CODE OF

CONSUMER
BANKING
PRACTICE
 CONTENTS
I. ABS Preamble 3

II. Code of Consumer Banking Practice 4

1. Introduction 4

2. Objectives 4

3. Key Commitments 5

4. Service Standards 6

5. Information 7

6. Being a Guarantor 8

7. Marketing and Promotions 8

8. Basic Banking Services 9

9. Terms and Conditions 9

10. Accounts 10

11. Bank Products 11

12. Interest 14

13. Fees and Charges 17

14. Channels of Communication 18

15. Debt Recovery 19

16. Complaints - Dispute Resolution Process 21

III. Appendix I 25

What you can do to help your

bank serve you better:

1. Update Your Contact Information 25

2. Protect Your Accounts 25

IV. Appendix II 28

Questions to ask your bank when

considering its products & services:

1. Fixed Deposits 28

2. Loans 28

3. Credit Cards 31

4. Unit Trusts 32

5. Bancassurance 33

V. Appendix III 34

Questions you should ask yourself or the bank

when considering becoming a guarantor:

VI. Appendix IV 35

Useful Definitions of Banking Terms

With effect from : November 2009

Last revised : November 2016
PREAMBLE

This is an update of the Code of Consumer Banking Practice which

was introduced in September 2002 as a voluntary initiative of the
banking industry.

As customers’ needs change and the banking industry evolves, the

Code has to be updated to reflect these developments. This ensures
that the Code remains a relevant best banking practice guide for the
retail banks, and that retail customers continue to be treated fairly and
reasonably at all times.

With the collapse of Lehman Brothers and the global financial melt-
down that followed, banks in Singapore face challenges ahead. Foremost
is the preservation of the banks’ relationships with their customers. The
five principles on which this Code is premised – Accountability, Fairness,
Privacy, Reliability and Transparency – will establish the bedrock for
building a fair and cordial relationship between you and your bank.

This Code keeps the customer’s interests in mind. The banking industry
is committed to delivering standards of practice no less than those
stated in the Code. At the same time, it is our hope that by describing
such standards clearly, this Code will foster a better understanding of
what you the customer can reasonably expect of your bank.

Mrs Ong-Ang Ai Boon

Director
The Association of Banks in Singapore

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 CODE OF CONSUMER BANKING PRACTICE

1. Introduction
This Code outlines the minimum standards of good banking
practice which you, the customer, can expect from your bank.
Members of The Association of Banks in Singapore (ABS) which
offer financial services to individual customers must comply with
this Code.
A voluntary initiative by the banking industry, this Code was
introduced in September 2002 and revised in June 2007. As
customers’ needs and banking practices evolve, this Code will be
reviewed and revised regularly. The most up-to-date version of
this Code is always available on the ABS’ website.
All member banks also subscribe to the Code of Practice for Banks
– Credit Cards1, Code of Advertising Practice for Banks2 and
Telemarketing Guidelines for the Financial Industry3.
This Code also contains an outline of the formal structure and
process available to resolve disputes between banks and their
retail customers at The Financial Industry Disputes Resolution
Centre Ltd (FIDReC).

2. Objectives
This Code aims to:
a. promote good banking practices by setting minimum standards
for your bank;
b. increase transparency so that you can have a better
understanding of what you can reasonably expect of the
services provided;
c. build a fair and cordial relationship between you and your bank;
d. foster confidence in the banking system; and
e. encourage a corporate culture of fair dealing and the
achievement of fair dealing outcomes at your bank.

1 Code of Practice for Banks – Credit Cards can be found at http://www.abs.org.sg

2 Code of Advertising Practice for Banks can be found at http://www.abs.org.sg
3 Telemarketing Guidelines for the Financial Industry can be found at http://www.ccas.org.sg

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3. Key Commitments
Your bank’s relationship with you will be guided by five key
principles:
a. Accountability:
Your bank promises that:
i. all its products and services meet relevant laws and regulations
of Singapore;
ii. its procedures in promoting products and services
comply with this Code;
iii. it will explain and help you understand the financial
benefits of its products and services that you are
interested in, how they work and the risks involved.
b. Fairness:
Your bank promises to:
i. act fairly and reasonably in all its dealings with you,
applying the Monetary Authority of Singapore’s
Guidelines on Fair Dealing – Board and Senior
Management Responsibilities for Delivering Fair Dealing
Outcomes to Customers;
ii. not unfairly rely on its contractual rights to hold you
completely responsible for liabilities incurred on forged
cheques if you have established that you have not by
your acts or omissions (directly or indirectly) caused or
contributed to the occurrence of the liabilities;
iii. ensure that all the products and services offered comply
with the Code and are suitable for the target customer
segments;
iv. establish a clear and common set of procedures to
ensure that any dispute between you and your bank
will be resolved fairly and quickly.
c. Privacy:
Your bank promises to:
i. treat all your personal information as private and
confidential;
ii. comply at all times with the Banking Secrecy provision
of the Banking Act (Cap.19);
iii. stop using your personal information for its own marketing
purposes if you inform your bank that you object to this
practice;
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 iv. provide your personal particulars and your loan profile
to Credit Bureau (Singapore) Pte Ltd (http://www.
creditbureau.com.sg) and/or DP Credit Bureau Pte Ltd
(http://www.dpcreditbureau.sg) which are recognised
by the Monetary Authority of Singapore and gazetted
under the Banking Act;
v. not contact you on an unsolicited basis, whether directly
or through telemarketers, if you have requested to be
placed on the “Do-Not-Call” list maintained by your
bank.
d. Reliability:
Your bank promises to:
i. have a secure and reliable banking system, including
security controls for its self-service banking channels;
ii. keep your records and transactions confidential and
accurate;
iii. provide up-to-date information.
e. Transparency:
Your bank promises to:
i. provide you with clear, relevant and timely information
to help you make informed decisions about its products
and services;
ii. highlight major points (including disclosure of conflicts
of interest) concerning the products and services that
you are interested in and provide clarifications where
necessary;
iii. inform you, through various delivery channels (e.g. over
the internet and telephone or at branches), of available
products and services. These are the same channels
through which you can contact your bank for information
or provide feedback.

