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Over 1,000 credit card holders declared bankrupt

KUALA LUMPUR: A total of 1,022 card credit holders are declared bankrupt for failing to settle credit card debts in the period from January to June this year.

Deputy Finance Minister Datuk Othman Aziz told the Dewan Rakyat that the amount represented 0.03 per cent out of the 3.6 million credit card holders in the country.

Hence, he said Bank Negara Malaysia (BNM) had 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 is raised from RM18,000 annually to RM24,000 since March 17, 2011.

“Credit card holders earning RM36,000 annually or less can own credit cards from two card issuances and have a maximum credit not exceeding twice the monthly income,” he said.

Othman was replying to Datuk Dr Mazian Nik Mohamad (PAS-Pasir Puteh) on the number of credit card holders who are declared bankrupt.

He said through the guidelines on responsible financing practices, financial institutions were required to ensure loans were given based on the individual’s ability to repay them without being burdened by excessive debts.--BERNAMA

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