PART I | Citation and commencement |
| 1. These Regulations may be cited as the Banking (Credit Card and Charge Card) Regulations 2013 and shall come into operation on 1st December 2013. |
2. In these Regulations, unless the context otherwise requires —“affiliated corporation”, in relation to a card issuer or financial institution, means any of the following:| (a) | a related corporation of the card issuer or financial institution, as the case may be, that is incorporated in Singapore; | | (b) | where the card issuer or financial institution, as the case may be, has a related corporation that is incorporated outside Singapore —| (i) | any branch or office of the related corporation that is located in Singapore; or | | (ii) | such branch or office of the related corporation that is located outside Singapore as may be designated by the Authority by notice in writing to the card issuer or financial institution; |
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“business card” means a credit card or charge card issued to —| (a) | a sole proprietor; | | (b) | a partner of a partnership, other than a limited liability partnership; or | | (c) | an employee of a sole proprietor or any such partnership, |
| where, under the terms of use of the credit card or charge card, the sole proprietor or partnership bears sole liability, or joint and several liability with the cardholder, for — |
| (i) | any amount charged to the credit card or charge card; or | | (ii) | any amount charged to the credit card or charge card for the purposes of the business of the sole proprietor or partnership, |
| (A) | a credit card or charge card where the employee or partner is solely liable for any amount charged to the credit card or charge card; | | (B) | a corporate purchasing card; or | | (C) | a credit card or charge card which was applied for on the basis that it was not for any business purpose; |
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| “business card with no personal liability” means a business card issued to an employee of a sole proprietor or partnership (other than a limited liability partnership) where, under the terms of use of the business card, the sole proprietor or partnership bears sole liability for any amount charged to the business card; |
| “cardholder” means an individual who has been issued a credit card or charge card, or a supplementary credit card or supplementary charge card; |
| “card issuer” means any person carrying on a business of issuing credit cards or charge cards in Singapore; |
“corporate card” means a credit card or charge card issued to an employee or officer (being a director, member of the committee of management, chief executive, manager, secretary or other similar officer) of a body corporate where, under the terms of use of the credit card or charge card, the body corporate bears sole liability, or joint and several liability with the cardholder, for —| (a) | any amount charged to the credit card or charge card; or | | (b) | any amount charged to the credit card or charge card for the purposes of the business of the body corporate, |
| (i) | a credit card or charge card where the employee or officer is solely liable for any amount charged to the credit card or charge card; or | | (ii) | a corporate purchasing card; |
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| “corporate card with no personal liability” means a corporate card issued to an employee or officer (being a director, member of the committee of management, chief executive, manager, secretary or other similar officer) of a body corporate where, under the terms of use of the corporate card, the body corporate bears sole liability for any amount charged to the corporate card; |
| “corporate purchasing card” means a credit card or charge card issued for the purpose of purchasing goods or services, other than services for entertainment purposes, on behalf of a body corporate, a partnership or a sole proprietor, where the body corporate, partnership or sole proprietor bears sole liability for all amounts charged to the credit card or charge card; |
| “credit card” or “charge card” has the same meaning as in section 56 of the Act but excludes any credit card or charge card referred to in section 57G(a) or (c) of the Act; |
| “deposit”, in relation to a finance company, has the same meaning as in section 2 of the Finance Companies Act (Cap. 108); |
| “direct insurer” has the same meaning as in section 1A of the Insurance Act (Cap. 142); |
| “director group” has the same meaning as in paragraph 1 of the Fifth Schedule to the Act; |
| “emoluments”, in relation to an individual, means the salary and bonuses of the individual but does not include any allowances; |
| “excluded employee”, in relation to a direct insurer, means an insurance agent who has entered into an agreement in writing with the direct insurer to arrange, as agent for the direct insurer, any contract of insurance; |
| “finance company” has the same meaning as in section 2 of the Finance Companies Act; |
| “financial institution” means any person who is licensed, approved, registered or otherwise regulated by the Authority under any written law; |
| “guaranteed charge card” means a charge card, other than a charge card referred to in section 57G(b) of the Act, that is guaranteed by a guarantor; |
| “guaranteed credit card” means a credit card, other than a credit card referred to in section 57G(b) of the Act, that is guaranteed by a guarantor; |
| “guarantor” means an individual who guarantees the repayment of all amounts charged to or outstanding on a credit card or charge card; |
| “IRAS” means the Inland Revenue Authority of Singapore established under section 3 of the Inland Revenue Authority of Singapore Act (Cap. 138A); |
