Sep 12, 2013

    Some new credit rules

    Financial institutions (FIs) have to review a borrower's total debt and credit limits before granting a new credit card or unsecured credit facilities. This needs to be done for increasing the credit limit on such loans as well.

    FIs must disclose to people who roll over their credit-card debts and revolving credit facilities the potential cost of doing so and how the debt will accumulate.

    FIs must obtain a borrower's express consent for the amount of each credit-limit increase.

    FIs cannot grant further unsecured credit to people who have unsecured debts that are more than 60 days past the due date, until all past due amounts are paid.

    If a person's aggregate interest-bearing borrowings - unsecured and outstanding - across all FIs exceed 12 months of his income for 90 days or more, FIs cannot grant him more unsecured credit.