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Summary: Card issuers may not market the cash advance function of their credit cards.
Issued by: Financial Supervisory Commission, Executive Yuan
Date of issue: 2008/10/02
Ref. No.: Jin-Guan-Yin (4)-No. 09740004411
Subject: For the healthy development of the credit card market, card issuers are not allowed to market the cash advance function of their credit cards. Please forward this message.
Explanation: A credit card is a payment facility that allows the cardholder to pay for a purchase. The cash advance function of a credit card means to meet the urgent cash needs of the cardholder (in areas where merchants are not prevalent, cash advance can be borrowed to pay for purchases, especially when the cardholder is traveling abroad). Some issuers have been conducting phone marketing of the cash advance function of credit cards. Such practice expands the function of cash advance into a financing tool and runs counter to the essence of the credit card as a plain payment facility. Thus such practice of some card issuers should be rectified. If people have financing needs, they should apply to a financial institution for a loan.
TO: Bankers Association of the Republic of China (please forward to credit card issuers).
cc: FSC Examination Bureau. |