| “lender” means a financial institution or any of its affiliated corporations which issues a credit card or a charge card, or grants a non-card credit facility, to a person; |
| “medical treatment” has the same meaning as in regulation 2 of the Central Provident Fund (MediShield Scheme) Regulations (Cap. 36, Rg 20); |
| “merchant bank” means a merchant bank approved under section 28 of the Monetary Authority of Singapore Act (Cap. 186); |
“non-card credit facility” means —| (a) | any advance, loan or other facility granted by a lender to a customer whereby the customer has access to any funds or financial guarantee provided by the lender; or | | (b) | any other liability incurred by a lender on behalf of a customer of the lender, |
| other than by way of issue of a credit card or charge card by the lender or in relation to a credit card or charge card issued by the lender; |
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| “permanent resident” means any individual who is not subject to any restriction as to his period of residence in Singapore imposed under the provisions of any written law relating to immigration for the time being in force; |
| “principal cardholder” means the cardholder under whose credit card or charge card any supplementary credit card or charge card has been issued; |
| “purchase rate” means the interest rate which applies to credit granted for the purchase of goods and services using a credit card or charge card, as specified under the terms of use of the credit card or charge card agreement between a cardholder and a card issuer; |
| “share” has the same meaning as in section 4(1) of the Companies Act (Cap. 50); |
| “Singapore cardholder” means a cardholder who is a citizen of Singapore or a permanent resident, and does not include the holder of a supplementary credit card or supplementary charge card in his capacity as a supplementary cardholder; |
| “Singapore guarantor” means a guarantor who is a citizen of Singapore or a permanent resident. |
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| References in relation to credit cards or charge cards |
3.—(1) For the purposes of these Regulations, a reference to a fully secured credit card or charge card is a reference to a credit card or charge card where —| (a) | the card issuer of the credit card or charge card is a bank, merchant bank or finance company; | | (b) | the amount of any deposit or the total amount of deposits placed with the card issuer in the name of the principal cardholder, or the cardholder (if no supplementary credit card or supplementary charge card is issued) —| (i) | is not less than $10,000 at the time of the application for the principal card or card, as the case may be; and | | (ii) | is not at any time during the period the cardholder holds the principal card or card, as the case may be, less than the higher of the following:| (A) | $10,000; | | (B) | the amount (save for any fees, interest and charges, including late payment charges, relating to the use of the principal card and all supplementary cards as may have been issued under that card, or the card, as the case may be) that is outstanding on all such cards or card; and |
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| | (c) | there is an agreement allowing for the set-off of the amount that is outstanding on the principal card and all supplementary cards as may have been issued under that card, or the card, as the case may be, against the deposit or deposits. |
(2) For the purposes of these Regulations, a reference to a partially secured credit card or charge card is a reference to a credit card or charge card where —| (a) | the card issuer thereof is a bank, merchant bank or finance company; | | (b) | the amount of any deposit or the total amount of deposits placed with the card issuer in the name of the principal cardholder, or the cardholder (if no supplementary credit card or charge card is issued) —| (i) | is not less than $10,000 at the time of the application for the principal card or card, as the case may be; | | (ii) | is not at any time during the period the cardholder holds the principal card or card, as the case may be, less than $10,000; and | | (iii) | may at any time during the period the cardholder holds the principal card or card, as the case may be, be less than the amount (save for any fees, interest and charges, including late payment charges, relating to the use of the principal card and all supplementary cards as may have been issued under that card, or the card, as the case may be) that is outstanding on such cards or card; and |
| | (c) | there is an agreement allowing for the set-off of the amount that is outstanding on the principal card and all supplementary cards as may have been issued under that card, or the card, as the case may be, against the deposit or deposits. |
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| References in relation to non-card credit facilities |
4.—(1) For the purposes of these Regulations, a reference to a fully secured non-card credit facility is a reference to a non-card credit facility where, at the time the facility is given, the specified value of the assets against which the facility is secured is not less than the amount of the credit granted by the lender under the facility.| (2) For the purposes of these Regulations, a reference to a partially secured non-card credit facility is a reference to a non-card credit facility where, at the time the facility is given, the specified value of the assets against which the facility is secured is less than the amount of the credit granted by the lender under the facility. |
| (3) For the purposes of these Regulations, a reference to a fully unsecured non-card credit facility is a reference to a non-card credit facility given without any security. |