4. Service Standards
Your bank will ensure that:
a. its staff are trained to handle your transactions promptly and
efficiently to minimise your waiting time;
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 b. ATMs and any other self-service banking channels are
available both day and night, except when maintenance
makes them temporarily unavailable;
c. information on its products and services is current and easily
available at its branches and through its website and other
customary channels;
d. its internet banking and e-banking services comply at all
times with the MAS guidelines issued on 2 June 2008 on
“Internet Banking and Technology Risk Management”;
e. you are informed 30 days before implementation of any
changes to the Terms and Conditions, fees and charges and
discontinuation of services/relocation of premises (see
Sections 9 & 13);
f. a contact point is available to handle your queries and
concerns, and that its officers respond to your feedback
promptly;
g. your complaint is acknowledged within 2 business days of
receipt and investigated. You will be told of the status of the
investigation within 14 business days. (Complaints requiring
investigation by a third party may take longer);
h. a dispute resolution process is in place to ensure all complaints
can be dealt with in an independent, effective and prompt
manner (see Section 16).

5. Information
a. Before you choose a product or service, your bank will provide
clear, relevant and timely information to enable you to make
informed financial decisions. Your bank will:
i. explain clearly the key features and risks of the range
of products and services that you have indicated interest
in;
ii. state in clear and plain language, the salient terms and
conditions, including any charges;
iii. ask for information and documentary proof to validate
your eligibility.

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 b. Please refer to Appendix II items 1 – 5 for some questions
you should ask your bank when considering the following
products and services:
i. fixed deposits;
ii. loans;
iii. credit cards;
iv. unit trust funds;
v. bancassurance products.
c. After your bank has provided you with the information you
seek, you are not obliged to buy the product or service. You
may also wish to seek your own financial and legal advice
before proceeding.
d. Once you have chosen a product or service, your bank will:
i. give you a copy of the terms and conditions, where
applicable, for your consideration and acceptance;
ii. inform you of applicable charges, fees or additional
interest you will have to bear should you decide on early
termination of any contract (e.g. early repayment of a
housing loan or early withdrawal of fixed deposits).

6. Being a Guarantor
Being a guarantor is a serious commitment which could have
significant consequences for you. Some questions you should
consider when asked to be a guarantor can be found in
Appendix III.
Note that:
i. the bank to which you will be giving the guarantee has
to advise you in writing of the quantum and nature of
your liabilities in advance;
ii. you should seek independent legal advice before you
agree to be a guarantor.

7. Marketing and Promotions

Your bank promises:

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 a. to exercise care in using direct mail:
i. to customers below 16 years old;
ii. when promoting loans, overdrafts and other credit
facilities.
b. that all its advertising and promotional materials:
i. comply with all relevant and applicable legislation, codes
and rules to be fair and balanced (see also Code of
Advertising Practice for Banks and Telemarketing
Guidelines for the Financial Industry);
ii. are not misleading and accurately reflect the product /
service being advertised. Where appropriate, the risks
and returns involved will be highlighted clearly;
iii. are written in plain language and consistent with the
need for legal certainty. Legal and technical language
will be used only when it is unavoidable;
iv. for banking services which refer to an interest rate, will
include the Effective Interest Rate (EIR) (if the two rates
are different), other relevant fees and charges.

8. Basic Banking Services

a. The major retail banks are committed to provide affordable
basic banking services through the provision of a basic
banking account.
b. The bank will be able to provide you with the conditions and
details for operating a basic banking account.

9. Terms and Conditions

a. Your bank promises that:
i. where applicable, a set of Terms and Conditions relating
to each banking service will be made readily available
to you, with all the fees, charges, penalties and relevant
interest rates, your liabilities and obligations in the use
of a banking product or service highlighted;
ii its staff will be available to answer queries you may
have concerning the Terms and Conditions;

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 iii. the Terms and Conditions provide a fair and balanced
description of the relationship between you and your
bank;
iv. plain language will be used to the extent that it is
consistent with the need for legal certainty. Legal and
technical language will only be used when unavoidable;
v. its operations are in line with the regulatory framework
and guidelines as set out by the Monetary Authority of
Singapore or Ministry of Finance and all other regulatory
authorities.
b. Your bank promises to:
i. notify you of any changes in the Terms and Conditions
governing the product or service through an appropriate
channel (see Section 14);
ii. give you 30 days’ notice, in the absence of any
contractual agreement to the contrary, before any
variation to the Terms and Conditions relating to
customers’ fees and charges and the liabilities or
obligations take effect;
iii. provide a written summary of the key features of the
revised Terms and Conditions, if the variation is
substantial or the changes are complicated;
c. If you do not wish to accept the variation to the Terms and
Conditions:
i. you may terminate the banking service, subject to the
existing applicable Terms and Conditions; and
ii. upon your request to lower / waive applicable fees,
charges or penalty in the termination of banking services,
your bank will consider your request reasonably, but
exercise its sole discretion whether or not to lower /
waive such fees, charges or penalty.

