New maximum interest rate from July 1, 2016
Background to the new regulatory requirements
The Swiss Federal Council has changed the method for calculating the maximum interest rate. As a result, an annual interest rate of 12% will apply to new credit card contracts (credit contracts as defined in the Swiss Consumer Credit Act) and major contract amendments that come into effect on or after July 1, 2016. This regulatory measure means that Swisscard, in its capacity as card issuer, must adapt its risk calculation and the corresponding spending limits.
We do not wish this measure to limit the financial freedom of customers who use the credit (installment) facility for their credit card; these existing credit agreements will therefore remain in place unchanged (with the existing spending limit and existing annual interest rate).
These customers do not need to take any action: They can continue to use their existing credit card contract unchanged.
The new interest rate of 12% automatically becomes effective as soon as the total outstanding sum on a card account is paid off. An earlier adjustment (without settlement of this sum) will only be considered on request, and may result in a reduction in the spending limit.
For all other credit card contracts*, the new annual interest rate of 12% will automatically apply from July 1, 2016.
* Excepting SUPERCARDplus and CREDIT-now Card
Application for a credit agreement amendment to implement a new annual interest rate of 12%
Please apply for an amendment to your contract using the relevant form. Once we have received the form, we will review and may reduce the existing spending limit in the light of our risk calculations. In individual cases, we may also request additional information from you (for example your current gross income) to allow us to complete the assessment of your application.
Please return the form to us by post by September 30, 2016 at the latest. A franked template is available here.
It generally takes us a maximum of 10 working days to process a form. We will then let you know whether or not and at what conditions we can amend your contract. Unless we receive notice to the contrary, any changes shall become effective after 14 days. If the current sum outstanding is greater than the new spending limit, the difference shall be payable immediately.