Interest charges on credit cards here to stay, says Deputy Finance Minister

 

KUALA LUMPUR: Malaysia will not abolish interest charges imposed on credit cards used in retail shopping, Deputy Finance Minister Datuk Othman Aziz said.

“(Doing so) could encourage excessive spending and a general lack of discipline among credit card holders,” he said in reply to Datuk Seri Hasan Malek (BN - Kuala Pilah) in Parliament Wednesday.

On questions of bankruptcy and debt management among credit card holders, Othman said Bank Negara had taken many initiatives to protect cardholders since 2006.

“The Credit Counselling and Debt Management Agency (AKPK) has helped 158,116 credit card holders settle their debts totalling RM6.5bil via its debt management programme as at end January 2018.

“For those at risk of bankruptcy, they can also consider voluntary arrangements to settle debts through the services of AKPK as a nominee,” he said.

This article has been amended based on a clarification from Bank Negara.