Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

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

MENAFN - Arab News - 24/12/2013
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
 Dec 22 2014 - Kuwait- Al-Azemi wins endurance horse raceArab Times
(MENAFN - Arab Times) KUWAIT CITY Dec 21 (KUNA): Female equestrian Abrar Al-Azemi won the 'Al-Qudra wa Al-Tahammul' (capability and endurance) horse race held on Sunday as part of the Kuwait's Fifth ...

 Dec 22 2014 - Saudi Kuwait say no oil output slash even if non-OPEC nations doArab Times
(MENAFN - Arab Times) ABU DHABI Dec 21 (AFP): The Saudi and Kuwaiti oil ministers said Sunday that their countries would not cut oil production even if non-OPEC members reduce their output to shore ...

 Dec 22 2014 - Kuwait: 1760 illegal residents get drivers' licenses in '14Arab Times
(MENAFN - Arab Times) KUWAIT CITY Dec 21 (KUNA): A total of 1760 drivers' licenses were issued for illegal residents in the first nine months of 2014 the Central Agency for Remedying Illegal ...

 Dec 22 2014 - Iraq premier thanks Kuwait for compensation defermentArab Times
(MENAFN - Arab Times) KUWAIT CITY Dec 21 (KUNA): Visiting Iraqi Prime Minister Haider Al-Abadi expressed his gratification at the Kuwaiti government's acceptance to defer Iraq's payment of ...

 Dec 22 2014 - Saudi King's bid to heal Qatar-Egypt ties hailedArab Times
(MENAFN - Arab Times) KUWAIT CITY Dec 21 (KUNA): His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah on Saturday sent a cable to Saudi King Abdullah bin Abdulaziz Al Saud to congratulate ...

 Dec 22 2014 - Kuwait- Al-Sanea opens Awqaf Forum on 'behalf' of Crown PrinceArab Times
(MENAFN - Arab Times) KUWAIT Dec 21 (KUNA): Minister of Justice and Minister of Awqaf and Islamic Affairs Yaqoub Al-Sanea on Sunday said stability of legislative and executive powers led to achieving ...

 Dec 22 2014 - Kuwaitis to visit UK easily via e-visa by 1st half 2015Arab Times
(MENAFN - Arab Times) KUWAIT CITY Dec 21 (KUNA): The Kuwaiti-British committee tasked with bolstering bilateral relations was due to hold a meeting in Kuwait last week but it was delayed till early ...

 Dec 22 2014 - UAE- Watch: A spacecraft's trial by fire as it returns to EarthKhaleej Times
(MENAFN - Khaleej Times) The video begins 10 minutes before Orion's splashdown in the Pacific Ocean just as the spacecraft was beginning to experience the Earth's atmosphere. New York: A video ...

 Dec 22 2014 - UAE- Video shows Boko Haram killing captivesKhaleej Times
(MENAFN - Khaleej Times) Boko Haram militants have released a new video showing gunmen mowing down civilians lying face down in a dorm googletag. A new video from Nigeria's home-grown Boko Haram ...

 Dec 22 2014 - UAE- Kate Winslet in Jobs movieKhaleej Times
(MENAFN - Khaleej Times) Given the pedigree of the pic its no surprise Winslet was drawn to the role. Kate Winslet is in negotiations for the female lead in Universal’s Jobs the biopic of the ...

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

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

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
Economic Calendar
Financial Glossary


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


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help