Credit card default cases up<\/p>\n
JAKARTA (JP): Credit card defaulting has increased
\nsubstantially in the wake of the deepening economic turmoil, the
\nIndonesian Credit Card Association has said.<\/p>\n
Association chairman Malik Habir said yesterday the extent of
\nthe defaulting -- payment delayed by more than 30 days -- had
\nrisen to 14 percent of the Rp 2.41 trillion (US$185 million)
\ntotal outstanding volume from the 10 percent figure before the
\ncrisis.<\/p>\n
\"The average outstanding balance is currently Rp 1 million
\n($76.9) per card,\" Malik said.<\/p>\n
There are 2.41 million cardholders in the country, with
\noutstanding accounts totaling Rp 2.41 trillion.<\/p>\n
The increase in missed payments has forced the card-issuing
\nbanks to take extra care when collecting bills from customers so
\nthat the number of nonaccrued bills remains at the normal rate of
\n1 percent to 2 percent, he said.<\/p>\n
\"They arrange payments or reschedule them so that the number
\nof nonaccrued accounts will not increase,\" he said.<\/p>\n
Nonaccrued bills are those which have not been paid for more
\nthan 180 days.<\/p>\n
Malik said the credit card issuers had also become more
\nselective in issuing new cards.<\/p>\n
One or two banks had stopped issuing new cards because of the
\ncurrent unfavorable state of the economy, he added.<\/p>\n
There are 23 local banks in the country which issue American
\nExpress, Diners Club, Visa and MasterCard cards.<\/p>\n
Habil said the number of transactions using credit cards in
\nthe country had reached 33.80 million a year, or about 13 to 14
\ntransactions a year for each card.<\/p>\n
The value of transactions using credit cards rose dramatically
\nlast year to Rp 20 trillion in 1997 from just over Rp 7 trillion
\nin the previous year.<\/p>\n
The increase was due to the rupiah's dramatic depreciation
\nagainst the U.S. dollar since mid-last year, he said.<\/p>\n
The country manager of Visa International, Ellyana Fuad, said
\nyesterday the value of transactions using Visa cards had risen 29
\npercent year on year to US$1.2 billion as of March this year.<\/p>\n
However, the number of transactions dropped 2 percent in the
\nsame period, Ellyana said without giving the figure.<\/p>\n
There are now 1.34 million Visa cards in Indonesia since it
\nwas launched in the country in 1983.<\/p>\n
Visa launched yesterday a consumer guide booklet for using the
\ncredit card which contains tips for cardholders on how to use
\ncredit cards wisely. (das)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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