No non-transactional fees on credit cards before activation: BB

If an active credit card has no transactional liability, no penalties other than non-transactional fees may be imposed

TBS Report

February 15, 2022, 10:35 p.m.

Last modification: February 15, 2022, 10:37 p.m.

Credit Card File Photo/Collected

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Credit Card File Photo/Collected

Bangladesh Bank has asked banks not to charge credit card holders non-transaction fees before activating their cards.

Non-transaction fees can only be charged after a customer activates a credit card, the central bank said in a guideline issued Tuesday for banks.

If an active credit card has no liability related to transactions made by the customer, no penalties other than a non-transactional fee can be imposed, the central bank said.

In addition, banks must remove credit card holders, who have not made any transactions but have been classified as defaulters due to unpaid non-transaction charges, from the list of defaulters.

However, if a customer’s credit card transaction liabilities are not settled on time, they may be classified as a loan defaulter in accordance with relevant policies.

“Guidelines already exist for credit card withdrawals and the collection of late fees. But, recently, it has been noticed that banks are charging various non-transactional fees [annual fee, CIB fee, SMS fee] before cardholders activate the cards and be considered defaulted if they do not pay it,” the central bank said in the directive.

“It creates confusion and causes various problems for customers,” he added.