New Credit Card Tiered Finance Charges on Retail Purchases
In line with Bank Negara's objective to encourage prudent financial management and to inculcate good financial discipline, we are pleased to announce that we will introduce a Tiered Finance Charges on retail purchases effective 1 July 2008. The Tiered Finance Charges is designed to reward credit cardmembers who have continuously made at least the minimum payment before or on the due date (“prompt payment”) with lower retail finance charges.
How does the Tiered Finance Charges work?
Referring to our December 2007 notification with the following headline - “Be a prompt paymaster today to enjoy interest savings from 1 July 2008 onwards”, the tracking of repayment behaviour is based on the past 12 months repayment behaviour effective 1 July 2007 statement onwards.
The table below illustrates what cardmembers need to do:
Tier 1 |
Cardmembers who make prompt payment for 12 consecutive months will enjoy retail finance charge of 15% p.a. on the 13 th month. |
Tier 2 |
Cardmembers who make prompt payment for either 10 or 11 months within the past 12 consecutive months will enjoy retail finance charge of 17% p.a. on the 13 th month. |
Tier 3 |
Cardmembers who do not meet the above criteria will be charged the retail finance charge of 18% p.a. |
To continue enjoying lower finance charges, cardmembers must continue their prompt payment behaviour. If payment(s) is delayed, the finance charges will be revised as per the above criteria. Should the cardmembers wish to enjoy the lower finance charges again, simply continue to make prompt payment for another 12 consecutive months from the last delayed repayment.
Revision on Late Payment Charges & Interest Free Period
In conjunction with the implementation of tiered finance charges and to further instill prompt repayment behaviour, the following revisions will be made effective 1 July 2008 onwards:
Late Payment Charges |
Minimum of RM 10 or 1% of total outstanding balance as at statement date, whichever is higher, subject to a maximum of RM100. |
Interest Free Period for Retail Transactions |
20-days from statement date provided all outstanding balances of the previous month as per monthly statement are fully paid before or on the due date. If Cardmember opts to pay partial or minimum payment, finance charges on retail transactions will be imposed from the day transaction is posted to the card account. |
Note: Retail transactions exclude Cash Advance, Balance Transfer and any other installment plans.
The implementation of tiered finance charges, the revision on late payment charges and interest free period will be effective 1 July 2008. The continued usage of your Hong Leong Credit Card will be deemed as acceptance of the above.
Should you require further clarification, please call us at 03 7626 8899.
