July 3, 2007

AFFINBANK first to cut credit card finance charge to a single digit and offer 0% interest on balance transfer

KUALA LUMPUR - Affin Bank Berhad (AFFINBANK) became the first to cut its finance charge to a single digit, after it announced today that effective 31 August 2007, all its credit cards have a low 9.99% annual finance charge compared with 18% currently offered by most card issuing banks. In addition, the Bank also introduced 0% interest on balance transfer for up to 12 months.

The move marks yet another milestone in AFFINBANK's continuing endeavour to offer unique value propositions to consumers by developing products and solutions that best address their much felt needs.

'We are very proud to be the first to heed Bank Negara's latest move in giving incentive to credit card users to manage their debts properly by reducing the finance charge to a reasonable level,' said Dato' Sri Abdul Hamidy Abdul Hafiz, AFFINBANK Managing Director & Chief Executive Officer in a speech during a joint cocktail reception held for the clients, regulators and peers of AFFINBANK, Affin Islamic Bank Berhad and Affin Investment Bank Berhad.

'We have taken into account the needs and requirements of our customers and have deduced that good clients must be rewarded. At the same time, we are also encouraging customers to use credit card more widely yet responsibly. I must admit that making this effort profitable without burdening our card holders is a great challenge,' he added.

The lowest finance charge in the market is offered to all new and existing AFFINBANK card holders. To enjoy the new rate, they need to settle at least the minimum payment of their outstanding balance by the payment due date.

The latest move to cut the finance charge is also seen as a way to reward deserving customers who support the Bank. It works much in the same way No Claim Bonus (NCB) does for the motor insurance industry. In addition, the financial market is expected to benefit with lower provisions required from fewer non-performing accounts.

The new finance charge applies to all AFFINBANK credit cards namely:

• AFFINBANK MasterCard Gold
• AFFINBANK MasterCard Classic
• AFFINBANK Visa Gold
• AFFINBANK Visa Classic
• AFFINBANK Touch ‘n Go MasterCard Gold
• AFFINBANK Touch ‘n Go MasterCard Classic
• AFFINBANK BHPetrol Touch & Fuel MasterCard with PayPass
• AFFINBANK OPA MasterCard Gold
  

Bank Negara last week announced the introduction of a tiered pricing structure which classifies credit card holders into low-risk, medium-risk and high-risk categories. A higher penalty will be charged for those who default on their credit card repayments.

For more information on AFFINBANK credit cards and to apply, please contact our Call Centre at 03-5522 3000.

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