CREDIT CARDS
MAS rule unfair to seniors
RECENTLY I complained to Maybank after it declined my credit card application, which requires a minimum qualifying income of $30,000, and copied my complaint to the Monetary Authority of Singapore (MAS).
While I had substantial unencumbered fixed deposits in that bank, they wanted me to collateralise my credit card limit, which I declined.
I am a 59-year-old retiree who held a senior position in a bank before I retired. I am debt-free, I have no bad credit record, and I own a few properties which are free of encumbrances. Despite the above, I cannot qualify for a credit card simply because MAS requires a minimum qualifying income.
My income tax returns show that I have been paying income tax regularly and without fail.
My regular 'income' is no longer derived from a salary, but from rental income, dividends, interest income, capital gains from share investments, director's fees and so on.
Yet all these do not qualify as eligible 'qualifying' income to the bank and MAS. Those who can voluntarily retire at age 62 or earlier are mostly financially independent, prudent and conservative in managing their personal finances over time.
Such retirees are excellent credit risk for banks, so why are banks and MAS not customising their risk profiling of these older people differently, instead of applying the traditional debt servicing criteria?
They are losing a golden opportunity to expand business to this growing group of well-heeled retirees who may not be super-rich, but are considering investments, spending money travelling, buying expensive goods, cars and so on. My problem is not unique.
Lending banks could get a personal net-worth statement from me, do a historical credit profiling of my person, and check with a local credit agency on my credit history, for instance, to support my wish for a credit card or other credit facilities.
It is time for the banks and MAS to think outside the box if they believe that ours is a progressive and international financial centre.
Raymond Koh Bock Swi
http://www.straitstimes.com/STForum/Story/STIStory_716044.html
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