The Hong Kong Monetary Authority (HKMA) released today (15 January 2001) a finalised set of recommendations aimed at improving business practices in relation to card services. This set of recommended practices was formulated by the Informal Working Group (IWG) on review of the Code of Banking Practice convened by the HKMA and comprising representatives of the Hong Kong Association of Banks and the DTC Association.
The IWG believes that these recommended practices will help make the terms and conditions for card services fairer, more transparent and more consumer-friendly.
In finalising the recommendations, the IWG has taken into account comments received from the industry associations and the Consumer Council. The recommendations do not differ from the draft recommendations released for consultation in October 2000 in any significant way.
The following recaps the major recommended practices:
Authorised institutions should adopt these recommended practices as quickly as practicable, and should achieve compliance within 6 months. A further 6 months will be allowed for compliance with the recommended practice regarding liability of supplementary cardholders, which may involve system changes.
The IWG continues to work on reviewing other aspects of the Code and hopes to release further papers for consultation shortly.
The full version of the finalised set of recommendations on credit card practices is available on the HKMA website (http://www.hkma.gov.hk).
For further enquiries, please contact:
Jasmin Fung, Manager (Press), at 2878 8246 or
Thomas Chan, Senior Manager (Press), at 2878 1480
Hong Kong Monetary Authority
15 January 2001
Annex
Code of Banking Practice (Chapter 3)
Annex of Code of Banking Practice (Chapter 3)
Calculation of Annualised Percentage Rate of Interest in relation to Credit Card Products