Monetary Authority of Singapore
Dear Sir,
I refer to Get credit card firms to lower late payment rates (Today 21 Oct 04).
2 The interest rates that banks charge are based on their commercial considerations, which include their assessment of the risks of the transactions. These are commercial decisions which MAS does not seek to influence. However, our regulations do require card issuers to disclose interest and late payment charges in their credit card bills to cardholders.
3 MAS agrees that the more sustainable solution to keeping bankruptcy and loan default rates low is for Singaporeans to learn how to better manage their finances. The MoneySENSE national financial education programme was launched to help Singaporeans acquire the skills and knowledge to better manage their day-to-day finances, make prudent investments and plan for their longer-term financial needs. MoneySENSE has worked with the Association of Banks Singapore (ABS) to publish information on the responsible use of credit cards and the questions consumers should ask when getting a credit card. Ultimately, consumers should learn to live within their means and take greater responsibility for their own financial well-being.
Yours sincerely,
Angelina Fernandez
Director (Communications)