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Over 1,000 credit card users bankrupt till last June

Up to last June, Malaysia had 3.6 credit card holders.

Up to last June, Malaysia had 3.6 credit card holders.

Syndicated News
Written by Syndicated News

KUALA LUMPUR — November 24, 2016: A total of 1,022 card credit holders were declared bankrupt for failing to settle their debts in the first six months of this year.

This represented 0.03 per cent out of the 3.6 million credit card holders in the country.

As a result, Bank Negara introduced several conditions for the issuance of credit cards.

One is that the minimum income eligibility has been raised from RM18,000 annually to RM24,000 since March 17, 2011.

Another condition is that credit card holders earning RM36,000 annually or less can own credit cards from only two companies and have a maximum credit not exceeding twice their monthly income.

This explanation was given in the Dewan Rakyat today by Deputy Finance Minister Datuk Othman Aziz in reply to Datuk Dr. Mazian Nik Mohamad (PAS-Pasir Puteh).

He said that through the guidelines on responsible financing practices, financial institutions are required to ensure loans are given based on an individual’s ability to repay without being burdened by excessive debts. — Bernama

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