By Koh Hui Theng

READING the fine print just got easier, if you are an American credit-card holder.

Last May, the authorities in the United States stated that all information, including applications and disclosures for that piece of plastic, has to be printed in at least 12-point font.

These rules are not in effect here. But The Association of Banks in Singapore (ABS) has a Code of Consumer Banking Practice.

Banks have to highlight key areas such as fees, charges, penalties, interest rates, customers' liabilities and obligations in their terms and conditions and product brochures.

Such caveats are little comfort to 34-year-old sales consultant Wendy Lee (not her real name). Her freewheeling spending on 13 credit accounts - and a habit of paying only the minimum amount - led to a $60,000 debt.

Stressed out because she was unable to keep up with the minimum $1,800 payment the banks stipulated, Ms Lee eventually approached Credit Counselling Singapore for help last July.

Now a bankrupt, she is making repayment instalments to eight creditors and hopes to be debt-free in five years' time.

Till today, Ms Lee is puzzled over why she was allowed a $10,000 credit limit.

"My monthly pay depends on commissions and varies from over $2,000 to $3,000. So, why did the banks give me such a high limit?" she asked.

my paper posed this and other queries to the experts: ABS director Ong Ai Boon; OCBC Bank's head of credit cards, Ms Alice Goh, and a UOB spokesman.

» How do card issuers determine an applicant's credit limit?
» What are the main reasons why people default on their credit-card payments?
» What is the real return on interest?
» What's a balance transfer?
» Wise up to these credit terms

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