The State Bank of Pakistan (SBP) has directed banks to provide an upfront key product fact sheet on credit cards.
This direction follows a circular issued by the Consumer Protection Division on 20 February 2014, aimed at enhancing the existing level of transparency and disclosures in the credit card business.
Go deeper with GlobalData
Pakistani banks will have to provide an upfront key product fact sheet in the form of a summary box to their prospective customers from 1 September 2014.
The SBP has also sent a specimen of the summary box to banks. The box must contain the minimum information relating to APR, effective interest rates and card limits.
However, according to the circular, banks may add any further material information in the summary box as they deem necessary.
Banks have also been asked to retain a duplicate of summary box duly signed by the customer and authorised banker before issuing any credit card, in line with the SBP record retention regulations.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataBanks that fail to comply with the directives shall be penalised.
Related articles:
More prepaid regulation could prompt US banks to leave market – Fitch Ratings
New EU cards legislation worries consumers – Ipsos
Beyond the Awkward Call: Collections and Recovery Strategies for the New Breed of Debtors
