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Friendly Reminder on RM50 Credit Card and Charge Card Service Tax

It is good that some bank send a SMS reminder to credit card holder about the RM50 Credit Card and Charge Card Service Tax.

Therefore, all the card holder should not have the excuse of NOT knowing about the RM50 Credit Card  Service Tax being charged.

You may read about the RM50 Credit Card and Charge Card Service Tax at Maybank Announcement On RM50 Credit Card and Charge Card Service Tax

 

You can decide or plan  better to cancel or keep the Credit Card with this reminder notification. As for me, I will only keep one Credit Card only in order to save the RM50 Credit Card  Service Tax.

It serves not much purpose to keep so many redundant cards. Most of the Credit Card was applied at Shopping Centre or Expo when the salesman offer freebies.

If you decide to Cancel the Credit Card in Correct way then read How to Cancel a Credit Card | Do It the Right Way

This SMS reminder is from CitiBank.

SMS-citibank

Some Credit Card company  like Direct Access even print the  Government Service Tax Billing date at the statement.

Direct-Access-rm50-Tax

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This is what every bank or Charge Card company should Do!

This entry was posted on Monday, April 26th, 2010 at 10:19 am and is filed under Credit Card. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

2 Responses to “Friendly Reminder on RM50 Credit Card and Charge Card Service Tax”

  1. Confused about card ‘anniversary’

    Citibank says SMS alerts sent out two months prior to renewal date

    TAN from Subang is dissatisfied with Citibank Malaysia’s service. He has two credit cards and decided to cancel one before its ‘anniversary’ date when the government announced a service tax will be imposed on each.

    TAN says he decided to cancel the card before the ‘anniversary’.

    “What was printed on my card was ’05/10′ and I assumed it meant the ‘anniversary’ fell on May 2010 and no notification was received from Citibank to tell me otherwise.”

    Just before cancelling the card in March, he received a statement from Citibank stating the RM50 service tax had already been charged to his March bill.

    “I called Citibank and was made to understand my credit card’s ‘anniversary’ date was 03/10 and not 05/10 as stated on my card.

    “Enquiries revealed Citibank does not inform its clients on the matter. The date does not even appear in the monthly bill as a reminder.”

    TAN wants a clarification from Citibank.

    ● JAYA Menon, head of Corporate Affairs, Citibank Malaysia, says the issue has been sorted out.

    “Our credit cardholders are charged the service tax on the anniversary date of their card renewal. They were informed via SMS alerts two months in advance, beginning April 2010.

    “They also have the option of contacting CitiPhone to check on the billing date.”

    fr:mmail.com.my/content/39309-confused-about-card-anniversary

  2. What gives in credit card payment allocation?

    With reference to the article by P. Gunasegaram in The Star on Aug 14, I wish to add that we need to ask what our Malaysian banks are up to as well.

    As competition is tough for consumer business, banks apparently have found new ways to squeeze that extra cent from unsuspecting customers. One of the areas that is easily manipulated by banks is credit card payment allocation.

    Many do not realise that banks allocate our payment to the transaction which carries least interest first and only later to higher interest transaction balance. For example, if we have cash advance which attracts interest from day one, money paid is are not allocated for it straight away but will be set off against retail transaction or interest-free instalment plan by their skewed interpretation of which comes first. Surely, the balances that carry the highest interest rate should be allocated first but no, they want to use the allocation to their advantage.

    I doubt if Bank Negara is actively monitoring it but e-mails to the address given for complaints will solicit an auto reply that says, if we don’t hear within five days, we must complain via a different method. That’s not all. If one pays extra money to the credit card account for future big transactions that take us over the limit, the bank automatically uses the extra money to pay off the interest-free instalment plan. Why would anyone take an interest-free instalment plan and pay it off early?

    So, as we point out the shortcomings of banks in other countries, we have to pay attention to our Malaysian banks as well. The need to show year-on-year profit growth has turned our banks to merciless profiteering practices where logic and natural justice take a backseat.

    EXTREME PROFITEERING,

    Kuala Lumpur.

    fr:thestar.com.my/news/story.asp?file=/2010/8/17/focus/6869638&sec=focus