Singapore legislation
Regulation 17
Regulation 17
Cardholders whose cumulative total outstanding unsecured amount exceeds their specified income for 3 consecutive months
Subregulation 1
This regulation shall not apply —
to any Singapore cardholder who, in relation to a card issuer or any of its affiliated corporations —
only holds credit cards or charge cards referred to in section 57G(b) of the Act that are issued by the card issuer or its affiliated corporations; and
has not been granted any fully unsecured or partially secured non-card credit facility (other than the fully unsecured or partially secured non-card credit facilities referred to in regulation 6(9)) by the card issuer or its affiliated corporations; or (b)in relation to any of the following:
a fully secured credit card or charge card;
any corporate card or business card.(c)[Deleted by S 379/2022 wef 14/05/2022]
Subregulation 2
Subject to paragraphs (3A), (4), (5) and (5A) and regulations 18A(1), 18B(1), (2) and (3), 18C(1), (4) and (6) and 23A(6), a card issuer must not —
permit any amount (other than fees, interest and charges (including late payment charges) relating to the use of the card) to be charged to any fully unsecured or partially secured credit card or charge card (other than a guaranteed credit card or guaranteed charge card) issued by the card issuer to a Singapore cardholder whose cumulative total outstanding unsecured amount exceeds his specified income for 3 consecutive months, until the requirements specified in paragraph (6) are fulfilled;
issue any fully unsecured or partially secured credit card or charge card (other than by the sending or giving of a guaranteed credit card or guaranteed charge card, or a credit card or charge card under the circumstances set out in regulation 10(2)) to an individual who is a citizen of Singapore or a permanent resident whose cumulative total outstanding unsecured amount exceeds his specified income for 3 consecutive months; or
increase the aggregate credit limit granted to a Singapore cardholder (save where the increase relates solely to an increase in the credit limit of a guaranteed credit card or guaranteed charge card) whose cumulative total outstanding unsecured amount exceeds his specified income for 3 consecutive months.
Subregulation 3
For the purposes of paragraphs (2), (4), (5) and (6), in determining whether an individual’s cumulative total outstanding unsecured amount has exceeded his specified income for 3 consecutive months, a card issuer may rely on information from one or more credit bureaus (at least one of which must be a licensed credit bureau) indicating that the individual’s cumulative total outstanding unsecured amount for each of 3 consecutive calendar month ends has exceeded his specified income as evidence that the individual’s cumulative total outstanding unsecured amount has exceeded his specified income for 3 consecutive months.
Subregulation 3A
Where a card issuer relies, under paragraph (3), on information from one or more credit bureaus (at least one of which is a licensed credit bureau) as evidence that an individual’s cumulative total outstanding unsecured amount has exceeded the individual’s specified income for 3 consecutive months, the card issuer need only comply with paragraph (2)(a) within a reasonable time after obtaining that information from the licensed credit bureau.
Subregulation 4
Notwithstanding paragraph (2) and subject to regulations 14(6) and 16(2) and (6), a card issuer may, in relation to an individual referred to in paragraph (2), permit any amount to be charged to any fully unsecured or partially secured credit card or charge card issued to the individual, issue any fully unsecured or partially secured credit card or charge card to the individual, or increase the individual’s aggregate credit limit by any amount, even where the individual’s cumulative total outstanding unsecured amount exceeds his specified income for 3 consecutive months, if —
the individual —
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
has total net personal assets that exceed $2 million (or its equivalent in foreign currency); or
the individual’s cumulative total outstanding unsecured amount is reduced to less than his specified income at any time within the 3 months from the first of the 3 consecutive calendar month ends referred to in paragraph (3).
Subregulation 5
Despite paragraph (2), a card issuer may, for the purpose of any loan specified in regulation 6(9) to an individual mentioned in paragraph (2) —
permit any amount to be charged to or drawn down on any fully unsecured or partially secured credit card or charge card issued to the individual;
issue any fully unsecured or partially secured credit card or charge card to the individual; or
increase the individual’s aggregate credit limit by any amount.
Subregulation 5A
Paragraph (2)(b) does not apply to the issue of a supplementary credit card or supplementary charge card to an individual as a supplementary cardholder.
Subregulation 6
Subject to regulations 14 and 16(2), a card issuer may permit an amount to be charged to any fully unsecured or partially secured credit card or charge card it has issued to the Singapore cardholder referred to in paragraph (2)(a) only where —
the Singapore cardholder’s cumulative total outstanding unsecured amount is reduced to less than his specified income; and
for the purpose of assessing the credit-worthiness of the Singapore cardholder, the card issuer —
has or obtains documents to verify the Singapore cardholder’s specified income that are, subject to regulation 23, dated not more than 3 months before the date that the Singapore cardholder is permitted to resume charging amounts to the Singapore cardholder’s credit card or charge card; and
conducts comprehensive checks in accordance with regulation 12(4) with at least one licensed credit bureau (unless such checks have already been conducted not more than one month prior to the date that the Singapore cardholder is permitted to resume charging amounts to his credit card or charge card).
Subregulation 7
For the purposes of this regulation, a card issuer may rely on the latest income data in its records, or obtain income documents from the Singapore cardholder, in determining the income of a Singapore cardholder.
Subregulation 8
Any card issuer which contravenes paragraph (2) or (6) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $25,000.
Subregulation 9
Nothing in this regulation shall prevent a card issuer from transferring any amounts outstanding on any credit card or charge card it has issued, or on any fully unsecured or partially secured credit facility granted, to a Singapore cardholder, to any other credit card or charge card it has issued or will issue, or any fully unsecured or partially secured credit facility it has granted or will grant, to the same cardholder.
Subregulation 10
In this regulation, “specified income”, in relation to a Singapore cardholder, is to be calculated as follows:
during the period from 1 June 2015 to 31 May 2017 (both dates inclusive), 2 times the Singapore cardholder’s annual income;
during the period from 1 June 2017 to 31 May 2019 (both dates inclusive), one and a half times the Singapore cardholder’s annual income; and
for any period on or after 1 June 2019, the Singapore cardholder’s annual income.
Subregulation 11
Despite paragraph (10), with effect from 1 June 2017, the term “specified income” in this regulation in relation to a Singapore cardholder who is above 55 years of age, has an annual income of less than $15,000 and has total net personal assets exceeding $750,000 but not exceeding $2 million (or its equivalent in foreign currency), means —
during the period from 1 June 2017 to 31 May 2019 (both dates inclusive) — $22,500; and
for any period on or after 1 June 2019 — $15,000.