FIs disallowed from granting further unsecured credit to borrowers who are 60 days past due on any credit card or unsecured credit facility extended by the FI. Other FIs will also not be allowed to grant credit limit increases, or issue new credit cards or unsecured credit facilities, to such borrowers (“60 days past due rule”).
If a borrower has debts that are 60 days or more past due with only one FI, are other FIs required to suspend his credit cards and unsecured credit facilities as well?
Only the FI with which the debt is 60 days or more past due is required to suspend the borrower’s credit lines. However, other FIs cannot issue new credit cards or unsecured credit facilities, or grant credit limit increases, to the borrower.