10. Accounts
a. Opening Accounts

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 i. Your bank has to satisfy itself about the identity of the
person seeking to open an account in order to protect
its customers, the public and itself against misuse of
the banking system. Hence, you will need to provide
your bank with the identification documents when
opening an account.
ii. Your bank will, upon request, inform you what documents
you need to provide.
b. Operation of Accounts
Your bank will provide monthly statements of your accounts,
unless otherwise stated in the Terms and Conditions.
However, the product feature of the account – for example
passbook accounts – may exclude the provision of such
statements.
c. Closing Accounts
i. You or your bank may close an account at any time,
subject to the specific Terms and Conditions governing
the closing of accounts;
ii. Your bank will not close your account without giving
reasonable notice except under exceptional
circumstances, for example, where the bank has
reasonable suspicion that an account is being used for
criminal activity.

11. Bank Products

a. Loans
Before taking up a loan, you may wish to:
i. refer to the ABS’ publication “Loans and You” or your
bank’s website to obtain information on loans and loan
products;
ii. request your bank to give you the Customer Information
Sheet (see Appendix II item 2) or an equivalent
document with the information relevant to the loan
product.
iii. Your bank may use one or more of the following criteria
to assess your loan application:

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 i. income and financial commitments
ii. prior knowledge of your financial affairs
iii. information obtained from credit reference agencies
iv. credit assessment techniques such as credit scoring
v. security provided, if any
b. Housing Loans
i. Before taking up a housing loan, you are encouraged
to refer to the ABS-MoneySENSE consumer guide
“What you need to know about home loans – Key
questions to ask your bank before taking a home loan”.
You may request a copy from your bank or read it online
at http://www.abs.org.sg;
ii. Your bank will comply with ABS Guidelines on Home
Loans. These guidelines apply to loans taking effect
from 15 June 2007 onwards. Under these guidelines,
your bank will provide you with clear disclosures on the
use of home loan board rates, the financial indicator(s)
against which these rates are benchmarked, and the
basis for the change in the rates over time;
iii. You must buy insurance to protect the mortgaged
property against risks. Your bank will advise you on the
amount of coverage required and will not insist that you
use any particular insurance company. If you choose
to insure with a company not on the bank’s panel of
insurance companies, your bank may levy a fee. If it
does so, it will provide you with an explanation for the
charge;
iv. Your bank will provide you with revised instalment
amounts payable after every adjustment of the interest
rate.
c. Unsecured Credit Facilities / Loans
i. Your bank may offer unsecured credit facilities to
borrowers with minimum annual income of $20,000.
ii. Ask your bank for the Customer Information Sheet
(see specimen on page 29) with the relevant information
when considering taking up unsecured terms loans with
your bank.

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 iii. Banks will determine the credit limits based on the
borrowers’ annual income as follows:
(1) Annual income of $120,000 and above or net
personal assets of more than $2 million:
(a) No stipulated cap on credit limit;
(b) Banks have discretion to determine the credit
limit for unsecured credit and/or credit cards
subject to MAS’ satisfaction that the banks’
credit evaluation and credit risk management
practices are sufficiently robust to effectively
monitor and manage credit risk.
(2) Annual income of $30,000 and above:
(a) Credit limit for unsecured credit and credit
cards will be capped at four times’ monthly
income.
(3) Annual income of $20,000 to $30,000:
(a) Credit limit for unsecured credit will be capped
at two times’ monthly income.
iv. Banks may offer unsecured credit facilities in the form
of a:
(1) revolving credit facility with minimum monthly
repayments;
(2) term loan with monthly instalments to be repaid
over a fixed tenor.
d. Unsecured Credit Cards
The minimum annual income requirement for unsecured
credit cards is:
i. $30,000 for individuals aged 55 years or below; and
ii. $15,000 for individuals aged above 55 years (credit limit
will be capped at two times’ monthly income).
e. Investment Products

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 Before investing, you are encouraged to refer to the following
consumer guides:
i. MoneySENSE consumer guide on “Key Questions You
Should Ask Yourself Before Buying an Investment
Product”.4
ii. MoneySENSE consumer guide on “Key Questions to
Ask the Person Recommending an Investment Product
to You”.5
iii. ABS-MoneySENSE consumer guide on “What you
should know about investment products”.6
f. Bancassurance products
These have varying features, benefits and coverage. For
a basic policy, you should ask the questions listed in Appendix
II item 5 to ensure you have a clear understanding of the
product.
g. Bonds
For transactions where the Bank receives rebates for the
sale or distribution of primary issuance of bonds, it should
specifically disclose such benefits to the customer prior to
or at the point of sale.

