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Money

Banks banned to issue credit cards to minors

(crienglish.com)
Updated: 2010-08-13 08:50
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Banks in China should not issue a credit card to people younger than 18, the China Banking Regulatory Commission (CBRC) reiterated Wednesday in its latest list of rules and regulation.

Banks banned to issue credit cards to minors

Students look at advertisements for credit card service in this undated photo at the campus of Peking University in Beijing.?[Photo/Cnsphoto]?

The rules, designed to meet an increasing number of credit card complaints, stipulate that minors should receive no more than a supplementary card or bank card limited to family members of existing bank account holders. At the same time, all young card owners will have a limited borrowing limit and receive plenty of advice on how to best use their new card.

Related readings:
Banks banned to issue credit cards to minors New rule to crack down on credit card cash-outs
Banks banned to issue credit cards to minors More 'credit card slaves' trapped by crushing debt
Banks banned to issue credit cards to minors Stories of credit card fraud

The report noted that the CBRC had also warned that it would ban minors from getting credit cards.

Other rules include banks being told not to charge any fees on non-activated credit cards. Moreover, when card holders have special reasons for not being able to make repayments, banks must consult with them and set up a personalized contract in order to protect their rights.

The total number of credit cards issued by commercial banks in China has climbed to 185 million. In the first half year of 2010, credit card turnover in China reached 2.2 trillion yuan ($324.7 billion), a year-on-year rise of 0.73 trillion yuan.

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