(4) In this regulation, “specified value”, in relation to assets, means —| (a) | the market value of the assets; or | | (b) | where there is no established market value of the assets referred to in sub-paragraph (a), such other value as may be approved by the Authority; and if at the material time no other value is approved by the Authority, the assets shall be treated as being of no value. |
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| References in relation to credit limits |
5.—(1) For the purposes of these Regulations, a reference to the aggregate credit limit of an individual with a card issuer is a reference to the aggregate of all of the following amounts:| (a) | the sum of the credit limits of all credit cards issued to the individual by the card issuer and of all supplementary credit cards as may have been issued under all such credit cards; | | (b) | the sum of the credit limits of all charge cards issued to the individual by the card issuer and of all supplementary charge cards as may have been issued under all such charge cards; | | (c) | the sum of the credit limits of all fully unsecured non-card credit facilities granted to the individual by the card issuer; | | (d) | the sum of the credit limits of all partially secured non-card credit facilities granted to the individual by the card issuer. |
(2) For the purposes of these Regulations, a reference to the maximum credit limit of a Singapore cardholder with a card issuer is a reference to an amount not exceeding —| (a) | in a case where the Singapore cardholder only holds fully unsecured or partially secured credit cards or charge cards issued by the card issuer, his overall credit limit; | | (b) | in a case where the Singapore cardholder only holds fully secured credit cards or charge cards issued by the card issuer, the amount of the deposit or deposits in the name of the Singapore cardholder which secure the credit limits of the credit cards or charge cards; and | | (c) | in a case where the Singapore cardholder holds both fully secured credit cards or charge cards, and fully unsecured or partially secured credit cards or charge cards, all issued by the same card issuer, the higher of the following amounts:| (i) | the Singapore cardholder’s overall credit limit; | | (ii) | the amount of the deposit or deposits in the name of the Singapore cardholder which secure all the fully secured credit cards or charge cards referred to in this sub‑paragraph. |
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(3) In these Regulations, “overall credit limit”, in relation to a Singapore cardholder, means —| (a) | where the annual income of the Singapore cardholder is less than $30,000, 2 times his monthly income; and | | (b) | where the annual income of the Singapore cardholder is $30,000 or more, 4 times his monthly income. |
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| References to amounts outstanding |
6.—(1) For the purposes of these Regulations, a reference to the aggregate outstanding card amount of a Singapore cardholder with a card issuer is a reference to the aggregate of all of the following amounts:| (a) | the sum of all amounts outstanding on —| (i) | all credit cards and charge cards (other than guaranteed credit cards, guaranteed charge cards, corporate cards and business cards) issued to the Singapore cardholder by the card issuer or any of its affiliated corporations; and | | (ii) | all supplementary credit cards and supplementary charge cards issued under any credit card or charge card referred to in sub-paragraph (i); and |
| | (b) | where the Singapore cardholder is also a Singapore guarantor for one or more guaranteed credit cards or guaranteed charge cards issued by the card issuer or any of its affiliated corporations, the sum of all amounts outstanding on such guaranteed credit cards and guaranteed charge cards. |
(2) For the purposes of these Regulations, a reference to the total outstanding unsecured amount of a Singapore cardholder with a card issuer is a reference to the aggregate of all of the following amounts:| (a) | the sum of all amounts outstanding on —| (i) | all fully unsecured or partially secured credit cards and charge cards (other than guaranteed credit cards, guaranteed charge cards, corporate cards and business cards) issued to the Singapore cardholder by the card issuer or any of its affiliated corporations; | | (ii) | all supplementary credit cards and supplementary charge cards issued under any credit card or charge card referred to in sub-paragraph (i); |
| | (b) | where the Singapore cardholder is also a Singapore guarantor for one or more fully unsecured or partially secured guaranteed credit cards or guaranteed charge cards issued by the card issuer or any of its affiliated corporations, the sum of all amounts outstanding on such guaranteed credit cards and guaranteed charge cards; | | (c) | the sum of all amounts outstanding on all fully unsecured or partially secured non-card credit facilities (other than the loans referred to in paragraph (9)) granted to the Singapore cardholder by the card issuer or any of its affiliated corporations. |
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| (3) For the purposes of paragraphs (2)(a) and (b) and (8)(b) and regulation 23(4), the amounts outstanding on a partially secured credit card or charge card is the amount by which the amount outstanding on the card exceeds the amount of deposit or deposits against which the card is secured. |