12. Interest
Interest is charged by banks for the use of the money lent to you.
Interest is also paid when banks accept an interest-bearing deposit
from you. Not all deposits earn interest.
a. Interest-bearing deposits
Your bank will:
i. inform you of the applicable interest rates for the
contracted period and the basis and frequency at which
interest will accrue;
ii. explain the formula used to compute the interest payable,
e.g. daily or monthly;
iii. inform you of the total amount you will receive on your
fixed deposits;

4 Available online at http://www.moneysense.gov.sg

5 Available online at http://www.moneysense.gov.sg
6 Available online at http://www.moneysense.gov.sg or http:www.abs.org.sg

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 iv. notify you of any changes in interest rates within the
stipulated period as appropriate for that product or
service (see Section 14 for how you will be notified of
the changes).
b. Fixed deposits
i. Money is placed with a bank for an agreed period of
time at a contractual interest rate subject to withdrawal
or renewal on a specific maturity date.
ii. Withdrawal before maturity is usually permitted. However,
there could be penalties such as a charge. Payment
of any interest on the prematurely withdrawn amount
varies from bank to bank.
iii. Ask your bank to explain its policies on charges and
interest payments before making a decision.
iv. See Appendix II item 1 for what questions you should
ask. See also 13d.
c. Foreign currency deposits
Your bank will:
i. highlight the inherent exchange rate risks and exchange
controls (if any) applicable to holding such deposits;
ii. advise you before you open such an account that returns
on deposits would depend on the exchange rate
prevailing at the time of their maturity if any conversion
of currency takes place.
There are inherent risks involved in any investment, such
as foreign exchange risk, sovereign risk and interest rate
fluctuations. For example, for foreign currency deposits or
loans, adverse exchange rate movements could erase the
deposit interest earnings completely, reduce the original
capital amount or increase the quantum of loan payment
substantially.
d. Loans
Your bank will:
i. inform you of the applicable interest rates for the
contracted period and the basis and frequency at which
deductions are to be made;
ii. explain the formula used to compute interest rates, e.g.
daily or monthly;

15
 iii. inform you of the total amount (principal plus interest)
you have to pay for your loans;
iv. where applicable, disclose both the nominal and the
effective interest rates as the two rates may be different
depending on what formula was used to calculate the
interest on the loan7;
v. notify you of any changes in interest rates within the
stipulated period as appropriate for that product or
service (see Section 14 on how you will be notified of
the changes).
e. Interest rates for loans can either be:
i. fixed, e.g. at 3.75% per annum, meaning that the
interest rate remains the same throughout the
period of the loan; or
ii. variable, meaning the interest rate is subject to
change. It could be pegged to the bank’s prime
rate, e.g. prime + 2% per annum and will change
when there is a change in the prime rate. It could
be set as a consumer board rate for some loans
such as housing loans and unsecured credit line
facility.
See Appendix II item 2 for the information your bank
will provide when you are enquiring about a loan.
Where the interest rate for a loan can be varied by your
bank and where the interest rate is dependent on a
reference rate, your bank will disclose the financial
indicator(s) against which the reference rate is
benchmarked when you enquire about the loan.
When making changes in the interest rates for such
loans, your bank will explain why the rates need to
change e.g. changes in market conditions and / or
changes in the financial indicators against which the
reference rates are benchmarked.

7 For more information on the effective interest rate for home loans, consumers can refer to the ABS consumer
guide on home loans
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13. Fees and Charges
Costs are incurred when your bank provides various services to you.
Charges and fees are levied for these services.
a. For all charges and fees levied, your bank will:
i. provide you with a schedule of fees and charges
(including commissions payable) for the service or
product that you have chosen;
ii. display its standard fees and charges at all its branches
or other appropriate channels;
iii. inform you of the basis of charges for services rendered
which are not part of the standard fees and charges at
the time the services are offered or on request;
iv. inform you of any additional charges or expenses that
you have to pay such as search fees to retrieve available
past records and the reasons for the charges;
v. inform you of the remuneration earned by the bank for
sales of investment products;
vi. notify you at least 30 days before any change in fees
and charges take effect as well as any change in the
basis on which the fees and charges are determined
so long as these changes are within your bank’s control.
b. In some instances, third party charges are involved.
You should know that there are some charges which are not
levied directly by your bank but arise when another bank,
financial institution, party or parties is / are needed to complete
or settle your transaction. Your bank may not know in advance
nor be able to advise you of the actual charges the third party
may levy on you.
However, where possible, your bank will:
i. inform you of the relevant service and applicable charges;
ii. advise you of charges (e.g. if you choose to withdraw
foreign currency funds from third party cash machines
overseas using any bank-issued cards);
iii. highlight to you that these agent’s fees may reduce the
amount due to you and your beneficiary.

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 c. Note that:
i. your bank may not always be able to advise you of
charges and commissions in advance, e.g. foreign
exchange commission and other charges, levied by its
agent banks;
ii. you will incur commission, collection and other charges
when you bank in a foreign currency cheque over the
counter or through the cheque deposit box. These
charges will reduce the amount that you will ultimately
receive.
d. Charges For Early or Premature Termination
When you place a fixed deposit or take up a loan facility with
your bank, charges may be levied if you break the deposit
or repay the loan in full prematurely. This is because in most
cases, your bank would have taken a corresponding
commitment on your deposit / loan with a counter-party and
may have to cover the cost of its own commitment.

14. Channels of Communication

a. From time to time and when necessary, your bank will notify
you of changes to the following:
i. Terms and Conditions
ii. Fees and Charges
iii. Interest rates
iv. Planned discontinuation of service
v. Relocation of premises
b. Your bank will communicate these changes to you through
any of these appropriate channels:
i. account statements
ii. its ATMs
iii. its branches
iv. the Internet, including its website or through e-mail
v. letters

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 vi. the newspapers
c. Should you need clarification on these changes:
i. call your bank’s hotline
ii. ask your bank’s staff at its branches
iii. write to your bank; or
iv. e-mail your bank

15. Debt Recovery

a. When you take up a loan or credit facility, you would have
agreed to repay the loan or amount outstanding. If
subsequently you find yourself in financial difficulties and are
unable to repay, the bank has the right to take steps to
recover the amount owing. If you find yourself in financial
difficulties, the following may happen:
i. Your bank contacts you to discuss the matter and will
do all it can to help you overcome your difficulties. Do
not ignore your bank’s calls;
ii. You contact your bank as soon as possible to work out
a repayment plan.
The sooner you approach your bank, the easier it is for a
plan to be worked out, and the more information you provide,
the more realistic the plan will be.
b. In the course of recovering the debt from you:
i. Your bank will not incur unreasonable costs and
expenses;
ii. Your bank may be entitled to offset the outstanding
amount owing with any credit balances in your other
accounts, including your deposit account with the bank;
iii. Upon request, your bank will provide a detailed
breakdown of the costs and expenses;
iv. Your bank will not try to recover debt from third parties
including your referees, family members or friends
unless these persons have signed a formal agreement
to be your guarantor.

