Charges & Interest Free Period effective from 1 July 2008
In light of this change, the following revisions on late payment charges and the interest free periods will also be applicable at the same time:
There is a question, HOW MANY Of YOU MAKE FULL PAYMENT EACH MONTH?
According to some news mentioned that there is ONLY 1/3 of the total 2.7 million credit card holders in Malaysia Clear all the Outstanding Payment before due date. It also means that there are 1.8 million credit card holders will affected by this rules. DO YOU KNOW ABOUT THIS PREVIOUSLY?
Maybe you did, but I don’t. Is a bit late for me to know about this news, after I discovered that my BANK actually charge me on new transaction, just because I have few hundred outstanding balance in previous statement which is not clear.
In good intention to make credit card holders trained to be better money management, but actually enable BANK to earn more, because there are a confirmed 1.8 million credit card holders will pay more due to this rules. Thanks…
Related News:
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From My Story
From Standard Chartered Bank
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From The Star
From Asiaone Business
From Malaysia Kini
From KLSE Talk 1
From KLSE Talk 2
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Alan, I did know about Revised Late Payment Charges & Interest Free Period effective from 1 July 2008.
But I do not know about Finance Charges imposed to new transaction also…
Winnie:
The Same thing happens at here… I heard about the interest reduction if good payment behavior but never notice that new transaction also got Finance Charges.