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May 27 2012 11:21
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May 28 2012 07:53
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May 27 2012 13:09
The oversupply of golf estates has claimed another victim.
Johannesburg - FNB's Credit Card Division on Monday advised consumers not to
miss any credit card payments.
"The first sign that indicates that consumers are currently debt
stretched includes defaulting on any credit payments, including
credit card repayments," FNB's Credit Card Division said in a
statement.
"Any form of a missed payment on a credit card raises concern
for the bank," head of credit risk Darryl Lahner said.
"It is under this circumstance that the bank considers
protecting both the customer and the bank by reducing a customer's
credit limit."
Lahner said regular missed payments were a clear indicator that
a customer might be under financial strain.
"It is important for customers to realise that the bank monitors
missed payments regularly."
"These are not limited to credit card repayments, but include
any form of missed payment on any of the other banking products,"
he said.
Lahner stressed that consumers should not view a credit limit
reduction as a form of punishment from the bank.
"Rather, the bank is acting as a responsible lender, by
preventing customers from falling deeper into debt."
Bank's statistics revealed that fewer customers defaulted on
their payments once their credit card limit was reduced.
"Initially customers are not happy, however most customers end
up thanking the bank for the lifeline as it helps in protecting
their credit bureaux profile," Lahner said.
The bank advised customers via SMS about any credit limit
reductions.
"Customers would receive the communication early in the day
avoiding any form of embarrassment at point of sale before using
their cards," he said.
Customers were also encouraged to approach the bank should they
need a credit card limit increase.
"The bank is willing to share and reassess with the customer
concrete reasons considered leading to the credit limit reduction
or increase."
He explained that if consumers were planning an overseas trip,
they could ask for a temporary higher credit limit.
Some consumers might want to limit their exposure to possible
fraud by decreasing their credit limit, he said.
- Sapa