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 c. Adherence to Laws, Rules and Regulations:
i. Collection activities by or on behalf of your bank will
at all times comply with all applicable laws, rules and
regulations;
ii. All forms of communications used by the appointed
collection companies or the bank’s collections
department (e.g. letters, pre-written scripts or SMS) will
adhere to the Bank’s standard / practice;
iii. Borrowers’ repayment conduct will be reflected in the
borrowers’ credit bureau report.
d. Borrowers to be treated with dignity and respect:
i. Your bank will, as far as possible, limit its calls to certain
times and places. If a message has to be left, its contents
will be limited to the information required for you to
return the call;
ii. Collections efforts will include providing information on
options to establish a debt repayment schedule, taking
into account your financial situation;
iii. Collectors will respond in a timely manner to any
reasonable requests for information or clarifications;
iv. Collectors will not use collection methods that may
embarrass you or put you at risk of losing your job, for
example calling or writing to your employer;
v. If the borrower does not respond or is not contactable,
the bank will contact the guarantor.
e. Conduct of Collectors:
The collectors will:
i. be respectful and professional when communicating
with you;
ii. be appropriately dressed when meeting you and will
always carry appropriate identification and explain the
purpose of the meeting;
iii. accurately explain to you the impact of non-payment
whether communicating verbally or in writing;

20
 iv. protect the privacy by ensuring that information of your
indebtedness is not shared with a third party unless
specifically authorised by you or required by applicable
law.
16. Complaints - Dispute Resolution Process
Your bank is committed to providing you with a high level of
service. However, there may be occasions when complaints and
disputes arise. In this instance, the Code specifies a structured
process for your complaint to be dealt with in an independent,
effective and prompt manner.
a. Principles
The underlying principles for dealing with your complaints
are:
Sincerity - Your complaint is important feedback and
the bank will treat it seriously
Transparency- The procedures for handling complaints are
documented and apply to all customers
Effectiveness - The procedures will provide for a speedy
resolution
b. Raising A Complaint
If you have an issue to raise or are dissatisfied with a particular
service with your bank, there are three steps you can take:
Step One
Contact your bank by:
• calling the bank’s hotline
• e-mailing the bank
• writing to the bank
• speaking directly to the bank staff serving you
You need to provide your bank with the details of your specific
complaint and supporting documents to help expedite matters.
On its part, your bank will ensure that:
i. all staff who deal directly with customers are familiar
with the complaint procedures and are able to give you
correct information about these procedures;
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 ii. it acknowledges your complaint within 2 business days
of receiving it;
iii. it investigates your complaint and informs you of the
status of its investigation within 14 business days of
receiving your complaint (Complaints requiring
investigation by a third party may take longer);
iv. an independent officer in the bank is empowered to
handle the complaint.
Step Two
If you are dissatisfied with the outcome of Step One, you can
contact the Quality Service Department of your bank. Its officers
are empowered to handle your complaint objectively. It will:
i. give you a written response within 14 business days
of the appeal;
ii. inform you of any further action you can take which will
include going to an independent and impartial third
party, The Financial Industry Disputes Resolution Centre
Ltd (FIDReC).
If your bank breaches any of the provisions in this Code, you
should email The Association of Banks in Singapore (ABS) at
banks@abs.org.sg. Alternatively, you may write in to The Director,
ABS at 10 Shenton Way, #12-08 MAS Building, Singapore 079117.
Your bank will respond directly to you within 14 business days
of receipt of feedback from ABS.
Step Three
If you are still dissatisfied with your bank’s response, after dealing
with the Quality Service Department at the bank, you can approach
FIDReC, which is the dispute resolution centre for the whole
financial industry.
The dispute resolution process of FIDReC comprises:
- Mediation (1st Stage)
- Adjudication (2nd Stage)
Mediation (1st Stage)
When a complaint is first received, it is case managed by FIDReC's
Case Manager. The complainant and the financial institution are
encouraged to resolve the claim / dispute in an amicable and fair
manner. For appropriate cases, the Case Manager mediates the
dispute between the parties. This service is free of charge for
consumers.
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Adjudication (2nd Stage)
If the dispute is still not resolved after mediation, the complainant
may then choose to take his or her case further by referring the
dispute to a FIDReC Adjudicator or a Panel of Adjudicators.
Consumers pay a nominal administrative fee of S$50 when their
cases proceed for adjudication, and the financial institution pays
S$500. The decision of the Adjudicator or Panel of Adjudicators
is final and binding on the financial institution, but not on the
consumer. If the consumer is not happy with the decision, he or
she is free to reject the decision and pursue his or her claim
through other avenues.
d. Scope of FIDReC
i. The jurisdiction of FIDReC in adjudicating disputes
between consumers and financial institutions is as
follows:
aa. The jurisdiction of FIDReC in adjudicating disputes
between consumers and financial institutions is
up to $100,000 per claim for all claims;
bb. FIDReC will allow claims above the stated limits
to be heard if either (i) the financial institution
agrees to allow FIDReC to hear the claim, or (ii)
the complainant agrees to limit his claim to the
stated claim limits.
FIDReC’s services are available to all consumers who are
individuals or sole-proprietors.
ii. The following complaints cannot be brought before FIDReC:
aa. commercial decisions;
bb. pricing policies and other policies such as interest
rates and fees;
cc. cases under investigation by any law enforcement
agency;
dd. cases concerning principal agent issues;
ee. complaints that are more than six months old after
the affected Financial Institution’s final reply; and

