April 20, 2024

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[THE INVESTOR] The Financial Services Commission on Jan. 15 announced a package of pro-consumer changes that includes lowering fees on ATM transactions, credit card and foreign exchange services, and creating a separate credit rating system for youths.

The package outlines actions to be taken in phases, starting with the lowering of banks’ transaction fees within the first quarter of this year. The regulator will look at the appropriateness of the fees for ATMs and foreign exchange services for better transparency and fairness.

There will be an announcement in July to lower credit card processing fees for small retailers, such as convenience stores, neighborhood supermarkets and bakeries. This will be followed by another measure in November to further lower those fees after reviewing business costs of credit card companies over the first half of the year.

The government will increase financial support for the needy through microloans, and actions will be announced within January on making mid-rate loans more available, the regulator said.

A separate credit rating system will apply to youths to reflect their financial history in credit loans, credit card usage and mobile phone bill payments.

The FSS will consider an extension of partial exemptions of capital gains tax for individual savings accounts from the end of this year.

The regulator plans to set up a new body in February to help small-sum long-term debtors, who are estimated at 1.59 million people.

By Alex Lee and newswires (alexlee@heraldcorp.com)