Banks should be careful when granting credit to these greedy old Singaporeans.

[bic_cherry]

Banks should be careful when granting credit to these greedy old Singaporeans.

I refer to 'MAS rule unfair to seniors' [ST, 24Sept2011](annexed below).

Firstly, it can be inferred that Mr Koh DOES NOT hold an existing credit card with Maybank. Secondly, how can Mr Koh expect Maybank to grant him unsecured credit when he himself is unwilling to collateralize his 'unencumbered' fixed deposits to cover for whatever credit limit that he should so wish.

Nobody is stopping Mr Koh from using a debit card [wiki] BUT old Mr Koh (who even boasts holding senior position in a bank before) now expects the bank to provide unsecured credit.

Doesn't Mr Koh sense the danger of his proposition? How is the bank to retrieve its dues upon the illness or demise of Mr Koh whose life expectancy remains a great unknown. Will his decedents volunteer to pay or should the bank be expected to write off such dues and consider Mr Koh another charity case/ sub-prime mortgage.

As a senior bank officer, Mr Koh's ought to understand that he himself poses to the bank an immense credit risk both upon his demise as well as upon his investments going south in a volatile market.

Mr Koh could very well be running a scam, going round many banks displaying 'assets' in the hope of gaining cheap unsecured credit.

Banks who wish to operate secure and sustainable business, ought be weary of the glib words of these sly old retirees/ civil servants from "senior positions", the likes of Mr Koh whose actions betray their willingness to 'put their money where their mouth is' [dict]

They could possibly be 'sub-prime' debtors to say the least.

At this age, Mr Koh should spend what he owns and not aspire for more cheap and easy credit. A debit card is the most suitable option for use by Mr Koh.

The Straits Times; Published on Sep 24, 2011
CREDIT CARDS
MAS rule unfair to seniors
RECENTLY I complained to Maybank after it declined my credit card application, which requires a minimum qualifying income of $30,000, and copied my complaint to the Monetary Authority of Singapore (MAS).
While I had substantial unencumbered fixed deposits in that bank, they wanted me to collateralise my credit card limit, which I declined.
I am a 59-year-old retiree who held a senior position in a bank before I retired. I am debt-free, I have no bad credit record, and I own a few properties which are free of encumbrances. Despite the above, I cannot qualify for a credit card simply because MAS requires a minimum qualifying income.
My income tax returns show that I have been paying income tax regularly and without fail.
My regular 'income' is no longer derived from a salary, but from rental income, dividends, interest income, capital gains from share investments, director's fees and so on.
Yet all these do not qualify as eligible 'qualifying' income to the bank and MAS. Those who can voluntarily retire at age 62 or earlier are mostly financially independent, prudent and conservative in managing their personal finances over time.
Such retirees are excellent credit risk for banks, so why are banks and MAS not customising their risk profiling of these older people differently, instead of applying the traditional debt servicing criteria?
They are losing a golden opportunity to expand business to this growing group of well-heeled retirees who may not be super-rich, but are considering investments, spending money travelling, buying expensive goods, cars and so on. My problem is not unique.
Lending banks could get a personal net-worth statement from me, do a historical credit profiling of my person, and check with a local credit agency on my credit history, for instance, to support my wish for a credit card or other credit facilities.
It is time for the banks and MAS to think outside the box if they believe that ours is a progressive and international financial centre.
Raymond Koh Bock Swi
http://www.straitstimes.com/STForum/Story/STIStory_716044.html

 

[halsey02]

Raymond Koh Bock Swi, should know best, since he had worked in the Banking Industry, that Credit Card is a no, no!. Since he is cash rich...cash is KING!...now it is .999 gold bar is emperor!!. Just carry a Debit Card, and pay whatever from that...why want to pay, interest on what you spend..when one have CASH?? oddball!

 

[numero uno]

Banks should be careful when granting credit to these greedy old Singaporeans.

I refer to 'MAS rule unfair to seniors' [ST, 24Sept2011](annexed below).

Firstly, it can be inferred that Mr Koh DOES NOT hold an existing credit card with Maybank. Secondly, how can Mr Koh expect Maybank to grant him unsecured credit when he himself is unwilling to collateralize his 'unencumbered' fixed deposits to cover for whatever credit limit that he should so wish.