23
 ff. cases which have been subjected to a court hearing
and for which a judgment and / or order has been
passed.
e. Supervision of FIDReC
FIDReC is an independent organisation with a Board of seven
directors chaired by retired Supreme Court Judge and includes
three consumer directors and three industry directors. The
composition of the Board ensures FIDReC’s independence,
fairness, accessibility and transparency. FIDReC was created to
ensure balanced representation for consumers and the financial
sector.
For more information about FIDReC, please visit http://www.fidrec.
com.sg.

24
 Appendix I

WHAT YOU CAN DO TO HELP YOUR BANK SERVE

YOU BETTER:
1. Update Your Contact Information
Inform your bank immediately of any change in your postal and
e-mail addresses or telephone numbers.
Note that if your bank sends you a letter to your last known address
informing you of any changes relating to its operations or your
account, it will be considered as notice given and received.
2. Protect Your Accounts
Your bank endeavours to make banking more and more convenient
for you by expanding its self-service facilities and harnessing the
latest technologies while ensuring that its systems are reliable
and secure.
Such security also relies on your co-operation.
a. Keep your ATM card safe and secure
b. Keep your Cheque Book / Passbook in a safe and
locked place when you are not using them.
i. When drawing cheques:
ÿ never pre-sign your cheques;
ÿ never use Company rubber stamps as part of your
signing mandate;
ÿ never use Facsimile Signatures on your cheques
because the transmitted image of a Facsimile
Signature is not acceptable as a security feature.
ii. Write your instructions on cheques using indelible dark ink
(e.g. black or navy) but not red / light / fluorescent ink. You
may also use a Cheque Writer / Franking Machine with dark
colour ribbon (e.g. black or navy).
iii. Write your cheque in such a way as to prevent unauthorised
insertions, e.g. rule off any blank space after the payee’s
name and always insert the word “only” after the amount in
words.
iv. You may use “A/C payee” rubber stamps with dark ink.

25
 c. PIN
Keep your PIN or password (for ATM, phone-banking, internet
banking, e-banking, mobile banking services and wireless
banking) secure.
i. You should :
ÿ never allow anyone to use your card, know your
PIN or any other security information;
ÿ never write and / or keep record of your PIN
together with your card;
ÿ never use easy-to-remember dates or numbers
like your NRIC number or birthday as your PIN or
password.
ii. Memorise your PIN and other security information and
destroy the initial notification from your bank immediately.
iii. Change your PIN or password periodically.
iv. Shield the key pad when keying in your PIN to prevent
it from being seen.
d. Mobile Phones / Personal Computers
Safeguard your on-line devices such as mobile
telephones and personal computers (PC) against
unauthorised access.
e. Internet Banking
For Internet banking, here are some ways to protect
your computer against viruses and malicious programs:
i. You should:
ÿ never store your user ID / PIN in the Internet
Explorer Browser;
ÿ never use shared / public PCs for Internet
Banking;
ii. Install security programs to protect against hackers,
virus attacks or malicious ‘Trojan Horse’ programs.
Update the software’s virus definition frequently;

26
 iii. Disable the ‘File and Print Sharing’ feature on your
operating system. This will prevent an external
party from gaining illegal control or access to your
PC. Refer to your PC manual for instructions on
how to do this;
iv. Log off your PC when not in use;
v. Check your bank account and transaction history
regularly.
f. Others
i. Inform your bank immediately by calling its 24-
hour phone service if your passbook, card or
cheque book is lost or stolen;
ii. Change your PIN, password and any other security
information and inform your bank, once you suspect
someone has such information.

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 Appendix II

QUESTIONS TO ASK YOUR BANK WHEN

CONSIDERING ITS PRODUCTS & SERVICES
1. FIXED DEPOSITS
a. Premature Withdrawals
If I need to prematurely withdraw my fixed deposit, will the
bank pay the interest for the period my money was placed
with it? If so, how will the interest be computed?
b. Charges
What are the penalties or charges I have to pay, if any, for
prematurely withdrawing my fixed deposit from the bank?
c. Rollover of Fixed Deposits
If my fixed deposit matures and I leave it in the bank, will
the bank pay me interest on my money for the period until I
withdraw it?
d. Withdrawals
What identification/s do I need to present when I withdraw
my fixed deposit?
e. Loss of Fixed Deposit Receipt
What happens if I lose the original fixed deposit receipt?
f. Public Holidays
What happens if the maturity date falls on a public holiday?

2. LOANS
a. Ask your bank for the Customer Information Sheet
(see specimen below) with the relevant information
when considering taking up a loan.
b. Before committing to a loan, you are encouraged to
read the ABS-MoneySENSE consumer guide on "Key
questions to ask your bank before taking a home loan"
before committing to a home loan. The guide is available
online at http://www.abs.org.sg.

