We wish to thank Mr Kuo How Nam for his feedback and are supportive of the role Credit Counselling plays to help create a better-informed borrowing society and to assist indebted individuals. We also wish to address the points he raised.

1. Fees

We wish to highlight that the points that Mr Kuo raised are standard industry charges that are levied on any credit cardholder if they do not make payment in full, and are not directed solely at Citi Clear cardholders. The credit limit of $500 will be key in ensuring that the credit line is kept manageable. Citibank has also taken added measures, including blocking the card immediately if the customer defaults on payment.

Citibank has endeavoured to deliver value to consumers, for instance, the annual fee of $28 per annum is currently one of the lowest in the market. We are also offering a waiver on the annual fee for the first year.

2. Parent/Guardian's Guarantee and Consent

We appreciate Mr Kuo's feedback that the bank should highlight to parents that besides consent, they are providing personal guarantees for the cardholders' account. We believe this requirement of personal guarantee is spelled out clearly in the 'Customer Declaration' section of application form and the parents/guardians' signatures are mandatory if the applicant is below 21 years old. We will review the possibility of emphasising this point further in our collateral.

As with any products and services, we urge our customers to review the suitability and need for the product. With the Citi Clear Card, parents have a choice and can consider if they wish to consent to the application and guarantee their children's card accounts.

3. Credit Records

The Association of Banks has adopted, as a standard industry practice for its member banks, the need to disclose information to the Credit Bureau of Singapore (CBS). As with any credit card account, we will submit a Citi Clear Cardholder's credit data.

A positive credit record with the credit bureau can work in an applicant's favour as it can help a bank better assess his or her creditworthiness and reduce processing time for the application of financial products in the future.

We share Mr Kuo's concerns in this regard. To this end, we have incorporated educational material promoting responsible use of credit and the importance of making prompt payment, into the Welcome Pack and the website.

Once again, we thank Mr Kuo for his feedback and for giving us the opportunity to clarify.

Adam Abdur Rahman

Director, Corporate Affairs

Citibank Singapore Limited