WITH reference to “Credit card tax to encourage prudent spending” (Nov 24), I have been practising self-control since I first got my credit cards a long time ago.

Why punish me for the folly and recklessness of others? I own only two cards – a Mastercard and a Visa. Both come with an annual fee for which I enjoy a waiver if I spend a minimum stipulated sum a year. This sum is both reasonable and achievable through daily expenses like petrol, groceries, and at times eating out.

With the cards, I see no reason to carry much cash. I plan my expenses properly, i.e. spend only what I can afford. When my bills come, I pay the banks in full and don’t take advantage of the minimum payment. Being a good paymaster, my minimum allowable credit has been raised. I have never, however, used this facility.

The people who should be made to pay a service tax of RM50 are the ones who abuse the facilities. I know of people who advance money using their credit cards to gamble. There is one who owns 10 cards, advances RM2,000 from each – totalling RM20,000 – and then pays the minimum sum a month! Well, that’s 10 months’ gaji in advance!

Often, they refuse to pay, knowing banks cannot sue them for bankruptcy when the sum owed does not exceed RM10,000. What a way to get a loan!

Credit card companies should limit the number of cards issued to one person according to monthly income, expenditure, repayment and outstanding debt. A combined database of card companies would be a useful tool to weed out the poor paymasters. Default on one card should automatically render the other cards unuseable.

So dear government, why punish me?

Stanley Teoh
Petaling Jaya

Source: The Sun – November 26, 2009