THATS THE WHOLD POINT ON THE RESTRUCTURING. THEY SHOULD EXAMINE THEIR HEADS!
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Revert to 20-day grace period, consumer groups urge banks

http://www.thestar.com.my/news/story.asp?f...&sec=nation

KUALA LUMPUR: Consumers groups are calling for banks to revert to the old policy on the 20-day interest-free period for credit card holders.

Late last month, Bank Negara announced that the interest-free period would only be enjoyed by those who pay the outstanding amount in full.

Previously, credit card holders who made a partial or minimum payment of their outstanding amount were able to enjoy the grace period.

According to Consumers Association of Penang (CAP) president SM Mohamed Idris, the old ruling was more flexible and did not burden consumers.

“The new ruling states that the grace period can still be enjoyed by those who pay the full amount, but what about those who can only pay a partial sum? Not everyone can pay the full amount every month.

It is not because they won't; it's because they can't he said.

Fomca secretary-general Muhammad Sha’ani Abdullah said: “Not all cardholders can maintain full payment. What if they get sick or retrenched?”

Sha’ani added that the interest-free period is one of the advantages of using a credit card.

“Without the grace period, there is no difference between using a credit card and paying cash,” he said.

Meanwhile, Fomca president Datuk N. Marimuthu said that the interest that must be paid by users who default more than once, as stated in the new three-tier structure, should be reduced from between 15% and 18% to 12%.

“The reduction can help those who cannot manage their credit card debts,” said Marimuthu.

He added that if the system continued this way, people would be discouraged from using credit cards.

Actually, it does discourage ppl from using a credit card. think that was the whole purpose of this...

FYI, this thing had been circulated since june 07.. but somehow either no one noticed about it or as usual-lah; malaysian mentality - all must be last minute one! banks had issued reminders to their customers starting Aug last year about this. so effectively we got about 10 months to make adjustment in our spending habits.

Dont think they will ever repel the 20days interest-free period for those paying in full only. besides they are making less from the interest cut of 15%. its a tit-for-tat i would say.

BTW, if u still prefer cards... why not try debit cards.... Betterstill, go for cash. recession is imminent guys!

The main reason that I use Credit card a lot was because of the 30-days interest free grace period. Then they reduced it to 20 days... now it only applies to those who make full payments.... it's either the bank is getting greedier... or the credit card business is getting smaller profit margin because of too many defaulted credit card debts.

It is a dbl edge sword really.. it forces ppl to really plan their credit card expenditure, force ppl with debts to lay off using it etc.

I expect it to affect consumer spending as well, which in turn further affects our current 'internal consumption' driven economy.

when i went to alliance bank last week to do refinancing on the house, the sales person told me a lot of people are refinancing their home to pay off their credit cards.

well, i guess people are aware of that.

It has been a trend for most of the people to do refinancing to settle the old debt in their credit cards. Some took personal loan. (Dont take CIMB express.. interest is 36% p.a.)Wah..going for the BLR - 2% ka bro? approve olredi or not? enjoying the rate or want to take out money for MOD? When we do MOD we are actually helping the economy to grow

haha... no lah. i am not taking any money out. just that my previous RHB package was too high at BLR+0.5%.

now getting a flexi loan package. every month will dump my salary in to reduce the interest.