State Bank requires review of interest calculation method for each type of card

Illustrative image.

According to Circular 2235/NHNN-TT on the implementation of security and safety measures in bank card operations issued by the State Bank of Vietnam on March 21, 2024, the State Bank of Vietnam requires credit institutions and branches of foreign banks to immediately review internal procedures for issuing and using bank cards to ensure compliance with current legal regulations; and at the same time, instruct and ensure that all staff throughout the system follow the correct procedures for issuing and using bank cards in accordance with the law when issuing cards to customers.

Credit institutions must review to ensure that fees, interest rates, and interest calculation methods for each type of card issued comply with the regulations of the State Bank and relevant laws; at the same time, they must be transparent, provide full information, and have measures to ensure that customers have grasped information about their rights and obligations, fees, interest rates, interest calculation methods (especially for credit cards) and changes (if any) during the process of customers using the card.

Furthermore, the State Bank of Vietnam requires credit institutions to review all procedures for handling inquiries and complaints in accordance with legal regulations. In case of complaints or feedback from customers during card usage, the card issuer must handle them according to the procedures and relevant legal regulations, ensuring prompt, timely, and decisive action, preventing the matter from dragging on and affecting the legitimate rights of customers as well as the image and reputation of the card issuer.

In the event that irregularities are detected in the customer's card usage (such as no transactions, prolonged overdue debt, etc.) through the control and monitoring process, the card issuer must proactively inform the customer and coordinate with relevant parties to take timely corrective measures to ensure that the legitimate rights of both the customer and the card issuer are not affected.

The State Bank of Vietnam also requires credit institutions to implement communication measures to inform customers (through mass media and easily accessible communication channels) about their rights and responsibilities during the issuance and use of bank cards; and to advise customers on measures to protect personal data and bank card information to avoid the risk of leakage of personal information and card information used for illegal purposes.

This official letter was issued after a customer named PHA ( Quang Ninh ) received a notice from Eximbank Asset Management and Debt Collection Company Limited (Eximbank AMC) alleging a credit card debt of 8.5 million VND from 2013, which had increased to over 8.8 billion VND by 2023, causing a public outcry. Regarding this case, Mr. Nguyen Ho Hoang Vu, Deputy General Director of Eximbank, stated that Eximbank and the customer have agreed to handle the matter, ensuring reasonable and fair interest and fees for both parties, and will inform the media as soon as possible. There is no truth to the claim that the bank collected 8.8 billion VND.

However, as affirmed by Mr. Vo Minh Tuan, Director of the State Bank of Vietnam's Ho Chi Minh City branch, banking is a business based on trust. "This incident will inevitably affect the bank's brand and weaken its competitive reputation. Therefore, banks must pay attention to and resolve the customer's issue to ensure the rights of both parties," Mr. Vo Minh Tuan emphasized.

Source