In a relief for consumers during these hard times, credit card fees have started to go down. Metrobank and BPI have notified their customers on the reductions. Some loans that were repriced recently also carried lower interest rates.
In September, the central bank issued a memorandum that set a ceiling on interest and finance charges for credit cards.
Take note too that the BSP' benchmark interest rate, used by banks as a reference point, was cut by a total of 175 basis points since the start of quarantines last March. It is now at 2.25% from 4%.
And since policy rate cuts take some time before it is felt in the real economy (our wallets), it could take a couple of months before it reflects on credit card bills and mortgages.
Metrobank sent out Viber alerts to credit card holders informing them that the finance charge for all credit cards will be reduced to 2% starting Nov. 3. The monthly add-on interest rate was set at a maximum of 1%. Cash advance fee was set at P200.
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BPI said last week that finance charges, and cash advance monthly finance charges for credit cards will be lowered to 2% from 3.5%. Finance charges will still be applied from the posting date of the cash advance transaction, it added.