Singapore legislation
Regulation 14
Regulation 14
Maximum credit limit or overall credit limit
Subregulation 1
This regulation shall not apply to any Singapore cardholder who —
only holds credit cards or charge cards referred to in section 57G(b) of the Act issued by the card issuer or any of its affiliated corporations; and
has not been granted any fully unsecured or partially secured non-card credit facility (other than fully unsecured or partially secured non-card credit facilities referred to in regulation 6(9)) by the card issuer or any of its affiliated corporations.
Subregulation 2
Subject to paragraphs (3A) and (5) and regulations 18A(1), 18B(1), 18C(1) and 23A(3), a card issuer shall not permit any amount to be charged to any credit card or charge card (other than a guaranteed credit card or a guaranteed charge card) issued to a Singapore cardholder —
if that would result in —
the Singapore cardholder’s aggregate outstanding card amount exceeding his maximum credit limit; or
the Singapore cardholder’s total outstanding unsecured amount exceeding his overall credit limit; or
if —
the Singapore cardholder’s aggregate outstanding card amount already exceeds his maximum credit limit; or
the Singapore cardholder’s total outstanding unsecured amount already exceeds his overall credit limit.
Subregulation 3
Subject to paragraphs (3A) and (5) and regulations 18A(1), 18B(1) and 18C(1), where the Singapore cardholder is also a Singapore guarantor, a card issuer shall not permit any amount to be charged to any credit card or charge card issued to the Singapore cardholder, or any credit card or charge card he guarantees —
if that would result in —
the Singapore cardholder’s aggregate outstanding card amount exceeding his maximum credit limit; or
the Singapore cardholder’s total outstanding unsecured amount exceeding his overall credit limit; or
if —
the Singapore cardholder’s aggregate outstanding card amount already exceeds his maximum credit limit; or
the Singapore cardholder’s total outstanding unsecured amount already exceeds his overall credit limit.
Subregulation 3A
Paragraphs (2) and (3) do not apply to a card issuer in respect of a Singapore cardholder for any of the periods specified in paragraph (3B) if, during the period, the card issuer does not permit the Singapore cardholder to charge any further amounts to any credit card or charge card issued by the card issuer to the Singapore cardholder.
Subregulation 3B
The periods referred to in paragraph (3A) are —
the period of 6 months from the date on which a card issuer becomes aware that the income of a Singapore cardholder has decreased, and that as a result of the decrease the Singapore cardholder’s total outstanding unsecured amounts exceeds the Singapore cardholder’s overall credit limit; or
the entire period during which the Singapore cardholder has a debt repayment arrangement with the card issuer to repay the card issuer in instalments.
Subregulation 4
For the purpose of paragraph (3), in determining the total outstanding unsecured amount of the Singapore cardholder, regulation 6(2)(b) shall be read as referring to the aggregate of the following:
the amounts outstanding on any fully unsecured credit card or charge card of which the Singapore cardholder is a guarantor; (b)the amount by which the amount outstanding on any partially secured credit card or charge card of which the Singapore cardholder is a guarantor exceeds the amount of deposit or deposits which the card is secured against.
Subregulation 5
Notwithstanding paragraphs (2) and (3), the credit card or charge card may be charged with any amount if —
the amount being charged represents only fees, interest and charges (including late payment charges) relating to the use of any credit card or charge card issued, or any fully unsecured or partially secured non-card credit facility granted, by the card issuer or any of its affiliated corporations, and included by the card issuer or the affiliated corporation in the aggregate outstanding card amount or the total outstanding unsecured amount, as the case may be; or (b)subject to paragraphs (6) and (7) and regulation 16(2), the Singapore cardholder —
has an annual income of at least $120,000 (or its equivalent in foreign currency);
has financial assets (net of any related liabilities) that exceed $1 million (or its equivalent in foreign currency); or (iii)has total net personal assets that exceed $2 million (or its equivalent in foreign currency).(c)[Deleted by S 319/2015 wef 01/06/2015]
Subregulation 6
Notwithstanding paragraph (5)(b), a card issuer that is a bank in Singapore shall not permit any amount to be charged to a credit card or charge card of a Singapore cardholder referred to in that paragraph if —
the Singapore cardholder is in a director group of the card issuer; and
the charging would result in the Singapore cardholder’s total outstanding unsecured amount exceeding 8 times his monthly income.
Subregulation 7
If the Authority, having regard to the specific circumstances of a card issuer (including whether the credit evaluation and credit risk management practices of the card issuer are sufficiently robust to effectively monitor and manage credit risks), issues to the card issuer a written declaration that paragraph (5)(b) shall no longer apply to the card issuer in relation to any Singapore cardholder to whom the card issuer has issued a credit card or charge card, then that paragraph shall not apply to the card issuer in relation to such Singapore cardholder from the date of receipt of the declaration by the card issuer.
Subregulation 8
[Deleted by S 261/2017 wef 01/06/2017]
Subregulation 8A
[Deleted by S 261/2017 wef 01/06/2017]
Subregulation 9
Any card issuer which contravenes paragraph (2), (3) or (6) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.
Subregulation 10
For the avoidance of doubt, nothing in this regulation shall prevent any card issuer from setting in respect of any credit card or charge card issued to a cardholder, a credit limit lower than the maximum credit limit or the overall credit limit applicable to the cardholder.