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Card Issuing Institutions Required to Inform Card Holders of the Minimum Credit Limit Provisions for Various Card Types
(23 March 2004)
Letter Ref. Tai-Tsai-Rong-(IV)-0938010418
Subject:
With respect to whether members of the public may apply to lower the credit limits of credit cards, please promptly inform all credit card business institutions to comply with the matters set out in the "Statement." Please be advised and forward the information herein.
Statement:
1. This is in response to the letter dated 13 January 2004 (ref. Cyuan-Sin-0125) from the Bankers Association of the Republic of China.
2. According to a survey conducted by the Bankers Association, all card issuing institutions can in principal process applications by members of the public to lower credit limits. However, to maintain the value of cards and comply with the recommendations of international organizations and internal operational rules, some card issuing institutions set minimum credit limits for card types of different grades: if a card holder requests to lower the credit limit to a level below the minimum limit for a given card type, the holder must change card type or accept lowering to the set minimum limit only. Thus, to protect the rights and interests of consumers, card issuing institutions shall publish minimum credit limit provisions for each type of card they issue on the institution's website and in relevant card holder information, and when approving cards, shall clearly disclose it in the manual of card holder rights and interests or the card approval notice.
3. The Bankers Association shall incorporate the aforesaid rules into its self-regulatory code for credit card business. |