Renewal fee on credit cards

Many consumers have several credit cards. We enjoy the waiver of the annual fee on the credit card for the initial few years.

We may not be aware about the expiry of this waiver period. They will renew it automatically and charge an annual fee (which can be quite hefty).

What can we do?

I suggest that you should check the expiry date with the credit card company and put a reminder in your diary or PDA. Prior to the expiry date, you should decide if you wish to renew it. If not, you can tell the bank.

Alternatively, you can write a letter to tell the bank that you do not wish to continue the card on its expiry.

I hope that the authority should require the issuing bank to get specific approval from the customer for introducing an annual fee on the expiry of the initial period. We should encourage fair business practice.

Questionable marketing practice

I read a news report about the following marketing practice:

* the bank sends a letter to offer you a credit line
* if you do not want it, you have to tell the bank
* if you do not opt out, the bank offers it to you
* the charge is waived for the first year
* in subsequent years, the bank automatically add the charge to your account
* it is quite a hassle to remove this unwanted facility

I hope that the authority can act strongly to stop this practice. Here are some of the difficulties faced by the consumer:

* the product brochure sent by the bank is complicated (not easy for consumer to understand)
* the terms may be unfair to the consumer (as it is written on a one-sided basis)
* the consumer may overlook the charge on this statement (for something that is not needed).

I hope that businesses can be runned ethically to serve consumers, and not to make profit at the expense of consumers.

Tribute to Dr Goh Keng Swee

THIS WAS FIRST POSTED SIX MONTHS AGO. AS THERE ARE LETTERS IN THE NEWSPAPER ABOUT THE CONTRIBUTION OF DR GOH KENG SEE, I AM RE-POSTING THIS BLOG.

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I wish to pay tribute to one great man, whose vision led to the formation of NTUC Income. He is Dr Goh Keng Swee, finance minister of Singapore in 1970.

After NTUC Income was formed, he served as chairman of the board of trustees for 10 years and provided the strategic direction that led to our success. I met Dr Goh when I joined NTUC Income in 1977 and worked under him for two years.

Dr Goh also served in various capacities in the government, including education minister, defence minister and deputy prime minister. He retired from government service about 15 years ago.

Dr Goh is now over 90 years old. He has not been well for some time. I wish to say a big "thank you" to Dr Goh, on behalf of nearly two million policyholders and their families.

Get good value products from an adviser

A few visitors commented that insurance agents sell products that give them the highest commission. These products many not meet the needs of their clients.

When I was CEO of NTUC Income, I made sure that all the products are designed to meet the following:

* have modest loadings for commission
* offer good value to the customers

The insurance agents (advisers) from NTUC Income are able to recommend suitable products to their clients, with the knowledge that the products give good value and provide a reasonable level of earnings for their sales effort. They earn more, by increasing their sales productivity.

I am happy to recommend the insurance advisers and products from NTUC Income to the general public. I know that the consumers will get a good deal.

If you visit this website, you can compare the front-end load of the endowment and investment-linked products between NTUC Income and the other insurance companies.

A small number of consumers are savvy and can make their investments without the help of an adviser. They do not need to take my advice anyway. My tips are for the general consumers.