Bank Negara says direct-selling and enforcement of Direct Sales Act not its duty

If it is not the duty of BNM to monitor the activities of banks, who else is responsible?

Of late the action of BNM to approve late payment charges to credit card loans up to 1% or RM100.00 whichever is higher every month is a major setback on its responsibilities to protect the rakyat from scrupulous bankers who put profit above anything.

The rakyat is already suffering due to the recession and this charge is an extra burden to those who have credit balance and couldn't meet the monthly dateline or due date for payment.

Bankers are charging customers without mercy. Some of the loans are made before the approval and with a short notice the banks a charging customers this new rate.

We, the rakyat appeal to BNM to immediately reverse the late payment penalty to that practiced earlier.

NST Online reports :

ACCORDING to Bank Negara, the business of direct-selling and the enforcement of the Direct Sales Act 1993 does not fall under its purview.

"Hence, we are unable to comment on the protection of customers of the direct-selling companies," it said.

It added that for a payment by credit card, the card holder would need to authorise the issuer to make payment to the parties concerned.

To a question on why banks provided credit card machines for companies whose licences have been revoked, and as to when a consumer could revoke a credit card transaction, the central bank said: "Generally, the payment authorised by a card holder would be for purchase of goods or services from a merchant.

"As such, subject to the consent of the merchant after agreeing on another mode of payment or return of the goods or services by the card holder, the merchant and/or the card holder may inform the credit card issuer to reverse the credit card transaction.
"The agreement between a merchant and a credit card issuer may include provisions on chargeback in addressing any disputes from card holders. The credit card issuer could exercise the chargeback as provided under the agreement after notifying the merchant."