FSC urged to drop credit card regulation

The China Post staff

The Consumers’ Foundation (CF) yesterday urged the Cabinet-level Financial Supervisory Commission (FSC) to scrap the regulation that allows local credit card issuers to amend their contracts with cardholders as long as they grant a written notice to cardholders 60 days before the amendments take effect.

The CF issued the call after finding, in a recent survey of contracts signed by seven card-issuing banks with customers, that most major issuers such as Chinatrust Commercial Bank, Taipei Fubon Bank, and Shin Kong Commercial Bank have unilaterally revised the contracts to drop some original benefits for cardholders. The CF cited one case as evidence of the undesirable phenomenon. A consumer surnamed Huang earlier applied for an “Amoney Platinum Card” issued by Taipei Fubon Bank, with the original contract clearly stating that Huang would enjoy a 5 percent feedback once his spending has accumulated to NT$100,000.

However, Huang recently received a notice from the bank stating that starting May 1, the feedback bonus can be used to deduct 10 percent of new spending shown on the bill for the following month, and if the bonus is not used, it will become invalid automatically.

CF Chairman Chen Jen-hong lashed out at card-issuing banks for regarding consumers as fish, as once consumers are hooked, the banks soon turn a blind eye to the interests of consumers.

Chen called for consumers to double check with banks the rules and regulations stated in contracts before signing them.