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Explanation to Handling of Related Consumption Disputes Arisen from Changes of Credit Card Premiums When the Validity Periods and the Application Conditions of the Premiums Are Not Specified
Issuing Agency: Financial Supervisory Commission, Executive Yuan
Date of Issue: May 3, 2007
Ref. No.: Jin-Kuan-Yin-(4)-Zi-09600157480
Type of Business: Credit Card Business
Type of Institution: Financial Institution
Subject: Owing to the consumption disputes arisen from changes of credit card premiums when some card issuing institutions providing these premiums do not specify the validity periods and the application conditions of the premiums, to make the sound development of the credit card market and protecting consumer rights, kindly handle the said issue pursuant to the points as explained and acknowledge receipt of this letter.
Explanation:
1. Kindly forward a notification to each credit card issuing institution that when offering the credit card premiums in the future, the institution shall be pursuant to the following provisions:
(1) Each credit card issuing institution shall disclose the validity period and the application conditions of these premiums at its website and in the handbook on rights and benefits of owning a credit card.
(2) In the case that a card issuing institution mentions any credit card premium in an application form, advertisement or a propaganda, it shall specify the validity period and the application conditions of the premiums in conspicuous manners.
(3) In the case that there are grounds which can make a card issuing institution liable for the premium, the institution shall not change the validity period and the application conditions of the premium arbitrarily within the original validity period. In the even, nevertheless, that there are no grounds which can hold the card issuing institution liable for the premium, the institution shall, at the time of changing the validity period and the application conditions of the premiums, stipulate supporting measures to lower the number of consumption disputes, and shall still handle the credit card business pursuant to Article 19 of the “Regulations Governing Institutions Engaging In Credit Card Business.”
2. You are kindly to discuss related measures with respect to the issue, whether each card issuing institutions which has provided each premium shall regulate the disclosure of the promotion period altogether, and the issue, how to deal with the existing cardholder with premiums , and issue letters and report to the Financial Supervisory Commission before May 25, 2007.
To (The Original): The Bankers Association of the Republic of China (kindly forward a notification to each card issuing institution.)
To (Copy): Financial Examination Bureau, Financial Supervisory Commission, Executive Yuan, R.O.C.; Banking Bureau of the Commission (Division 2 to 6) |