Nobody is stopping Mr Koh from using a debit card [wiki] BUT old Mr Koh (who even boasts holding senior position in a bank before) now expects the bank to provide unsecured credit.

Doesn't Mr Koh sense the danger of his proposition? How is the bank to retrieve its dues upon the illness or demise of Mr Koh whose life expectancy remains a great unknown. Will his decedents volunteer to pay or should the bank be expected to write off such dues and consider Mr Koh another charity case/ sub-prime mortgage.

As a senior bank officer, Mr Koh's ought to understand that he himself poses to the bank an immense credit risk both upon his demise as well as upon his investments going south in a volatile market.

Mr Koh could very well be running a scam, going round many banks displaying 'assets' in the hope of gaining cheap unsecured credit.

Banks who wish to operate secure and sustainable business, ought be weary of the glib words of these sly old retirees/ civil servants from "senior positions", the likes of Mr Koh whose actions betray their willingness to 'put their money where their mouth is' [dict]

They could possibly be 'sub-prime' debtors to say the least.

At this age, Mr Koh should spend what he owns and not aspire for more cheap and easy credit. A debit card is the most suitable option for use by Mr Koh.

typical fark up old sinkies thinking just because they are old or senior they deserve respect and credit cards. Banks are no fool. they old foggies bastards are trying their luck to rack up a huge debt and then declare bankrupt . if he has alot of cash the why don't he collateralised it? as a former banker he knows the rules and he is obviously trying to find a loophole here and failing it cow beh cow bu to shitty times and the press . typical modus operandi of born losers and old useless folks. that's why I don't respect alot of them nowadays.. useless sh!ts.

 

[eErotica69]

This old piece of shit cannot afford to use $10K as collateral for a Credit Card meh? He is supposed to be cash and asset rich, surely $10K is chicken feed to him!!

So, what's his point? A matter of Principle? Principle his lan jiao. One leg in coffin still talk about Principle!!

kNNBCCB!!

 

[bic_cherry]

typical fark up old sinkies thinking just because they are old or senior they deserve respect and credit cards. Banks are no fool. they old foggies bastards are trying their luck to rack up a huge debt and then declare bankrupt . if he has alot of cash the why don't he collateralised it? as a former banker he knows the rules and he is obviously trying to find a loophole here and failing it cow beh cow bu to shitty times and the press . typical modus operandi of born losers and old useless folks. that's why I don't respect alot of them nowadays.. useless sh!ts.

Tks for the tip off: I did a Google search for his name and it turns out that he is one of the directors in a company whose share price yesterday was only SGD0.02 a piece. Dunno what he is up to but I really dun think that this guy is suitable for unsecured credit. He should either collateralize whatever credit facility he wishes to keep or else just be happy with a debit card instead (spend as much as your savings account allows).

So many properties, why not collateralize one of them? Or is he just trying to scam the bank by later letting it fight over his estate or for some other reason fail to repay his credit card dues?- (death, disappearance, illness, bankruptcy etc)

And what if he obtained many credit facilities from various banks all around the world? Who is to know what kind of scam might be brewing in his head.

Please lah, if one has so much property already, why be so greedy for another credit facility? Just be happy with what one has at this old age K?

Actually, just thinking, doesn't he also earn a 'salary' as director of 'Tt International'? MAS minimum salary for seniors to hold credit cards according to 'Credit card rule flexible, says MAS' [ST, 28 Sept2011] is SDG 15k p.a. So either Mr Koh DIDN'T declare this as salary or else Mr Koh didn't earn this amount as service to 'Tt International'> neither of these points reflect well on Mr Koh nor the company he represents.

Whatever it it, MAS is correct to restrain the unqualified issuance of credit cards in Singapore so as to protect bank capital erosion by unsecured debtors with little or no interest in repaying their loans.


http://in.reuters.com/finance/stocks/officerProfile?symbol=TINL.SI&officerId=335042

 

[halsey02]

You own, 1,000,000 in stocks of Tt International Ltd., you are a very rich man indeed... ha ha ha $20,000, it has it is weight in SWIll....heh heh heh

 

[eErotica69]

If you have not heard TT International, well TT International House Brand is Akira!!

