Explainers
 Published Date: 30 May 2017

Ongoing Credit Checks and Requirements

Financial institutions (FIs) must disclose to borrowers how much debt they will accumulate if they haven't paid their prior month's credit card and unsecured credit facilities.

Applies to: Full Bank (Locally Incorporated) , Full Bank (Branch) , Wholesale Bank (Branch) , Finance Company , Merchant Bank (Locally Incorporated) , Merchant Bank (Branch) , Credit/Charge Card Issuer

Disclosure Statements to Borrowers

The disclosure statement lets borrowers see how their debt will accumulate if not paid on time, so they can make informed debt repayment decisions.

It must be sent to borrowers who have not paid the prior month’s bills for credit cards or revolving unsecured credit facilities in full.

What to Include

The disclosure statement should include:

  • The total amount and time needed to fully pay off their debts, if they pay only the minimum payment each month.
  • The amount of debt they would accumulate at the end of 6 months, if they make no payments during that time.
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