More transparency in credit card businessFebruary 20, 2014
Karachi: State Bank of Pakistan (SBP) in a circular on Tuesday has asked presidents and chief executives of all banks that in order to enhance the existing level of transparency and disclosure in the credit card business, it has been decided that banks shall invariably provide an upfront key product fact sheet in the form of a Summary Box to their prospective customers with effect from September 01, 2014.
A specimen of the Summary Box containing the minimum information relating to Annualized Percentage Rate (APR), effective interest rates, minimum monthly repayments, card limits, fees & charges, insurance coverage, etc. was sent along with the circular for meticulous compliance.
Banks may, however, add any further material information in the Summary Box as they deem necessary. Further, before issuing any credit card, the bank shall retain a duplicate copy of Summary Box duly signed by the customer and authorized banker, in line with SBP record retention regulations.
Failure to comply with the above directives shall attract penal action under the provisions of Banking Companies Ordinance, 1962.