The Financial Supervisory Commission (FSC) yesterday fined Citibank Taiwan Ltd (台灣花旗) NT$6 million (US$211,364) for inaccurately reporting consumer data to the Joint Credit Information Center (金融聯合徵信中心), which might cause some of its clients to be charged excessive interest rates on credit card borrowing at other banks.
Citibank Taiwan had wrongly labeled some of its clients who had applied for interest-free installment plans for specific purchases as having applied to pay their bills in installments, the commission said.
The bank has sent the incorrect data to the center since December 2010, it said, adding that 180,281 clients were affected.
Photo: Lee Chin-hui, Taipei Times
As the center assesses credit scores by analyzing financial behavior — for example, whether credit card bills are paid on time or payments are made in installments — the bank’s mistakes might have negatively affected some clients, FSC Banking Bureau Deputy Director-General Huang Kuang-hsi (黃光熙) told a news conference in New Taipei City.
If the 180,281 clients applied for new credit cards at other banks, they might have been charged higher interest rates, as banks usually rate as riskier consumers who pay bills in installments, Huang said.
Banks do not view people who apply for interest-free installment plans for specific purchases as a higher risk of non-payment, as it is normal commercial behavior, he said.
Citibank Taiwan did not charge the 180,281 clients more interest than it should have, Huang said.
However, if people discover that they are one of the 180,281 clients, they can file a complaint with Citibank Taiwan and ask it to resolve any issues, he said.
The bank’s mistake did not affect the center’s overall credit scores for individuals or the agency’s calculation of consumers’ non-collateral debt, Huang said.
Citibank Taiwan did not comment on the data, only saying that it respects the regulator’s decision and has taken immediate action to correct the error and ensure all credit card information is accurate.
The bank said that it is informing all of the clients who were affected and would update them with the latest information.
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