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Explanation to Mechanism for Handling the Premium Currently Offered by Each Card Issuing Institution–the Mechanism was Reported by the Bankers Association of the Republic of China
Issuing Agency: Financial Supervisory Commission, Executive Yuan
Date of Issue: November 05, 2007
Ref. No.: Letter Jin-Kuan-Yin-(4)-Zi-09600231240
Subject: With respect to the reported mechanism for handling the premium currently offered by each card issuing institution, please notify every card issuing institution to handle these premiums pursuant to the handling mechanism discussed by you and the Explanation. Kindly acknowledge receipt of this letter.
Explanation:
1. This Letter is a response to your Letter Chuan-Hsin-Zi-1480 dated May 23, 2007.
2. Each card issuing institution must, pursuant to the Commission’s Letter Jin-Kuan-Yin-(4)-Zi-09600157480 dated May 3, 2007, truly handle the premium offered by it in the future.
3. With respect to every premium offered by the card issuing institution, if there are grounds which can make a card issuing institution liable for the premium currently offered by it, the card issuing institution shall not change the validity period and the application conditions of the premiums arbitrarily within the validity period. If, nevertheless, there are no grounds which can hold the card issuing institution liable for the premium, the card issuing 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 - it shall still handle these premiums in accordance with Article 19 of the ‘Regulations Governing Institutions Engaging In Credit Card Business.’
To (The Original): The Bankers Association of The Republic of China (Kindly notify each card issuing institution)
To (Copy): Consumer Protection Commission (CPC), Executive Yuan (enclosed with Letter Hsiao-Pao-Tu-Zi-0960002060 dated March 6, 2007 and Letter Hsiao-Pao-Tu-Zi-0960003310 dated April 14, 2007); Financial Examination Bureau, Financial Supervisory Commission; Banking Bureau of the Commission |