Auto Balance Conversion
This programme is aimed at helping eligible customers pay off their outstanding credit card[1] balances in a shorter period at a lower rate. This will reduce the overall interest[2] to customers.
It is also designed to promote prudent financial management among consumers, i.e. spending within your means and paying your credit card[1] debt faster.
Auto Balance Conversion Programme
balance-1

Low Rate

13% p.a. *EIR[2] vs. 15% - 18% p.a. on your credit card[1] unpaid balances

* EIR[2] refers to Effective Interest Rate[2]

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Zero Fee

No processing fee at each conversion and no termination fee when you wish to early settle the instalment plan

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Hassle-Free

Auto-convert your unpaid credit card[1] balances every 12 months at a lower rate

Features
  • Eligible customer will be given advance notice prior to being enrolled into the programme. The customer may decline the offer.
  • Your unpaid credit card[1] balances will be converted into 36 monthly instalments
  • You must pay the instalment in full every month
  • Balances will be converted at 13% p.a. (effective interest rate[2])
  • Minimum convertible amount is RM1,000
  • For credit card-i, convertible amount* = total statement balance - total payment made
* for Islamic bank, Convertible amount[4] = Total unpaid principal balance

Please note that the amount converted will be booked on your existing credit card[1] limit[3]. Each monthly instalment you pay will incrementally restore your available credit limit[3] or in full once the Auto Balance Conversion is fully repaid.

How it works

Upon enrolment for this programme, your credit card[1] outstanding balance will be assessed after payment due date and converted into 36 monthly instalments upon meeting the eligibility criteria every 12 months.

Awareness Notice

25 Jul 2019

Enrol Date

24 Aug 2019

Statement Date

1 Sep 2019

Payment Due Date

21 Sep 2019

Conversion Date

26 Sep 2019

Next cycle eligible for conversion

Sep 2020 Statement

Awareness Notice

25 Jul 2019

Enrol Date

25 Aug 2019

Statement Date

1 Sep 2019

Payment Due Date

21 Sep 2019

Conversion Date

26 Sep 2019

Next cycle eligible for conversion

Sep 2020 Statement

Notes: Dates above to denote timeline of how the process works
  • Participating credit card issuers will auto-enrol eligible customers
  • Upon enrolment, the outstanding statement balance[4] will be converted after payment due date + payment grace period*
    *The illustration assumes payment grace period = 4 days. Please refer to your respective credit card issuers for details
Benefits
  • Lower rate @ 13% p.a. versus 15% - 18% p.a. credit card[1] interest[2]
  • Hassle-free conversion - your outstanding statement balances[4] will be converted upon meeting eligibility criteria (annual assessment)
  • No processing fee on the conversion
  • No termination fee – flexibility to early settle your instalment plan with no additional fee
  • Flexibility to opt-out from each conversion offer

Monthly Payment Due Illustration:

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This is only an illustration of minimum payment due with and without the Auto Balance Conversion with the following assumptions:

  • i) Minimum payment due is 5% of statement balance.
    Customer makes minimum payment due (5%) monthly.
  • ii) There is no new retail spend or cash advance following
    the conversion.
  • iii) The outstanding balance consists of retail spend only
    and revolves at 17%p.a.
  • iv) The monthly instalment amount from Auto Balance
    Conversion is RM320 and 100% of instalment amount
    is to be paid in full as part of minimum payment due.
Eligibility criteria

Note:

Opt-Out or Cancel

* For credit card-i, your credit card issuer will grant a rebate where applicable, for early settlement of the instalment plan.

Please refer to your respective credit card issuers for detailed T&Cs

Q.

What is Auto Balance Conversion?

A.

Auto Balance Conversion is a credit card[1] programme available to eligible cardmembers to automatically convert the outstanding balances[4] into smaller instalments if the eligibility criteria are met. If your outstanding statement balance meets a minimum amount of RM1000, it will be converted into an instalment plan at 13% p.a. for 36 months. You may choose to opt-out of this programme at any time.

Q.

How do I qualify for Auto Balance Conversion?

A.

You are eligible for the Auto Balance Conversion upon meeting the following eligibility criteria:

  • i)Monthly income= < RM5,000 (per income record with respective credit card issuer) and
  • ii)Payment ratio =<10% of outstanding balances over last 12 months’ average
    (Payment ratio = Total payment over last 12 months / total statement balance over last 12 months)
  • Eligibility will be assessed annually.

Q.

How do I enrol for the Auto Balance Conversion?

A.

You will be automatically enrolled into the programme by your credit card issuer upon meeting the eligibility criteria every 12 months.

Q.

How does Auto Balance Conversion work and when does conversion happen?

A.

Upon auto enrolment to the programme, your credit card[1] statement balance will be assessed on the payment due date + payment grace period (varies for each credit card issuer). If your outstanding statement balance[4] (excluding payment made) meets the criteria of minimum of RM1,000, it will be converted into an instalment plan as per agreed interest rate[2] and tenure. Auto Balance Conversion will not happen to a delinquent account of which no minimum payment is made past due date. Subsequent conversions will be offered to eligible customers at a 12-month interval via an advance notice.

Q.

What happens if I do not meet the minimum threshold of RM1,000 statement balance or eligibility criteria in the assessment month?

A.

Auto Balance Conversion will not happen. The re-assessment will happen in the following month.

Q.

How do I opt-out from this Auto Balance Conversion?

A.

You can opt-out from each balance conversion offer by contacting your credit card issuer.

Q.

Can I cancel my plan post balance conversion?

A.

There is a 30 days grace period for cancellation post conversion for the 1st time conversion. If you opt to cancel the instalment plan after this period, you will have to repay the outstanding principal in full. For subsequent conversions, if you choose to cancel the instalment plan after it has commenced, you will have to repay the outstanding principal in full.

Q.

What if I fully settle the Auto Balance Conversion Plan before its maturity?

A.

You may at any time early settle the Auto Balance Conversion instalment amount without any early termination fee. You are required to pay the total outstanding unpaid principal in full.

Q.

What are my monthly obligations upon a successful Auto Balance Conversion?

A.

The Auto Balance Conversion instalment amount must be paid in full every month. The monthly instalment amount will be calculated from the date when the conversion happens using a reducing balance payment method. The effective interest rate[2] is 13% p.a. and the tenure is 36 months. The first instalment (comprising of principal and interest[2]) payable will be reflected in the subsequent credit card[1] statement.

Q.

What if I fail to fulfill my monthly payment obligations?

A.

If you fail to pay your monthly instalments by the due date, treatment of the outstanding balances will follow your credit card issuer’s current practices for credit card[1]. Please contact your credit card issuer’s for further details.

Q.

What will happen to my credit card[1] limit[3] upon a successful Auto Balance Conversion?

A.

Upon successful Auto Balance Conversion, the amount converted will be booked on your existing credit card[1] limit[3]. Each monthly instalment you repay will incrementally restore your available credit limit[3] or in full once the Auto Balance Conversion is fully repaid.