Dear Sir,

The article "Didn't apply for credit card? It's yours anyway" (Sunday Times, 12 December 2004) noted that pre-approved cards can only be sent to banks' existing card holders, and that the fees and terms of acceptance be disclosed. However, it failed to mention that under MAS' rules, the cardholder is only liable for amounts charged to the pre-approved card after he accepts the additional card in writing or verbally.  The card issuer cannot hold the cardholder liable for amounts charged to the additional card without this acceptance.  The issuer is also not allowed to extend additional credit beyond that already granted to the cardholder.  The conditions, which must be communicated to the cardholder, are set out in the Banking (Credit Card and Charge Card) Regulations.

2   These requirements safeguard the interest of cardholders, and preserve the existing policy of restricting the aggregate credit card limit granted by a card issuer to an individual to twice the individual's monthly income, regardless of the number of cards issued.

Yours sincerely,

Angelina Fernandez
Director(Communications)