September 9, 2009
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News: Singapore Credit Cardholders On The Hook
Singapore officials want to make it very clear that they are being proactive and not reactive as they implement new credit card rules. The Association of Banks in Singapore (ABS) announced new regulations will provide a higher level of protection for cardholders if they become victim of a credit card theft. Previously, Singapore cardholders were responsible for all unauthorized transactions on their cards regardless of the amount prior to reporting it to their lender. New regulations most likely will not be received well by Singapore cardholders. If they become the victim of credit card fraud or act in a negligent manner, they will now be held accountable for 100% of all unauthorized transaction up to the card's limit. On the positive side, the ABS will hold merchants accountable for any fraud due to negligence on their part and appropriate action will be taken if necessary.
Singapore's regulations seem very harsh by other country's standards; including the U.S., UK, and Canada. However, Singapore has one of the lowest incidents of credit card theft in the world. There are approximately 7 million cards in circulation in Singapore and have a mere .02% in fraud. The country's continued success can be accredited to a number of factors. First, their cardholders do a good job at monitoring and tracking their credit card statements which leads to a quick response to reporting lost or stolen cards to their lenders. Singapore banks are also highly focused on deterring card theft; most financial institutions already have security system in place that detects unusual spending behaviors.
Monetary Authority of Singapore also noted that the country's card holders are doing a good job of reducing credit card spending and paying back debt quickly. The country's card debt or the month of July dropped by 3.5% while carried balances dropped 2.8. While low card debt is a good thing for Singapore citizens, lenders face greater challenges marketing their products and increasing earnings. Unlike American citizens, Singapore citizens can expect to see some appealing reward offerings coming their way.