 

[Leongsam]

SENIOR'S COMPLAINT
Credit card rule flexible, says MAS
Published on Sep 28, 2011


MR RAYMOND Koh Bock Swi asked why the Monetary Authority of Singapore (MAS) does not customise our minimum income requirements for retirees who want to have a credit card ('MAS rule unfair to seniors'; last Saturday).

In fact, MAS recognises that flexibility should be given to retirees who have the means to finance their credit card spending but who do not earn a salary. This is why we allow individuals above 55 years old to qualify for a credit card if they meet a minimum annual income requirement of $15,000, which is lower than the $30,000 minimum requirement that applies to other applicants. This income can come from non-salaried sources, including interest, rental and investment income.

MAS' minimum annual income requirement for credit cards is aimed at discouraging individuals from spending beyond their means.

Financial institutions should also have a rigorous process to assess the creditworthiness of a customer when processing a credit card application. They may have higher internal standards than MAS' minimum requirements. For example, a financial institution may consider some forms of income, such as investment income, more volatile than others. It may also consider whether the individual has other financial commitments, such as other credit cards, when assessing his capacity to repay.

Finally, secured credit cards and debit cards are alternatives that are widely accepted and can be a convenient means of payment.

Angelina Fernandez (Ms)
Director (Communications)
Monetary Authority of Singapore

 

[kingrant]

If banks like maybank doesnt want the business of people like Mr koh, then he shld take his business elsewhere and the bank doesnt deserve his custom. It will be the bank's loss.

Not everyone who uses a credit card is going to max out his card limit and run into debts. Retired seniors can be, and I believe are mostly responsible people who are probably more savvy than the younger set.

With our ageing society, and with a falling fertility ratio, it will be no surprise that the day will come when banks have to bend over backwards to serve the expanding pool of financially well-off, asset-rich, emotionally stable, sensible seniors who have contributed in no small way to the economy.

I agree that seniors and retirees have enough cash for many outlays but a credit card is convenient when you buy things online for instance. Some banks' Black card, e.g. Stanchart's, offer concessions to overseas golf courses which are useful to save on the green fees. However, like Maybank, Stanchart is short sighted and rejects applications for the black card.

SENIOR'S COMPLAINT
Credit card rule flexible, says MAS
Published on Sep 28, 2011


MR RAYMOND Koh Bock Swi asked why the Monetary Authority of Singapore (MAS) does not customise our minimum income requirements for retirees who want to have a credit card ('MAS rule unfair to seniors'; last Saturday).

In fact, MAS recognises that flexibility should be given to retirees who have the means to finance their credit card spending but who do not earn a salary. This is why we allow individuals above 55 years old to qualify for a credit card if they meet a minimum annual income requirement of $15,000, which is lower than the $30,000 minimum requirement that applies to other applicants. This income can come from non-salaried sources, including interest, rental and investment income.

MAS' minimum annual income requirement for credit cards is aimed at discouraging individuals from spending beyond their means.

Financial institutions should also have a rigorous process to assess the creditworthiness of a customer when processing a credit card application. They may have higher internal standards than MAS' minimum requirements. For example, a financial institution may consider some forms of income, such as investment income, more volatile than others. It may also consider whether the individual has other financial commitments, such as other credit cards, when assessing his capacity to repay.

Finally, secured credit cards and debit cards are alternatives that are widely accepted and can be a convenient means of payment.

Angelina Fernandez (Ms)
Director (Communications)
Monetary Authority of Singapore

 

[bic_cherry]

Banks should be careful when granting credit to these greedy old Singaporeans.
...

New version:
Banks should be careful when granting credit to these demanding and greedy old Seniors.

I refer to 'MAS rule unfair to seniors' [ST, 24Sept2011] (annexed bottom).

Firstly, it can be inferred that Mr Koh DOES NOT hold an existing credit card account with Maybank, which is what prevents Maybank from granting him unsecured credit on a credit card. Secondly, how can Mr Koh expect Maybank to grant him unsecured credit when he himself is unwilling to collateralize his "substantial unencumbered fixed deposits" to cover for whatever credit limit that he so demands.

