(a) ask borrowers what their preferred credit limits are; or
(b) obtain borrowers’ consent for the amounts of the credit limits to be granted.
What is the purpose of this rule?
This rule enables a borrower to request a credit limit that he is comfortable with when he is applying for a new credit card or unsecured credit facility, or when asking for a credit limit increase. Some borrowers have given feedback that they would prefer to have lower credit limits to better control their expenditure or for security reasons.