Credit Cards

Getting Charged for That Unsolicited Credit Card You Never Activated

credit card charges singapore

Have you ever received an unsolicited credit card before? If you have, did you activate it or did you simply discard it (hopefully via shredder) because you’ve already got enough plastic in your wallet already?

If you didn’t activate the card – don’t be surprised if you end up getting a bill from the credit card issuer for the card’s annual fee. “What the hell, they can’t do that!” You’re absolutely right – they can’t.

But whether it’s an honest error, a devious conspiracy to rip you off, or just plain laziness on the part of the credit card Issuer(s) – it is still happening as one of our readers, Daniel, just found out.

 

Have you ever received a credit card without your consent?

Remember the days when the banks used to send out credit cards to everyone who had a bank account and a few dollars to their name? Yeah, it wasn’t until late 2013 when all of that nonsense came to an end.

That’s when the Monetary Authority of Singapore (MAS) revised the way Financial Institutions (FIs) did business.

Designed to transform the way FIs issue credit cards and unsecured credit, the Draft Amendments to Credit Cards and Unsecured Credit Card Rules included the following changes:

  • Required FIs to check the credit of borrowers before issuing credit cards
  • Required FIs to conduct credit bureau income checks before increasing credit limits
  • Required FIs to conduct credit bureau income checks whenever a borrower shows signs of having potential debt problems
  • Required FIs to disclose the total time needed to fully pay off debts with the minimum payment and how much debt would accumulate with 6 months non-payment
  • Required FIs to obtain a borrower’s consent in writing for any credit limit increase
  • Required FIs to enable borrowers to request their preferred credit limits

These changes were supposed to improve the lending practices of FIs, but unfortunately there were plenty of unsolicited credit cards sent before these measures came into being.

That’s when people like Daniel, who discarded such unwanted offers, received a nasty surprise in the mail just a few days ago.

“I just got a bill with an annual fee charge on a DBS Capita Visa Platinum card that was sent sometime in 2012 – and I’ve never even activated or used such a card,” explained Daniel. “I understand that recent regulations came into play that requires a card to be activated before any charges can be applied, but this card was sent prior to those changes taking effect.”

As you can imagine, upon receiving that statement of charges in the mail – an extremely uncomfortable phone exchange with the bank ensured and the problem was resolved.

However, that’s not the issue. What really pissed Daniel off the most was the time he wasted calling the bank to fix a problem that honestly shouldn’t even have occurred in the first place.

 

What can you do to prevent this from happening to you? 

It’s kind of scary to know that you might have some unsolicited credit card you received between 2012 and 2013 that will manifest itself back into your life in the form of an annual fee charge. That’s because most credit cards waive the annual fee for a year or more.

Other than waiting for that statement to come in from an unsolicited card, you can try checking your credit report with the Credit Bureau Singapore (CBS). It’s not free, but at $6.42, it’s a small price to pay to check on all of the “open” accounts you have – including unsolicited credit card accounts that the bank(s) may have “mistakenly” left open.

If you have online banking, you should also be able to see all the accounts you have with your bank – including any credit card accounts.

Of course, you might also receive such a statement without warning as well – and in that case, you’ll have no choice but to call the bank(s) and battle through numerous automated phone menus and waste tons of time just to speak to a human voice on the other end.

It’s unfortunate, but necessary. And on that note, I really only have one question for everyone reading this – how many of you have had to deal with the same bogus annual fee charge for an unsolicited card?

 

Get credit cards from well-reputed banks

Citi PremierMiles Visa Card

Citi PremierMiles Visa Card


Card Benefits

  • Get S$200 NTUC Fairprice OR CapitaLand Vouchers with Citibank!
  • S$1 = 1.2 Citi Miles on Local spend
  • S$1 = 2 Citi Miles on Foreign currency spend
  • Earn up to 7 Citi Miles per S$1 spent on Agoda.com/bonusmiles (valid till 31 Jul 2019), 3 Citi Miles per S$1 spent on Expedia.com.sg/bonusrewards (valid till 31 May 2019) and 10 Citi Miles per S$1 spent on Kaligo.com/bonus-miles (valid till 31 Dec 2019)
  • Citi Miles never expire
  • Priority Pass™ membership gives you access to more than 600 airport lounges twice a year
  • Complimentary Travel Accident Insurance up to S$1,000,000 coverage, Medical Assistance Programme and Travel Inconvenience Coverage
DBS Altitude Visa Signature Card

DBS Altitude Visa Signature Card


Card Benefits

    • S$1 = 1.2 miles (Local spend)
    • S$1 = 2 miles (Overseas spend)
    • S$1 = 3 miles (Online flight & Hotel transactions)
    • 6 miles/S$1 spend at Expedia; 10 miles/S$1 spend at Kaligo
    • Get 10,000 Bonus Miles when you renew your annual membership
    • Enjoy 2 Complimentary Global Airport Lounge Access visits and get up to S$1 million travel accident insurance coverage for you and your family members
    Standard Chartered Unlimited Cashback Credit Card

    Standard Chartered Unlimited Cashback Credit Card


    Card Benefits

    • Get SS200 Cash + Cashback - Standard Chartered Bank Unlimited Cashback Card
    • Submit your (i)Contact Details and (ii)11-13 digit Reference Number on the Thank You Page upon completion at MoneySmart Claim Form by 28 Feb 2019 for your S$150 Cash Gift. Refer to T&Cs here
    • 1.5% cashback on all eligible spend
    • No cashback cap and no minimum spend
    • Doubles up as your ez-link card with the EZ-Link facility enabled on it
    • Enjoy discounted movie tickets at Cathay Cineplexes
    UOB One Card

    UOB One Card


    Card Benefits

      • Up to 5% cash rebate on all spend for spend above S$2,000/month per quarter (up to 3.33% cash rebate for spend of $500 or $1,000 monthly)
      • Up to 10% additional SMART$ rebate with UOB SMART$ Rebate Programme

      Have you had to deal with an “annual fee” for an unsolicited credit card recently? Share your thoughts with us on Facebook! For even more useful information on everything personal finance, visit MoneySmart today!

       

      Tags: