Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Saudi- Consumers wary of credit card trap  Join our daily free Newsletter

MENAFN - Arab News - 23/12/2013
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab News) A growing number of bank customers in the Kingdom have second thoughts about using credit cards such as Visa, Master Card and American Express. It is mostly people of limited income group who find it hard to repay the debt and fall into a debt trap.

Arab expatriate Muhammad Ali Yamani said the delay in repaying the credit had doubled or tripled his debt to his banks and has become a burden that he cannot afford to repay given his limited monthly income. This is a situation faced by many ordinary people.

Abdul Aziz Asiri, a Saudi, said he was thinking of limiting the use of the credit cards he received from different banks because they tempted him to buy things more than he actually needed by 50 percent.

"On many occasions the credit cards in my pocket tempt me to buy things which I would not have bought if the cards were not with me," Asiri told Arab News.

Saudi nurse Abeer Turkistani said even though 80 percent of her purchases are on credit cards, she never goes on a shopping spree.

Another Saudi, Khaled Al-Amoudi, said he was reluctant to use credit cards these days because some traders demanded extra charge for credit card payments in addition to monthly fees charged by the companies that issued the cards.

On the other hand, Secretary General of the Media and Awareness Committee of Saudi banking sector Talat Hafiz said only 1.5 percent of the total credit payments were in default. This is much lower than in other Arab countries or other parts of the world, a fact he attribtuted to the healthy credit policies of Saudi banks.

He said while credit cards have been in use in the Kingdom for the past two decades, credit purchases peaked at SR9.4 billion in 2008.

He added that while a fee of about SR70 is charged for issue of a credit card, the ATM cards are issued with no fees at all.

In the Saudi market, 12 local and 11 foreign banks are competing to get the largest market share for credit cards, he said.

He said the practice of any trader charging a fee for payment through credit card is illegal. Some traders' claim that they experience delay in getting the payment for credit card sales is not true as payments are made without any delay online.

A trader charging extra for credit card use is liable for penal action.

 


Arab News




  MENA News Headlines
 Oct 25 2014 - Qatar's inflation rate to hit 5.5 percentMENAFN
(MENAFN) Qatar's inflation rate in 2014 is expected to touch 5.5 percent due to steady rise in housing rentals, according to the finding of a research conducted by Standard Chartered, The Peninsula ...

 Oct 25 2014 - Flydubai launches two flights to TanzaniaMENAFN
(MENAFN) Dubai-based flydubai's inaugural flights to Dar es Salaam and Zanzibar touched down in Tanzania. The new routes further underline flydubai's rapid expansion in Africa, which has seen the ...

 Oct 25 2014 - UAE air cargo to grow 4.1 percent in 5 yearsMENAFN
(MENAFN) The International Air Transport Association (IATA) Airline Industry Forecast 2014-2018 shows that international freight volumes are expected to increase at a compound annual growth rate ...

 Oct 25 2014 - Qatar- QSL: El Jaish face Al Gharafa todayThe Peninsula
(MENAFN - The Peninsula) Third-placed El Jaish will seek to narrow the gap between them and two higher placed rivals - Lekhwiya and Al Sadd € when they take on Al Gharafa in the ninth round match of ...

 Oct 25 2014 - Somalia- Mogadishu port on development pathThe Peninsula
(MENAFN - The Peninsula) Camels are prepared for export at the loading dock at the seaport in Mogadishu. The Somali government's grand vision for Mogadishu port under its new Turkish managers sees ...

 Oct 25 2014 - Saudi Shias protest death sentencesThe Peninsula
(MENAFN - The Peninsula) More than 100 people protested in eastern Saudi Arabia yesterday to oppose death sentences against a Shia religious leader and seven others convicted after earlier ...

 Oct 25 2014 - Palestine defies US, issues statehood ultimatumThe Peninsula
(MENAFN - The Peninsula) Palestine's chief peace negotiator has laid out in the clearest terms yet plans to establish an independent Palestinian state within three years, even if it means ignoring ...

 Oct 25 2014 - Police kill six militants ahead of key Tunisian pollThe Peninsula
(MENAFN - The Peninsula) Tunisian police killed six suspected militants, five of them women, in a raid on a suburban house yesterday after a 28-hour standoff, fanning tensions ahead of a landmark ...

 Oct 25 2014 - US looking into possible chlorine gas attack in Iraq: KerryThe Peninsula
(MENAFN - The Peninsula) The United States is looking into reports that Islamic State fighters used chlorine gas against Iraqi security forces, US Secretary of State John Kerry said yesterday.Kerry, ...

 Oct 25 2014 - Qatar- Ooredoo marathon offers QR1m prizesThe Peninsula
(MENAFN - The Peninsula) Registration for Ooredoo Doha Marathon 2015 is open, as the company begins preparations to ensure its biggest event yet on January 9.It will provide an opportunity to meet ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help