State Bank of Pakistan orders banks to be upfront about credit cards

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.

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.

Banks that fail to comply with the directives shall be penalised.

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