Bank Islam Brunei Darussalam has begun offering a personal finance service for accountholders who directly deposit their payroll funds. Under the Credit Card Care Program, the bank will consolidate card accounts for customers who have several credit cards.
If a customer has three cards with BN$1000 (US$706 or 522 euros) on three cards, for example, the bank will consolidate the debt into one amount the customer can repay over a three-year repayment schedule, an official from the bank explains.
“This would convert the debt to something like a finance scheme,” he adds. “And unlike credit cards, customers in this plan would pay only an annual percentage rate of 5.75%.”Credit card rates can range from 24% to 48%, he says.
Bank Islam Brunei will settle the outstanding debt with the other issuers, the official adds. “What the customers get is a single facility, and we would also give them a credit card,” he says. “All that he needs to do is transfer his payroll account to [Bank Islam Brunei] in compliance with the Ministry of Finance’s new regulations.”
In January, the Ministry of Finance of Brunei set restrictions on the monthly minimum amounts credit card issuers may set (see story) (
Additionally, consumers may receive a credit card only from the bank with which they hold another account, the ministry said.
