Highlights | RHB Malaysia

ANNOUNCEMENT

Important Notice: Revision of RHB Bank Cardholder Agreement w.e.f. 19 August 2019

Dear Valued Customers,

We would like to inform that our RHB Bank Cardholder Agreement will be updated and revised as follows and shall take effect from 19 August 2019.

Existing Clause

Revised Clause

Clause 7.1

Upon receipt of the Card Statement, the Cardmember shall pay to the Card Account the minimum payment due as set out below or up to the outstanding balance shown on the Card Statement (the Outstanding Balance) on or before the Payment Due Date as stated in the Card Statement. The minimum payment due shall be:

a)	5% (or such other amount or rate as may be determined by RHB Bank form time to time in its absolute discretion) of the total Outstanding Balance in the Card Account plus any previous balance due or RM50.00, whichever is higher; or
b)	Where the Outstanding Balance exceeds the Card Limit of the Cardmember, and the amount in excess of the Card Limit plus the amount due under clause 7.1(a), including any previous balance due; or
c)	Where the Card is operated as a charge card and repayment of the full amount of the Outstanding Balance is required monthly, the Outstanding Balance in the Card Statement.

Clause 7.1

Upon receipt of the Card Statement, the Cardmember shall pay to the Card Account the minimum payment due as set out below or up to the outstanding balance shown on the Card Statement (Outstanding Balance) on or before the Payment Due Date as stated in the Card Statement. The minimum payment due will be:

a)	5% of Outstanding Balance (comprising of retail transactions, balance transfer, cash advance amount, finance charges and fees, if any) and
b)	All monthly instalments due (contracted Easy Payment Plan, Balance Transfer Plan, CashXcess Plan and all other instalment plans available from time to time, if any) signed up from 2 October 2019, and
c)	The contracted monthly term loan instalment for any automatic balance conversion (ABC) if any, and
d)	Any unpaid minimum payments specified in the preceding month’s statement (if any) and
e)	Amount in excess of the Card Limit during the statement month (if any) and
f)	Card Service Tax and any other value added taxes imposed
	Or
g)	A minimum amount of RM50 from the outstanding balance, whichever is higher.

Clause 12.1 (d)

The Cardmember agrees to pay and authorises RHB Bank to debit his Card Account (or where there are more than one Card Account, any one or more of them) for the following fees and financial charges:

d)	If all or any of the Finance Charge remains unpaid after the Payment Due Date, the Finance Charge shall not be imposed on any outstanding finance charges and other fees that were carried forward from previous statement that is unpaid after the Payment Due Date.

Clause 12.1 (d)

The Cardmember agrees to pay and authorises RHB Bank to debit his/her Card Account (or where there are more than one Card Account, any one or more of them) for the following fees and financial charges:

d)	If all or any of the Finance Charge remains unpaid after the Payment Due Date, the Finance Charge will be imposed on any outstanding finance charges and other fees (excluding late payment charge) that were carried forward from previous statement that is unpaid after the Payment Due Date.

Clause 12.3

Subject always to the provisions of this Agreement and without in any way affecting the Cardmember’s obligation to pay and/or repay the amounts covenanted to be paid as stipulated in this Agreement, if any cash advances fees, finance charges or any other fees, costs or charges (including without limitation to RHB Bank’s legal fees, on solicitors and client basis) remains unpaid after the day the same ought to have been paid, then in every such case the cash advance fees, finance charges or any other related cost or charge (including without limitation RHB Bank’s legal fees and costs, on a solicitors and client basis) shall at the expiration of the month on which the same ought to be paid or such other period that RHB Bank may decide,be added to the outstanding debit balance in the relevant Card Account and shall not attract to any finance charges.

Clause 12.3

If any Cash Advances Fees, Finance Charges or any other fees, costs or charges (including RHB Bank’s legal fees, on solicitors and client basis) remains unpaid after the day the same ought to have been paid, then in every such case the Cash Advance Fees, Finance Charges or any other related fees,(excluding late payment charge) costs or charges (including RHB Bank’s legal fees and costs, on a solicitors and client basis) will at the expiration of the month in which the same ought to be paid or such other period that RHB Bank may decide and state in the Cardmember, be added to the outstanding debit balance in the relevant Card Account and will attract any Finance Charges. Having said that, this provision does not affect the Cardmember’s obligation to pay any other amount which is to be paid by the Cardmember under this Agreement.

Clause 13.3

In cases where Cardmember opt to pay the minimum amount of five percent (5%) instead of monthly instalment amount, customer will be liable for the interest charges of any outstanding amount.

Clause 13.3

In cases where the Cardmember does not pay the Monthly Instalment amount in full, the Cardmember will be liable for the Finance Charges of the outstanding amount. Such Finance Charges will be calculated in accordance with Clause 12.1 (c).

Thank you.

Frequently Asked Questions (FAQs)

Q: How will this change on interest charging and payment allocation impact my existing credit card balance?
A: If you do not have any carried forward balance in your credit card account, there will be no impact to your existing credit card account. You will continue to enjoy a minimum of 20 days interest free period from the statement date of all retail transactions paid with the credit card. However, if you have carried forward balances in your credit card account, we will apply finance charges at the Bank’s prevailing rate on all unpaid balances including on finance charges and fees (except late payment charges). This means that any unpaid billed monthly statement amount will accrue interest on all unpaid balances including finance charges and all fees (except late payment charges) until the date of full repayment of the outstanding amount.
Illustration on finance charges as below:

Carried Forward Balances					Interest Rate per month	Finance Charges (RM)s
Transaction type	Outstanding Amount (RM)	Breakdown				Finance Charges (RM)s
Transaction type	Outstanding Amount (RM)	Principal (RM)	Interest (RM)	Fees (RM)		BEFORE	AFTER
Cash Advance	2,065.00	2,000.00	15.00	50.00	1.50%	2,000.00*1.5% = 30.00	2,065.00*1.5% = 30.98
Monthly Installment	500.00	400.00	100.00	0.00	1.25%	400.00*1.25% = 5.00	500.00*1.25% = 6.25
Retail Transaction	505.50	500.00	5.50	0.00	1.25%	500.00*1.25% = 6.25	505.50*1.25% = 6.32
Annual Fee	200.00	0.00	0.00	200.00	1.25%	0*1.25% = 0.00	200*1.25% = 2.50
Total Finance Charges						41.25	46.05

Q: Why is the change being made?
A: Cardholders are encouraged to make full payment of their current balances by the payment due date in order to avoid finance charges.

Q: How will my payments be applied to settle my statement balances? In what order of priority?
A: Payments received from Cardmember will be applied towards tax, followed by Cash Advance, monthly instalments (auto balance conversion, easy payment plan, credit card instalment plan and other instalment plans available from time to time) and outstanding balances attracting the highest interest rate to the lowest interest rate. Payment received will be applied towards settlement of tax, outstanding finance charges (or interest), followed by outstanding principal balance, fees and charges.