SERVING THE PUBLIC,

ENGAGING STAKEHOLDERS

PROTECTING CONSUMERS
ENCOURAGING PRUDENT BORROWING AND LENDING BEHAVIOUR

Implementation of Unsecured Credit Rules
To ensure sound underwriting based on a realistic assessment of an individual's repayment capacity, financial institutions are required to review a borrower's credit record before they can issue new credit cards or unsecured credit facilities, or increase credit limits on existing facilities. The review covers the borrower's total outstanding balances and credit limits of loans across all financial institutions.

In addition, financial institutions will need to ask borrowers for their preferred credit limits when borrowers apply for new facilities. They are also required to obtain a borrower's consent in writing before granting any credit limit increase. These measures help to empower borrowers with greater control over the use of their unsecured credit facilities and credit limits.

Enhanced Credit Information in the Credit Bureaus
To facilitate implementation of the new unsecured credit rules, MAS worked closely with the consumer credit bureaus to enhance the credit information they collect. Since June 2014, members of the credit bureaus have been contributing information on their customers' outstanding debt balances and credit limits to the credit bureaus. Financial institutions can access the information when they conduct credit bureau checks on a borrower. Consumers can purchase their personal credit report from the bureaus to check on their overall level of indebtedness. The enhanced information empowers both borrowers and financial institutions to make better borrowing and lending decisions.