Brunei Battles Credit Card Debt With Tighter Rules

Financial regulators in Brunei have placed restrictions on how small the amounts credit card issuers can set for monthly repayment of credit card debts, according to a directive from the country’s Ministry of Finance. Cardholder incomes also will determine credit card spending limits, the directive states.

Government officials say the moves will help reduce card debt in the country, according to press reports. The ministry did not respond to a request for comment. Brunei is located on the northwestern edge of the island of Borneo, which is also a part of Indonesia and Malaysia.

Starting in March, issuers in Brunei must require cardholders to pay back at least 5% of their card bills monthly. The rate increases to 8% in June. Banks now set their own limits for monthly repayments.
Additionally, consumers may receive a credit card only from the bank with which they hold another account, the ministry says.