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Putting Into Practice the Requirement That a Credit Card "Card Issuing Institution Taking the Initiative to Raise a Card Holder's Credit Limit Shall Obtain the Consent of the Card Holder"
(17 August 2004)
Letter Ref. Jin-Kuan-Yin-(IV)-0934000495
Subject:
Please be advised and comply with the matters set out in the "Statement" with respect to putting into practice the requirement that a credit card "card issuing institution taking the initiative to raise a card holder's credit limit shall obtain the consent of the card holder."
Statement:
1. This is in response to the letter dated 10 May 2004 (ref. Cyuan-Sin-1146) sent by the Bankers Association of the Republic of China to the former Ministry of Finance concerning the above-referenced matter. Because the Bureau of Monetary Affairs was transferred to the jurisdiction of the Financial Supervisory Commission on 1 July of this year (2004), the present letter is issued in the name of the Financial Supervisory Commission.
2. To promote sound development of credit card and cash card business and protect the rights and interests of consumers, a credit card issuing institution taking the initiative to raise a card holder's credit limit shall notify the card holder in advance and obtain the written consent of the card holder before it may raise the limit. Please also incorporate this rule into the self-regulatory code for credit card business.
3. A cash card issuing institution taking the initiative to raise a card holder's contractual limit or available limit shall notify the card holder in advance and obtain the written consent of the card holder before it may raise the limit. Please also incorporate this rule into the guidelines for credit card business.
4. Please inform all credit card and cash card issuing institutions that the rules in points 2 and 3 of the above "Statement" are to be implemented beginning from 1 November 2004. |