Nobody is stopping Mr Koh from using a credit card in so far as he is willing to collateralize an amount equal to the credit limit of the credit card account; or else a debit card [wiki] without any need for collateral at all.

Whilst Mr Koh introduces himself as a "59-year-old retiree who held a senior position in a bank" the inherent and unjustified risk that the bank takes in providing debtors with unsecured credit seems to elude him.

If banks were expected to provide seniors with unsecured credit then what is to prevent Seniors, the likes of Mr Koh to go 'bank shopping' demanding cheap and easy credit from banks all over Singapore for suspect reasons known only to himself.

Doesn't Mr Koh sense the danger of his proposition? How is the bank to retrieve its dues upon the illness or demise of Mr Koh whose life expectancy remains another great unknown. Will his decedents/ estate administrators volunteer to settle his dues or should the bank be expected to seek in protracted legal recourse to recover such dues; or worse write off such dues as bad debts only to seek a later bail out through the use of government funds?

As a senior bank officer, Mr Koh's ought to understand that this irresponsible and arrogant demands by Seniors that he advocates poses to the bank an immense credit risk as none of his investments, with the exception of collateralized FD accounts is guaranteed in the midst of a volatile economy. Could Mr Koh become bankrupt by the casino?

As a matured and respectable Senior, hasn't Mr Koh already earned enough in his lifetime, and given his "substantial unencumbered fixed deposits (FD)" in the bank, why isn't Mr Koh willing to collateralize even a small proportion of it to reassure the bank that his application for the credit card and its associated credit limit is a bonafide one?

Or is the monies in the fixed deposit account only temporary and could Mr Koh be running a scam?

Banks who wish to operate secure and sustainable business, ought be weary of the smooth words of these sly old retirees/ civil servants from "senior positions", the likes of Mr Koh whose actions betray their willingness to 'put their money where their mouth is' [def.]

They could even be 'sub-prime' debtors for all we know.

At his age, Mr Koh should spend what he owns and not abuse the banking system for more cheap and easy credit. A debit card or secured credit card is the most suitable option for use by Mr Koh.

Reference:
- e.g. 'Maybankard Visa Debit' [Maybank]
- e.g. 'HSBC Secured Visa Credit Card' : [link]

 

[kingrant]

We all grow old one day and become senior status. The TS is no exception. Unless he dies early, one day he will also face such a situation. His children will call him old, greedy and demanding. So why the axe to grind? Bad for karma.

 

[bic_cherry]

Let us not die in in the midst of an unpaid debt to our nation's descendents.

Re: Banks should be careful when granting credit to these greedy old Singaporeans.
If banks like maybank doesnt want the business of people like Mr koh, then he shld take his business elsewhere and the bank doesnt deserve his custom. It will be the bank's loss.
Not everyone who uses a credit card is going to max out his card limit and run into debts. Retired seniors can be, and I believe are mostly responsible people who are probably more savvy than the younger set. ...

As mentioned, to prevent further bank bailouts from sub-prime lending, banks all over have to be careful about who and whom they lend to. Recovering a debt from a bankrupt or dead person isn't a simple affair and banks have every right to protect themselves against such capital risks. Governments world over are short of cash as they have overspent, the cost of bailouts being only one amongst many reasons for that.

Responsibility isn't dependent on age dear, age only gives experience to a person. Was Bernard Madoff [wiki] young and immature? Certainly not; its just that he put his financial knowledge to the most devious use, causing investors to his now declared ponzi scheme a loss of USD 18billion (Wikipedia) and earning himself the longest jail term legally possible. Proof of age is no proof of competence nor honesty.

... With our ageing society, and with a falling fertility ratio, it will be no surprise that the day will come when banks have to bend over backwards to serve the expanding pool of financially well-off, asset-rich, emotionally stable, sensible seniors who have contributed in no small way to the economy.
I agree that seniors and retirees have enough cash for many outlays but a credit card is convenient when you buy things online for instance. Some banks' Black card, e.g. Stanchart's, offer concessions to overseas golf courses which are useful to save on the green fees. However, like Maybank, Stanchart is short sighted and rejects applications for the black card.

