Late Payment Charges For Credit Cards.
The banks in Malaysia do not act in unison. You need to pay special attentions to which bank’s credit cards you are having because it can cause a bomb if you are holding Maybank,Public Bank ,CIMB, Alliance , Standard & Chartered, Ambank, UOB ,OCBC and Citi Bank.
These nine banks have the same policy for late payment charges .While the other eight banks are charging 1%, Citi bank and RHB are charging 0.5% of the total outstanding balance in your account.
If the MINIMUM PAYMENT is not made by the PAYMENT DUE DATE, a late payment charge will be levied at 1% of the TOTAL OUTSTANDING BALANCE as at your statement date or Rm10.00 ,whichever is higher, up to a maximum of Rm100.00
If your payment is late by even one day , it means that instead of paying 1.5% per month, you will be hammered with 2.5% of your outstanding balance. What do you call this action? Daylight highway robbery !
You have swiped and used about Rm10,000.00 in your a/c and you need to pay Rm500.00 as the 5% minimum repayment as required i.e Rm500.00. Your interest for that month would be Rm150.00 and if you pay late, you will be charged an additional late payment fee of Rm100.00!!!!! That is the penalty you have to pay for forgetting your payment due date or your miscalculations due to the many public holidays in Malaysia or you were tight and short of cash for that particular month. Previously, it was only minimum Rm5.00. Credit card holders are sure suckers, cash is king !
The other banks, Eon, Hong Leong , HSBC, RHB and MBF are only charging a late payment fees on 1% from the minimum 5% repayment amount or minimum Rm5.00 and not the total outstanding balance. Or they have followed the herd and have not updated their websites????
Those banks have introduced another killer blow to the credit card holders by removing the 20 days free interest days. You can still enjoy this facility provided you settled all your card purchasers last month. Yeah! Squish them hard and see them throw your cards into the deepest oceans.
Read carefully and take appropriate actions concerning those screwball banks . Better still cut their cards and throw them into the waste bin. If you are poor and like a beggar and have no choice , then make sure you pay on time.
At one time , those bank credit cards were given out liberally and with free gifts to entice you to own one and now the trap door is shut and you are at the mercy of those banks.
Best card at the moment is Diners Club card , a charge card which gives you 55 days interest free days , annual fee is only Rm35 but waived if you use 3 times a month. The statement date is 30th of every month and the due payment date is 25th , you get maximum interest free day if you swipe on the 1st of every month.
Pray tell me that what I wrote is the truth and if you ever have the misfortune of paying late, you will be sodomized by those banks. Arrrgh! Banks are making billions of profits and want to screw us some more!
The information on late payment charges was obtained from reading the info at the back of the monthly statements. Some banks may not have changed the info to reflect the new charges. Any error is regretted. If in doubt, please call your bank for further informations.