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Explanation to Interpretation Provided by the Commission’s Letter Jin-Kuan-Yin-(4)-Zi-09640003490 dated July 24, 2007 with Respect to Financial Institution’s Handling of Unsecured Revolving Credit Business via Drawing the Credit by an ATM Card
Issuing Agency: Financial Supervisory Commission, Executive Yuan
Date of Issue: December 25, 2007
Ref. No.: Letter Jin-Kuan-Yin-(4)-Zi-09600501880
Subject: With respect to a financial institution’s handling of a unsecured revolving credit business via drawing the credit by an ATM card, which was interpreted by the Commission’s Letter Jin-Kuan-Yin-(4)-Zi-09640003490 dated July 24, 2007 is a cash card business mentioned in the ‘Regulations Governing the Cash Card Business of Financial Institutions.’ As regards the issue, whether a grace period is given to a financial institution which handles a unsecured revolving credit business via drawing the credit by an IC-ATM card prior to the application of the Regulations, kindly notify every member institution to handle such an issue pursuant to the Explanation, and acknowledge receipt of this letter.
Explanation:
1. This letter is a response to the Letter Chung-Hsin-Yin-Hsin-Yun-96200069 dated November 9, 2007 of the Chinatrust Commercial Bank, Corp.
2. With considering the rights and the benefits of the existing customers of the unsecured revolving credit businesses via drawing the credit by ATM cards, and taking adjustment of a bank’s practical operation into account, each financial institution may continue to handle the unsecured revolving credit business for its existing customers in accordance with the original agreements until the expiration of the agreements. However, when the agreements are due for renewal, the financial institution shall handle the said business pursuant to the Regulations.
To (The Original): The Bankers Association of the Republic of China
To (Copy): Chinatrust Commercial Bank, Corp.; National Federation of Credit Cooperatives; Financial Examination Bureau, Financial Supervisory Commission; Banking Bureau of the Commission (Division 4 and Division 6) |