State Bank requires review of interest calculation method for each type of card

Illustration photo.

According to the content of Official Dispatch No. 2235/NHNN-TT on the implementation of measures to ensure security and safety in bank card operations issued by the State Bank on March 21, 2024, the State Bank requires credit institutions and foreign bank branches to immediately direct the review of internal procedures on the issuance and use of bank cards to ensure compliance with current legal regulations; at the same time, direct and thoroughly educate officers and employees in the entire system to properly implement the order and procedures for issuing and using bank cards in accordance with legal regulations when issuing cards to customers.

Credit institutions must review to ensure that fees, interest rates, and interest calculation methods for each type of card issued comply with the regulations of the State Bank and relevant laws; at the same time, they must be transparent, provide full information, and have measures to ensure that customers have grasped information about their rights and obligations, fees, interest rates, interest calculation methods (especially for credit cards) and changes (if any) during the process of customers using the card.

In addition, the State Bank requires credit institutions to review the entire process of handling inquiries and complaints in accordance with legal regulations. In case of complaints or feedback from customers during the card usage process, the card issuing organization must handle them in accordance with the process and regulations of relevant laws, ensuring promptness, timeliness and finality, not allowing the case to drag on, affecting the legitimate rights of customers as well as the image and reputation of the card issuing organization.

In case of detecting unusual problems in the use of customers' cards (such as no transactions, long-term overdue debts, etc.) through the control and monitoring process, the card issuer needs to proactively inform the customer and coordinate with relevant parties to take timely measures to ensure that the legitimate rights of customers and card issuers are not affected.

The State Bank also requires credit institutions to implement communication measures to customers (through mass media and communication channels that customers can easily access) about customers' rights and responsibilities in the process of issuing and using bank cards; recommending customers measures to secure personal data and bank card information to avoid the risk of personal information being leaked and card information being used for illegal purposes.

This document was issued after the incident in which customer PHA ( Quang Ninh ) received a notice from Eximbank's Debt Management and Asset Exploitation One Member Limited Liability Company (Eximbank AMC) that it had a credit card debt of VND 8.5 million since 2013, and by 2023 the debt had increased to more than VND 8.8 billion, causing a stir in public opinion. Regarding this case, Mr. Nguyen Ho Hoang Vu, Deputy General Director of Eximbank, said that Eximbank and the customer agreed to handle the case, ensuring a reasonable and fair interest rate for both parties and would notify the media as soon as possible. There is no such thing as the bank collecting VND 8.8 billion.

However, as affirmed by Mr. Vo Minh Tuan, Director of the State Bank of Vietnam, Ho Chi Minh City branch, banking is a business of trust. “This incident will more or less affect the brand and weaken the competitive reputation of the bank. Therefore, banks must pay attention and resolve the customer's story to ensure the interests of both parties,” Mr. Vo Minh Tuan emphasized.

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