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 CUSTOMER INFORMATION SHEET

This sheet is for information only. It sets out the current main costs and charges
for the facility required and these are subject to change at the Bank’s discretion.
Please note that this does not constitute an offer of any facility by the bank.

Bank Name/Logo Name of Enquirer: _________________

1. Branch: _________________ Type of Facility : _________________

LOAN AMOUNT AND BANK INTEREST/CHARGES

2. Amount applied for (Principal sum) $_____________

3. (Less: lst instalment/interest paid upfront) ($____________)

4. Net amount received by customer $_____________

5. Applied Rate _________% p.a.

6. Effective Interest Rate _________% p.a.

7. Payment Per Month $_____________

8. Number of Repayments ______________

9. Total Interest $_____________

10. Processing Fees $_____________

11. Other Bank Fees/Charges (please specify, if any)

________________________________________ $_____________

12. Total Fees/Charges (line 10 + line 11) $_____________

13. Total Interest plus Total Fees/Charges (line 9 + line 12) $_____________

14. Total Amount Payable (line 2 + (3) or line 4 + line 13) $_____________

15. Date of Commencement of Repayment __________________________________

ADDITIONAL CHARGES
The bank will impose charges for : -

(a) Early Repayment of Loans: Partial repayment Full repayment

16. If repaid within ________year(s) ________year(s)

17. The minimum repayment amount is $_____________

18. Prepayment Fees $_____________ $_____________

19. Processing Fees $_____________ $_____________

20. Notice period required ______________ ______________

29
 (b) Late Payment of Instalments:

21. The interest charged will be _____% p.a. (for the overdue amount)

22. Processing Fees $_____________

23. Default Charges ______________________________

THIRD PARTY CHARGES

24. The above information DOES NOT cover third party charges – such as stamp duties, legal
fees, valuation fees, insurance premiums etc. Please check with the respective parties for the
charges.

USE OF CPF FOR MONTHLY INSTALMENTS

25. The use of CPF for your housing purchase is subject to various housing withdrawal limits. You
are allowed to withdraw your CPF for the property up to 100% of the Valuation Limit (VL).
Thereafter, you can withdraw more CPF up to the Withdrawal Limit (WL) only if you are able
to set aside the prevailing Minimum Sum cash component in your Ordinary and Special Accounts.
No further CPF can be used when the WL is reached and you will have to use cash to
settle the outstanding loan. Hence, you should exercise prudence when buying a property.
Please refer to the CPF Housing Withdrawal Limits Calculator available on the CPF website
(http://www.cpf.gov.sg) to estimate when you will reach the CPF housing WL.

INSURANCE POLICY REQUIRED

________________________________________________________________________________

Officer-in-attendance : _______________________ Signature : _______________________

Date : _______________________

30
3. CREDIT CARDS (please refer to Consumer Guide on
Credit Cards at http://www.abs.org.sg. You may ask
your bank for the printed version)
a. Ask your bank for the Highlights of Terms and Conditions
governing the Credit Card that you are applying for and check
the following information carefully:
• credit limit
• repayment grace period
• finance charges for purchases
• cash advance charges
• minimum monthly payment
• late payment charges
• annual membership fee
• lost / stolen card liability
• retrieval fee for documents
• service charge for returned cheques
• balance computation method
• for transactions in foreign currencies
- basis for determining the FX rate used and whether such
rate is determined by the issuer and / or a third party
- administrative fees charged by the card issuer, if any
- commission charged by the card issuer, if any
- any other charges levied by the card issuer
• changes in Terms and Conditions
b. You may want to ask the bank additional questions such
as:
i. Annual membership fee: When will the promotional free
membership period, if any, expire? What is the fee I will have
to pay after the expiry period?
ii. Minimum monthly payment: What is the minimum amount I
have to pay each month? How much interest do I have to
pay on the outstanding amount? If I do not make the minimum
payment for one month, what are the interest and other
charges that I will have to pay? What action can the bank
take if I fail to settle my overdue payments?

31
 iii. Service for returned cheques: What are the charges I
will incur if my payment, either by cheque or GIRO, is
returned for whatever reason?
iv. Cash advance charges: If I take a cash advance from
my credit card line, what are the charges that I will have
to pay?
v. Loss/stolen Credit Card liability: If I lose my credit card,
what must I do? What are my liabilities for unauthorised
purchases?
vi. Changes in Terms and Conditions: If there are any
changes in the terms and conditions for the use of the
card, will I be informed? If so, when will I be informed?
You may also want to ask yourself these questions:
i. Why am I applying for this card?
ii. Can I pay for the purchases in full each month? Or do
I intend to pay the minimum sum required and rollover
my payment?
iii. If I rollover, do I have the means to pay the accompanying
charges?
iv. Do I truly understand the Terms and Conditions such
as the various fees, interest, finance charges and
penalties that accompany the use of the credit card?
4. UNIT TRUSTS
a. What are the profile and background of the asset management
company that I am going to invest my money with?
b. Can I invest using cash, CPF and / or SRS savings?
c. What are the risks of investing in this unit trust fund? (Ask
yourself: Are the risks acceptable to me?)
d. What is the price of each unit of this fund?
e. What is the upfront sales charge that I have to pay?
f. What are the other charges e.g. management fee, switching
fee, redemption fees?
g. How and when will these charges be levied?

