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Directions Concerning Applications by Students for Credit Cards
(15 January 2003)
Letter Ref. Tai-Tsai-Rong-(IV)-0924000026
Subject:
With respect to the directions concerning applications by students for credit cards, please be advised and inform all credit card business institutions to comply with the matters set out in the Statement.
Statement:
1. Pursuant to the conclusions of the Conference on the Directions Concerning Applications by Students for Credit Cards convened on 20 December 2002 by the Banking Bureau.
2. Conclusions reached at the conference are as follows:
(1) With respect to credit card applicants of less than 20 years of age:
(i) The applicant may apply only for a supplementary card of the applicant's parent, unless the card issuing institution verifies in person the consent signature of the statutory agent, or the statutory agent makes the application to the card issuing institution on the student's behalf, or the applicant has had a stable income for a continuous 12 months and the statutory agent has given consent.
(ii) The statutory agent is entitled, by means of notice given in writing, to obtain the card holder's bill or to request termination of the contract.
(2) With respect to credit card applicants of 20 years of age and above:
(i) A card may be issued only upon confirming that the applicant possesses an independent, stable source of income and sufficient repayment ability.
(ii) An applicant lacking sufficient repayment ability may apply only for a supplementary card of the applicant's
(iii) Where status as a student is specified on the application, the card issuing institution shall notify the parents of the card holder by letter of the card issuance, and ask them to pay attention to the status of use by the card holder. The card holder may hold cards issued by no more than three card issuing institutions, and each card issuing institution may extend no more than NT$20,000 in credit limit per such applicant.
(iv) Where status as a student is not expressly specified, for applicants aged 20 to 24, the card issuing institution shall inquire on an applicant-by-applicant basis with the Joint Credit Information Center whether the applicant is a student, and shall take initiative to ascertain the actual status of the applicant. Where it is learned through other channels or from a parent thereof that a principal card holder has student status, and the card has been used beyond the holder's repayment ability, the issuing institution shall immediately take measures to handle the situation (stipulations therefor shall be incorporated into the special provisions of the contract), and shall record the person's status as a student with the Joint Credit Information Center, to facilitate the management by other card issuing institutions of student applications for credit cards.
(3) The above provisions are to be implemented non-retroactively. For cards that have already been issued, these regulations will begin to be observed from the time for issuance of a new card upon expiry of the originally issued card.
(4) Except where cooperating with a school to issue credit cards with the function of student ID cards, card issuing institutions are prohibited from promoting or recommending credit cards to student groups.
(5) The Bankers Association shall incorporate the directions discussed at this conference into amendments to its self-regulatory code. |