Banks should deal fairly with customers, though MAS does not interfere with fee charges

SINGAPORE - The Monetary Authority of Singapore (MAS) expects banks here to deal fairly with their customers, even as it does not interfere with the fees they charge for their services and products, which involve commercial decisions.

"In this regard, MAS requires banks to clearly and conspicuously disclose late payment fees and interest charges in credit card statements, including how such charges are computed," said Minister of State for Trade and Industry Alvin Tan on Friday (Feb 18).

Mr Tan was replying to a parliamentary question by Mr Lim Biow Chuan (Mountbatten SMC) on whether the MAS will regulate the imposition of credit card fees by the banks.

For customers who have not paid the prior month's credit card bill in full, the bank is also required to provide in the billing statement a projection of the length of time and the total amount - including interest fees and charges - that they will take to fully pay off the entire outstanding balance, added the minister.

He noted that the code of consumer banking practice issued by the Association of Banks in Singapore also specifies when and how banks can communicate to their customers information on topics such as annual fees, repayment grace periods, and interest rates.

"With transparent credit card fees and charges, consumers can make an informed choice on a product that best suits their needs," added Mr Tan.

In response to Mr Lim's point that customers who do not know that they can get their credit card fee waived upon request are at a disadvantage, the minister said fee waiver requests may not always succeed.

The criteria for waivers also differ across credit cards and their issuers, he added.

"So before... signing up for a credit card, a consumer should take note of the relevant terms and conditions, such as the expiry period of guaranteed fee waivers and the quantum of fees that are chargeable," said Mr Tan.