32
 h. When will the bank inform me of the number of units I have
bought?
i. When and where can I redeem my units?
j. When will I receive my sales proceeds?
k. How often do I receive updates on my holdings and
performance of the unit trust?
5. BANCASSURANCE
a. Which of the following risks am I likely to face:
i. loss of income
ii. unemployment
iii. disability
iv. death
v. divorce
vi. catastrophic losses
b. What does the policy insure me against?
c. What are the exclusions?
d. What are its features and benefits?
e. What are the premiums payable and how often does payment
have to be made?
f. What are the fees and charges?
g. Can I cancel the insurance plan prior to expiry / maturity?
h. What is the cash value if I cancel the policy?
i. What is the guaranteed value on maturity?
j. Does the policy provide for a policy loan? If so, what is the
interest rate payable?

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 Appendix III

QUESTIONS YOU SHOULD ASK YOURSELF OR THE

BANK WHEN CONSIDERING BECOMING A
GUARANTOR:
a. What is my liability as a guarantor?
b. What is the amount of the liability that I am committing myself to?
c. Under what circumstances can the bank call on me to pay up?
d. Does the bank have recourse to my other monies, if any, with the
bank if I fail to pay up as a guarantor?
e. Are my liabilities as a guarantor limited to a specific quantum or
are they unlimited?
f. When will my liability as a guarantor be discharged, how will I be
notified and by whom?

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 Appendix IV

USEFUL DEFINITIONS OF BANKING TERMS

Banker’s Reference: A banker’s reference is an opinion about
a particular customer’s ability to enter into
or repay a financial commitment. It is
given by an institution, to an enquirer,
with the prescribed consent of the
customer concerned. Typically, the
reference will cover information confirming
that an account is held and how long for.
It indicates the customer’s financial
position but is not intended to be
conclusive proof of the customer’s
position.
Business Day: A day on which business may be
conducted. This excludes Saturdays,
Sundays and public holidays.
Basic Banking Account: An account which offers a limited number
of transactions for a low and affordable
monthly account fee.
Cards: A general term for any plastic card which
may be used to pay for goods and
services or to withdraw cash.
Common examples are:
Credit card - A card which allows
cardholders to buy on credit and to obtain
cash advances. Cardholders receive
regular statements and may pay the
balance in full, or in part usually subject
to a certain minimum. Interest is
chargeable on outstanding amounts not
paid in full.
Debit card (EPS card) - A card, operating
as a substitute for a cheque, that can be
used to obtain cash or make a payment
at a point of sale. The cardholder’s
account is immediately debited for such
a transaction without deferment of
payment.
35
 ATM card - A card used to obtain cash
and other services from an ATM. It can
also be used to pay for purchases made
at departmental stores, petrol kiosks, etc.
Cash card – A multi-purpose stored-
valued card that allows holders to pay for
goods and services without need for PINs
or signatures.
Consumer Credit Bureau: A consumer credit bureau is a repository
of factual information on the credit
application and repayment records of
consumers. The bureau provides this
specific information to its members (credit
providers), under authorised conditions,
to carry out a creditworthiness check on
a consumer. In doing this, the bureau
helps lenders to make accurate and
responsible lending decisions, and to
guard against fraud.
Commission: Money paid to an agent as fees for his
services.
Electronic Banking
(e-banking) Services: Banking services delivered over the
internet, wireless network, Automatic
Teller Machines (ATMs), fixed telephone
network or other electronic terminals or
devices.
Electronic Funds Transfer
At The Point Of Sale: An electronic payment and purchase
technique whereby a shopper’s Debit
Card or ATM Card is used to query his
bank account and obtain information on
whether there is enough money in his
account to settle the purchase. If sufficient
funds exist his account will immediately
be debited and the shop’s account
credited.
Guarantee: An undertaking given by a person called
the guarantor promising to pay the debts
of another person if that other person fails
to do so.
36
Out-of-date cheque: A cheque which has not been paid
because the date on the cheque is older
than 6 months.
Overseas Agent Bank: Overseas bank which facilitates
transactions abroad for you on behalf of
your bank in Singapore.
Paying Agent: The institution, usually one major bank
in each relevant financial centre, which
is charged with collecting, verifying and
paying the coupons from bearer
securities.
Personal Identification
Numbers (PINs): Numbers provided on a strictly confidential
basis by card issuers to cardholders.
Use of this number by the customer will
allow the card to be used either to
withdraw cash from an ATM or to
authorise payment for goods or services
in retail or other outlets, by means of a
special terminal device.
Post-dated Cheque: A cheque that is dated some time in the
future and not payable at time of issuance.
Promotional Material: Any literature or information which is
designed to help sell a product or service
to a customer. This does not include
information relating to service
enhancements and changes to
customer’s existing accounts which need
to be sent to the customers to meet
legislative requirements or which may be
sent where it is in the interest of
customers.
Retail Individual Customer: A private individual who maintains an
account (including a joint account with
another private individual or an account
held as an executor or trustee, but
excluding the accounts of sole traders,
partnerships, companies, clubs and
societies) or who receives other services
from an institution.

37
 Security: A word used to describe the pledging of
assets, such as properties and shares to
institutions as support for loans granted
to customers. If the loans are not repaid,
the institution’s position is “secured” which
means that it can sell the assets to meet
the amount outstanding on the loan.
Third Party Security: Security provided by a person who is not
the borrower.
Yield: The annualised return on an investment,
expressed as a percentage of the value
of the investment.

38
This publication is produced and printed by The Association of Banks in Singapore.
Permission must be sought for any reproduction of its contents.

For more information, please contact:

The Association of Banks in Singapore

10 Shenton Way #12-08 MAS Building
Singapore 079117
Tel: 6224-4300 Fax: 6224-1785
Email: banks@abs.org.sg
Website: www.abs.org.sg