Answer by Mr Alvin Tan, Minister of State, Ministry of Trade and Industry and Ministry of Culture, Community and Youth, and Board member of MAS, on behalf of Mr Tharman Shanmugaratnam, Senior Minister and Minister in charge of MAS:

1 Fees charged by banks for their services and products are commercial decisions. MAS does not interfere in these decisions, but expects all banks to deal fairly with their customers.

2 In this regard, MAS requires banks to clearly and conspicuously disclose late payment fees and interest charges in credit card statements, including how such charges are computed. These are the most significant potential charges for credit card users. Where a customer has not paid the prior month’s credit card bill in full, the bank is required to provide in the current month’s statement a projection of the length of time and the total amount, including principal, interest, fees and charges, that the customer will take to fully pay off the entire outstanding balance.

3 The Association of Banks in Singapore’s Code of Consumer Banking Practice further specifies when and how banks can effectively communicate to customers, relevant information on a broader range of principal terms and conditions, including annual fees, repayment grace periods, and interest rates. For example, this code sets out disclosure standards for specific consumer engagement touchpoints such as when marketing credit cards, when cards are dispatched to customers, and in monthly statements.

4 With transparent credit card fees and charges, consumers can make an informed choice on the product that best suits their needs.

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