Only fraction of credit card holders declared bankrupt

ONLY 1,022 out of 3.6 million credit card holders have been declared bankrupt for failing to settle debts from January to June this year, says Deputy Finance Minister Datuk Othman Aziz.

A majority of them were aged 45 and above, and only 10 of them were between 21 and 30 years old, he added.

To help the people manage their finances properly, he said the ministry had set up the Credit Counselling and Debt Manage-ment Agency and Pengurusan Wang Ringgit Anda (Power!) programme.

To stem the problem of credit card bankruptcies, Bank Negara has introduced several conditions for the issuance of credit cards to ensure only those eligible were given credit card facilities.

“Minimum income eligibility for credit card holders has been raised from RM18,000 annually to RM24,000 since March 17, 2011.

“Credit card holders earning RM36,000 annually or less must have a maximum credit limit not exceeding twice their monthly income,” he told Datuk Dr Mazian Nik Mohamad (PAS-Pasir Puteh).

Othman said the guidelines on responsible financing practices stated that financial institutions were required to ensure loans were given out based on a person’s ability to repay without being burdened by excessive debts.

On a separate issue, Minister in the Prime Minister’s Department Datuk Seri Dr Jamil Khir Baharom said restaurants seeking halal status should seek approval and obtain official certificates issued by the Islamic Development Department (Jakim) and the respective state Islamic affairs councils or departments.

“When it comes to restaurants with ‘pork-free’ signboards in the premises, this matter is under the jurisdiction of the Domestic Trade, Co-operatives and Consumerism Ministry.

“They have to follow the procedures set by Jakim if they want to set up halal-compliant restaurants,” he told Ahmad Marzuk Shaary (PAS-Bachok).

Jamil said vegetarian restaurants that did not serve pork or alcohol would also have to follow the same procedures before they could be declared halal restaurants.