Standard Bank Ltd. in South Africa is slashing the minimum monthly repayment rate across all its credit cards to help customers manage their expenses more efficiently, the issuer announced August 11.
Effective Aug. 25, cardholders must pay at least 3% of their balance owed each month, down from 5% currently, according to a customer service representative at the Johannesburg-based bank.
Standard plans to readjust orders for cardholders who have an automatic repayment system set up for payment of their card balances based on the 5% rate.
Though the representative was unable to say specifically why the issuer cut the minimum-payment rate, Standard Bank Group CEO Jack Maree during an Aug. 11 earnings call said an improvement in the credit profile of the card base made the change possible.
Leila Fourie, Standard Bank card director, told local media before the call that the 3% minimum repayment would enable distressed customers, who are paying less than 5% per month as part of a restructure arrangement, to move from nonperforming to performing status with the issuer.
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