萬國法律事務所

The Financial Supervisory Commission recently announced that the Consumer Protection Commission (CPC) will amend the Standard Form Contract for Credit Card to incorporate certain pro-cardholder measures. The measures will include the decrease of administration fees, including imposing a cap of NTD200 on credit card replacement fee after reported loss, an 80% decrease from the current fee of NTD1000 customarily charged by financial institutions, and the processing fees for purchases made abroad will be lowered from the current 2.05% to 2.2% to 1.5%.

In addition, where cardholders cancel a credit card after the issuing institution modifies the contract (for instance, to revoke certain benefits), the cardholders must be granted at least six months payment buffer to repay the remaining balance or installment payments. Under the current system, cardholders are required to pay off the remaining balance and installment payments upon cancellation of the credit card. Furthermore, in the case where the interest rate of a credit card is adjusted, for the existing balance, the previous interest rate applicable at the time of the purchase will prevail.

The new measures will be effective on October 27, 2010, except for the changes on the calculation of interest rates. The latter measures will require greater adjustment to the current banking systems and will be effective in April 2011.