UOB joins other banks in raising late payment fees

UOB will raise its late payment charges on its credit cards to $90 from July 14, up from $60 previously. The bank said early this month that it had kept its late payment charge at $60 for at least three years.
UOB will raise its late payment charges on its credit cards to $90 from July 14, up from $60 previously. The bank said early this month that it had kept its late payment charge at $60 for at least three years.PHOTO: REUTERS

United Overseas Bank (UOB) is the last of the three local banks to raise its late payment charges on its personal credit cards here.

The hike to $90 will start on July 14, up from $60 previously. The bank said early this month that it had kept its late payment charge at $60 for at least three years. Also, the administrative fee for foreign currency transactions and all UOB personal and commercial credit cards - excluding all UOB American Express or UOB PRVI Miles Visa and Mastercard cards - will be raised to 2.8 per cent, from 2.5 per cent, on the amount converted.

Banks have raised various fees and charges on credit cards over the years, amid pressure on profitability and greater competition.

On June 1, OCBC Bank raised the late payment charge for most credit cards from $80 to $100. The late payment fee for its NTUC Plus! Visa credit card was raised to $100 from $60 on the same day.

DBS Bank raised its fees on May 1. An outstanding balance of over $50 on a card now incurs a late payment charge of $100, up from $80.

The annual fees for its POSB Everyday Card were also raised on May 1 - from $128.40 to $192.60 for the principal card, and from $64.20 to $96.30 for each supplementary card.

Daiwa SB Investments (Singapore) analyst He Yuxuan had previously noted that the fee increases could be attributed to the desire of banks to maintain or improve operating margins on the back of higher business costs.

A version of this article appeared in the print edition of The Straits Times on June 29, 2017, with the headline 'UOB joins other banks in raising late payment fees'. Print Edition | Subscribe