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”).
What does being “past due” mean?
For credit cards and revolving unsecured credit lines, FIs typically treat an account as past due if the minimum payment is not received by the specified due date. Non-revolving unsecured credit lines (e.g. term loans) are generally considered to be past due if any instalment amount due is not paid by its due date.