(4) For the purposes of paragraphs (2)(c) and (9)(i)(ii)(B) and regulation 23(4), the amounts outstanding on a partially secured non‑card credit facility is the amount by which the amount outstanding on the facility exceeds the value of the assets against which the facility is secured, being —| (a) | the latest market value of the assets documented in the lender’s records; or | | (b) | where such latest market value is not available —| (i) | the market value of the assets at the time the facility was given; or | | (ii) | where there was no established market value of the assets referred to in sub-paragraph (i), the value approved by the Authority under regulation 4(4)(b). |
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| (5) For the purposes of paragraphs (2)(c) and (8)(a), where a non‑card credit facility is granted jointly to an individual and one or more other persons, the individual’s amounts outstanding shall be derived by dividing the outstanding balance of the joint facility by the number of persons to whom the facility was granted. |
(6) For the purpose of determining the aggregate outstanding card amount and total outstanding unsecured amount of a Singapore cardholder —| (a) | a reference to a credit card or charge card issued by a card issuer shall include a credit card or charge card issued by another card issuer with whom the first-mentioned card issuer merges or consolidates, or whose business (in respect of the issue of credit cards and charge cards) the first‑mentioned card issuer acquires; and | | (b) | a reference to a fully unsecured or partially secured non‑card credit facility granted by a card issuer or any of its affiliated corporations includes a fully unsecured or partially secured non-card credit facility granted by another person with whom the card issuer or its affiliated corporation, as the case may be, merges or consolidates, or whose business (in respect of the granting of fully unsecured or partially secured non-card credit facilities) the card issuer or its affiliated corporation, as the case may be, acquires. |
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| (7) For the purposes of these Regulations, a reference to the cumulative total outstanding unsecured amount of a Singapore cardholder is a reference to the sum of all total outstanding unsecured amounts of the Singapore cardholder with every lender which has issued any credit card or charge card, or granted any non-card credit facilities, to the Singapore cardholder. |
(8) For the purpose of determining the cumulative total outstanding unsecured amount of a Singapore cardholder, the following may be excluded:| (a) | the amount of any loans specified in paragraph (9) that are granted to the Singapore cardholder by any lender; | | (b) | where the Singapore cardholder is also a Singapore guarantor for one or more fully unsecured or partially secured guaranteed credit cards or guaranteed charge cards, up to 80% of the total amounts outstanding on all those guaranteed credit cards and guaranteed charge cards; | | (c) | annual fees in respect of fully unsecured or partially secured credit cards and charge cards issued, and fully unsecured or partially secured non-card credit facilities granted, by any lender to the Singapore cardholder; | | (d) | any transaction, fees, interest and charges (including late payment charges) in respect of which the Singapore cardholder has raised a dispute with the lender which charged the transaction or which imposed the fees, interest or charges; | | (e) | any fees, interest and charges charged on —| (i) | the annual fees referred to in sub-paragraph (c); and | | (ii) | any transaction, fees, interest and charges referred to in sub-paragraph (d); and |
| | (f) | amounts outstanding which accrue interest at an effective interest rate of zero. |
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(9) The loans for the purposes of paragraphs (2)(c) and (8)(a) are loans for any of the following purposes:| (a) | the furnishing of any security to the Government in connection with any application for the deferment of any liability under the Enlistment Act (Cap. 93); | | (b) | the furnishing of any security to the Government in connection with the employment of a foreign domestic worker; | | (c) | the defraying of expenses which are directly attributable to a course of education, including tuition fees and the costs of accommodation, textbooks and computer equipment, where the lender who granted the loan has taken reasonable steps to ascertain that the proceeds of the loan will be applied only towards the defraying of such expenses; | | (d) | the business of a sole proprietor or partnership (other than a limited liability partnership) of which the Singapore cardholder is the sole proprietor or a partner, as the case may be; | | (e) | the repayment of any amount owing by the Singapore cardholder under another non-card credit facility which has ceased to be fully secured as a result of a fall in the value of the security given for that facility, where the lender who granted the loan has taken reasonable steps to ensure that the proceeds of the loan are paid to the person who granted that facility; | | (f) | any renovation (the loan being referred to in this sub‑paragraph as a renovation loan), where —| (i) | the lender who granted the renovation loan has taken reasonable steps to ascertain that the proceeds of the renovation loan will only be applied towards the defraying of the costs of renovations which have been made or will be made; | | (ii) | the renovation loan repayment period does not exceed 5 years; | | (iii) | in the case of a renovation loan granted jointly to the Singapore cardholder and one or more other persons (referred to in this sub-paragraph as a joint renovation loan), that other person or each of those other persons is —| (A) | a spouse, child, parent or sibling of the Singapore cardholder; or | | (B) | a fiancé or fiancée of the Singapore cardholder, as the case may be, and the Singapore cardholder has provided or agreed to provide a copy of his marriage certificate to the lender not more than 3 months after the first disbursement of the renovation loan; and |
