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Directions for Credit Card Credit Investigation, Review, and Limit Approval
(23 March 2004)
Letter Ref. Tai-Tsai-Rong-(IV)-0934000203
Subject:
With respect to credit card credit investigation, review, and limit approval, please be advised and promptly inform all card issuing institutions to comply with the matters set out in the "Statement."
Statement:
1. According to Article 23, paragraph 1, of the "Regulations Governing Institutions Engaging in Credit Card Business as newly amended by the Ministry of Finance, all card issuing institutions, when approving credit card credit limits, shall verify the authenticity of the applicant's identity, that the applicant has an independent, steady source of income and ample repayment ability, ascertain the applicant's debt profile (including credit cards issued by any card issuing institutions, and the total lines and account status of any consumer loans), keep relevant documents evidencing financial ability and credit investigation and audit records on file, strengthen internal controls, and implement the principals of credit investigation and extension, and exercise prudence in making approvals, to lower the risk to card issuing institutions and avoid excessive expansion of card holder credit.
2. All card issuing institutions, please re-review the current rules concerning credit investigation and limit approvals in credit card issuance and realistically review your compliance. It is especially important to exercise prudent diligence toward applicants who hold multiple cards. Audit departments shall also strengthen auditing in this respect, and comply with the Ministry of Finance Letter ref. Tai-Tsai-Rong-(IV)-0924001326 dated 27 January 2004. |