Credit Card Use Agreement Template for Malaysia

The Credit Card Use Agreement serves as the foundational legal document governing the relationship between credit card issuers and cardholders in Malaysia. This document is essential when establishing new credit card accounts and must comply with Bank Negara Malaysia's strict guidelines and regulatory requirements. The agreement covers crucial aspects such as credit limits, interest rates, fees, payment obligations, and cardholder responsibilities, while incorporating consumer protection measures required by Malaysian law. It's designed to protect both the financial institution's interests and cardholder rights, ensuring transparency in terms and conditions as mandated by Malaysian banking regulations. The document is particularly important given Malaysia's growing digital banking landscape and increasing credit card usage across various sectors.

1. Parties: Identifies the credit card issuer and the cardholder, including their full legal names and addresses

2. Background: Brief context explaining the purpose of the agreement and the credit card facility being offered

3. Definitions: Defines key terms used throughout the agreement, including 'credit limit', 'billing cycle', 'statement date', etc.

4. Card Issuance and Acceptance: Terms regarding the issuance of the card, activation procedures, and acceptance of terms

5. Credit Limit: Details about the credit limit, how it's determined, and procedures for limit changes

6. Fees and Charges: Comprehensive breakdown of all applicable fees, finance charges, and interest rates

7. Billing and Payment: Terms regarding billing cycles, statement generation, payment methods, and due dates

8. Cardholder Obligations: Responsibilities of the cardholder including card security, reporting loss/theft, and authorized usage

9. Default and Consequences: Events of default and their consequences, including suspension or termination of card privileges

10. Personal Data Protection: Terms regarding the collection, use, and protection of personal data in compliance with PDPA 2010

11. Amendments and Variations: Terms regarding the bank's right to modify agreement terms and notification requirements

12. Termination: Conditions and procedures for termination by either party

13. Governing Law: Specification that the agreement is governed by Malaysian law and submission to Malaysian courts