Financial regulators in Brunei have set restrictions on how small the amounts credit card issuers can set for monthly repayment of credit card debts, according to a directive from the country’s Ministry of Finance. Cardholder incomes also now will determine credit card spending limits, the directive states.
Government officials say the moves will help reduce card debt in the country, according to press reports. The ministry did not respond to a request for comment.
Starting in March, issuers in Brunei must require cardholders to pay back at least 5% of their card bills monthly. The rate increases to 8% in June. Banks now set their own limits for monthly repayments.
Additionally, consumers may receive a credit card only from the bank with which they hold another account, the ministry says.