BB Asks Banks Not to Charge Interest on Credit Card Late Fees

Bangladesh Bank (BB) on Wednesday asked banks not to charge any interest on credit card late fees from March 15 to May 31, this year.

Banks, which already charged or accrued interest on the customer’s credit cards late fees since March 15, have to pay back to customers’ accounts, said a BB circular, issued on the day.

The instruction would be effective from March 15 to  May 31, added the circular.

On April 4, the central bank instructed all scheduled banks to waive late payment fees and other charges on credit card bills till March 31.

But some banks have used clever wording in their SMSs sent to customers regarding this matter. 

They have said that the late fee will be waived but did not mention anything about other charges or fees incurred due to late credit card bill payment.

Customers are suspecting that their respective banks will impose various other charges, defying the central bank’s directive.

In addition, many customers also suspect that they will have to pay high amounts of interest if they do not pay their credit card bill on time.

But, now the central bank clarified the matter, asking  banks not to charge any interest on credit card late fees from March 15 to May 31 this year.

According to BB circular, some banks are charging compound interest on customers’ credit card late fees, which is not desirable in the current crisis moment. 

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