Central bank orders tighter control over credit card payments
Central bank orders tighter control over credit card payments
The State Bank of Vietnam (SBV) has asked commercial banks to tighten control over credit card payments to prevent the improper use of credit cards.
Bank staff have consulted with many credit card holders, allowing them to borrow consumer loans at an interest rate of 1.69% per month or 20.28% per year.
Credit card holders need only ask their banks to transfer money from their credit cards to other bank accounts, including accounts in competing banks, to withdraw cash and pay the principal and interest in 12, 15, 18, 21 or 24 months, the local media reported.
In addition, some units accepting credit card payments have collaborated with cardholders to conduct virtual transactions to withdraw cash.
To prevent these problems, SBV has asked commercial banks to review transactions and terminate contracts with customers suspected of using their credit cards for improper purposes.
Banks should review contracts with units accepting credit card payments and supplement requirements on the use of credit cards, as well as work out solutions to supervise, inspect, manage and address violations by these units.
Also, criteria for choosing units that can accept credit card payments should be created.
Members of the Vietnam Bank Association need to update their information on the illegal use of bank cards.
If banks detect violations by units accepting credit card payments, they must report these violations to the SBV and the Vietnam Bank Association.
The central bank also asked units accepting credit card payments and cardholders to comply with regulations on bank cards.