The rich whose 'money is where their mouth is' will have NO PROBLEM obtaining credit in so far as they guarantee such credit with an equal and equivalent amount collateral in terms of assets or fixed deposits (FD). Upon their demise, the bank can conveniently close their accounts and return the excess of such pledged accounts to the administrators of the deceased estate.

Aren't seniors susceptible too, by the seduction of easy monies from gaming at our two spanking new casinos?

The 'black card' that you have mentioned and according to Wikipedia 'Black card' is issued by Amex and typically invitees include those with annual incomes > 0.6 million euros and with assets worth > 4.5million euros. It is laughable for you to suggest persons should qualify for such privilege just on the basis of age alone.

The result of more sub-prime mortgages and bad debts to banks would only result in more government bank bail-outs resulting in greater taxes on the entire population and greater pressures on the working young to pay taxes, either direct or indirect through an increased cost of living.

With govt debt across the world at an all time high today (USA=1xGDP, Japan = 2x GDP); no wonder the pressures upon the young to be ever more 'productive' in unnatural and pressurized working environments that perhaps the falling fertility ratio amongst the young in the advanced world is no surprise today.

The governments of today have spent on the premise of recalcitrant inflation tomorrow. We are neither responsible nor mature adults to hand over a life of refractory inflation to our descendents.

Let us not die in in the midst of an unpaid debt to our nation's descendents.

We all grow old one day and become senior status. The TS is no exception. Unless he dies early, one day he will also face such a situation. His children will call him old, greedy and demanding. So why the axe to grind? Bad for karma.

Those who DO NOT place their 'money where their mouth is' [def] are irresponsible seniors, they have no right to an unsecured credit card, period.

 

[kingrant]

Re: Let us not die in in the midst of an unpaid debt to our nation's descendents.

Right. The world's global financial crisis and the subprime crisis was because we gave a black credit card to a senior retiree like Madoff who overspent millions of euros and brought the house down! LOL! Even if all the world's seniors owed their banks $30,000, the system still wont collapse. Haha. you are truly naive.

It just shows how blur you are. The black card I was talking abt , and I specifically mentioned Stanchart, so you also have some comprehension problems too, has a credit limit of $10,000 and an annual income criteria of $30,000. So, I suppose DBS, Stanchart etc were wise not to give retirees like Mr Koh and me a black card because we would end up buying the world and bringing down all the banks on Wall St. LOL!!!

Don't just wiki here and there. Use yr head too. The GFC and the subprime were not because of retirees holding credit cards with credit limit of $10,000. Madoff was a hedge fund manager who collected investment funds but created a ponzi scheme with his client's money, not dabbling with credit cards. As you can see, dear old fuddy duddy Bernie didnt use a credit card. Lol!

The phrase "the elephant in the room" is I suppose coined specially for blurfucks like you. Dont tyr to show off yr finance knowledge by wiki when you dont even understand Finance 101.

Yr argument is truly weird. Madoff=financial crisis; Madoff=old; therefore old=financial crisis. LOL!

Responsibility isn't dependent on age dear, age only gives experience to a person. Was Bernard Madoff [wiki] young and immature? Certainly not; its just that he put his financial knowledge to the most devious use, causing investors to his now declared ponzi scheme a loss of USD 18billion (Wikipedia) and earning himself the longest jail term legally possible. Proof of age is no proof of competence nor honesty.


The rich whose 'money is where their mouth is' will have NO PROBLEM obtaining credit in so far as they guarantee such credit with an equal and equivalent amount collateral in terms of assets or fixed deposits (FD). Upon their demise, the bank can conveniently close their accounts and return the excess of such pledged accounts to the administrators of the deceased estate.

Aren't seniors susceptible too, by the seduction of easy monies from gaming at our two spanking new casinos?

The 'black card' that you have mentioned and according to Wikipedia 'Black card' is issued by Amex and typically invitees include those with annual incomes > 0.6 million euros and with assets worth > 4.5million euros. It is laughable for you to suggest persons should qualify for such privilege just on the basis of age alone.



Those who DO NOT place their 'money where their mouth is' [def] are irresponsible seniors, they have no right to an unsecured credit card, period.