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The credit card issuing banks are required to provide a Product Disclosure Sheet that contains key information like card's features, fees charged and obligations of the cardholders. Picture: BT file

BY GOH DE NO

BANDAR SERI BEGAWAN - THE Monetary Authority Brunei Darussalam (AMBD) has reduced the rate of interest applicable to credit cards from the current rate of two per cent, to not more than 1.5 per cent on the total outstanding amount. For Islamic institutions, the administration fee on credit cards shall also be not more than 1.5 per cent per month on the total outstanding.

Credit card users will get a 0.5 per cent deduction in interest from outstanding payments to financial institutions beginning February 1, 2012, as part of an updated directive from the government. The new directive, issued by the AMBD on January 20, 2012, emphasises on "cost transparency", where both conventional banks and Islamic institutions are required to facilitate comparisons and informed decisions by cardholders.

"The credit card issuing banks are required to provide a Product Disclosure Sheet that contains key information like card's features, fees charged and obligations of the cardholders etc. The implications of meeting only the minimum and partial repayments shall be prominently displayed and alerts communicated to the cardholders," the statement said.