| | (iv) | the aggregate of the following (save for any fees, interest or charges (including late payment charges) imposed by the lender who granted the loan) is not more than 6 months’ income of the Singapore cardholder or $30,000, whichever is the lower:| (A) | the amount of the renovation loan, or the amount of the Singapore cardholder’s share of the joint renovation loan (derived by dividing the amount of that loan by the number of persons to whom the loan is granted), as the case may be; | | (B) | the sum of all amounts outstanding on both of the following:| (BA) | all earlier renovation loans granted to the Singapore cardholder by the same lender; | | (BB) | the Singapore cardholder’s share of all earlier joint renovation loans granted by the same lender (derived in respect of each such loan by dividing the outstanding balance on that loan by the number of persons to whom that loan was granted); |
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| | (g) | the defraying of the costs of any medical treatment, where the lender who granted the loan has taken reasonable steps to ascertain that the proceeds of the loan will be applied only towards the defraying of such costs; | | (h) | the subscription of shares (the loan being referred to in this sub-paragraph as a share financing loan), where —| (i) | the aggregate of the following does not exceed 80% of the amount to be paid by the Singapore cardholder for the subscription of those shares:| (A) | the amount of the share financing loan granted by the lender or, where part of the loan may be used for a purpose other than the subscription of those shares, the amount of the loan which is to be used for the subscription of those shares; | | (B) | all other loans obtained by the Singapore cardholder from any other person for the subscription of those shares or, where part of the loans may be used for a purpose other than for the subscription of those shares, the amounts of the loans which are to be used for the subscription of those shares; | | (C) | all the discounts, rebates and other benefits granted by any person to the Singapore cardholder in relation to the subscription of those shares; and |
| | (ii) | the lender referred to in sub-paragraph (i)(A) has taken reasonable steps to ensure that sub‑paragraph (i) is complied with, including obtaining a written declaration from the Singapore cardholder as to both of the following:| (A) | whether the Singapore cardholder has obtained any loan from any other person for the subscription of those shares, the amount of such loan (and where part of the loan is to be used for purposes other than the subscription of those shares, the amount of the loan which is to be used for the subscription of those shares) and other relevant details of such loan; | | (B) | whether the Singapore cardholder has received any discount, rebate or other benefit from any other person in relation to the subscription of those shares, and the amount and other details of such discount, rebate or benefit; |
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| | (i) | any purpose where the loan is made to the Singapore cardholder in his capacity as an officer (other than a director) or employee (other than an excluded employee of a direct insurer) of the lender (other than a finance company) granting the loan, where —| (i) | the duration of employment as set out in the contract of employment of the Singapore cardholder is for at least one continuous year or, where the duration of employment is less than one continuous year, the terms of the contract allow for the duration of employment to be extended beyond one year; and | | (ii) | the aggregate of the following is not more than one year’s emoluments of the Singapore cardholder:| (A) | the loan amount (other than in relation to loans granted for any of the purposes specified in sub-paragraphs (a) to (h)); | | (B) | the aggregate of the amounts outstanding on all earlier fully unsecured or partially secured non‑card credit facilities (other than in relation to loans granted for any of the purposes specified in sub-paragraphs (a) to (h)) granted by way of a loan or loans by the lender to the Singapore cardholder, in his capacity as an officer or employee of the lender; | | (C) | the total outstanding unsecured amount of the Singapore cardholder with the lender. |
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(10) For the avoidance of doubt —| (a) | where the aggregate of the amounts referred to in paragraph (9)(h)(i) exceeds 80% of the amount to be paid by the Singapore cardholder for the subscription of the shares, then the entire amount of the share financing loan for the subscription of those shares referred to in paragraph (9)(h)(i)(A) shall be included in determining the total outstanding unsecured amount or cumulative total outstanding unsecured amount of the Singapore cardholder; and | | (b) | where the aggregate of the amounts referred to in paragraph (9)(i)(ii) exceeds one year’s emoluments of the Singapore cardholder as an officer or employee of the lender, the total of sub-paragraphs (A), (B) and (C) of paragraph (9)(i)(ii) shall be included in determining the total outstanding unsecured amount or cumulative total outstanding unsecured amount of the Singapore cardholder. |
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| Application of these Regulations |
7. These Regulations shall not apply to any of the following:| (a) | any corporate purchasing card; | | (b) | any corporate card with no personal liability; | | (c) | any business card with no personal liability. |
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