Bank Negara steps in to curb rise in credit card bills and personal loans

PETALING JAYA: Rising credit card debts and easy approval of personal loans have moved Bank Negara to introduce a fresh ruling.

Effective tomorrow, banks will implement a new payment allocation method for credit card balances to enable cardholders to better manage their mounting debts.

Banks will tabulate credit card balances by focusing on expenses hit with the highest interest rate. This will result in considerable savings in terms of interest payable.

Maybank, the country's largest bank, also wants the authorities to tighten control on the ease with which personal loans are being approved by non-bank lenders.

Its chief executive officer Datuk Seri Abdul Wahid Omar said “over-competition” among banks was also worrying him.

Occasionally, I do receive calls from a certain bank that offers 'attractive' personal loans. I only have to say 'yes' and it will be approved 'on the spot'.

Frankly, being human, I'm always tempted to take up the offer each time I get a call. Why? Instant approval, that's why. Easy. In fact, it's so easy that I know a bank actually calls it 'EASY - express loan'. ;)