Credit card late payment fees down

Credit card late payment fees for all commercial banks will be reduced from a maximum of RM75 to RM50 beginning July 1.

At the same time, the minimum fee for late payment charges will be reduced to RM5 or 1% of the total balance outstanding at statement date, whichever is higher, up to a new maximum of RM50.

The Association of Banks said cardholders would also be given a minimum three-day grace period from the due date of their statement to pay, during which no late payment fees would be imposed.

Executive director Chuah Mei Lin said the move was another step to provide bank customers with more flexibility in managing their credit cards.

“The provision of the grace period does not detract from the underlying principle of prompt and disciplined payment.

“Habitual late-payers hoping to pay just before or after the expiry of the grace period will be disappointed,” she emphasised, stressing the need for them to better manage their personal finances.

Currently, not all banks observe the provision of a grace period while the policy for those which do differs from one institution to the other.

These new provisions follow reductions in credit card tiered interest rates and late payment fees announced earlier.

- THE STAR