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F
Finance Charges
- Charges imposed on outstanding balance after payment due date. For
cash advance, finance charges are computed from the transaction
date. For balance transfer programmes, the rate of interest charged
on the balances transferred to the new card may differ from that
imposed on purchases and cash advance for a specified period.
Financial Goals - This is what a person intends to do with
his/her money within a certain period of time. Goal setting is
crucial to help in planning of expenses and in spending wisely.
Financial Mediation Bureau - A company established under the
Companies Act 1965 to act as mediator to settle disputes between
financial service providers and their customers.
Financial Planning - To organize your finances to meet
your goals. The goals can include buying a house, financing your
children’s education or planning for retirement through the proper
management of your finances.
Financing Tenure - Number of years taken to fully pay the
financing amount and profit margin as agreed under a specific
payment programme.
Fixed Deposit - Money placed with banking institutions for a
fixed tenure, e.g. 1, 3, 6, 9, or 12 months to earn interest.
Fixed Rate Loan - A term used to describe a loan, where
interest charged is fixed throughout the tenure of the loan.
Fixed Term Charges - Total interest charged on the HP
facility that is calculated as a fixed percentage on the amount
financed over the duration of the facility.
Flat Rate - A term to describe interest that is charged as a
fixed percentage of the loan amount throughout the tenure of the
loan. The flat repayment amount is usually determined before the
commencement of the repayment programme. For example, interest
charged on a RM10,000 loan at a flat rate of 10% per annum is RM1,000
annually until the loan is fully settled.
Floating Rate Loan - A term used to describe a loan, where
the interest charged fluctuates due to the rise and fall of a
certain indicator such as the Base Lending Rate.
Foreclosure - Legal action available to the banking
institution for recovering outstanding sums owed by a borrower who
has defaulted on his/her loan. The property pledged by the borrower
to secure the loan is sold and the proceeds of the sale used to
settle the outstanding loan amount.
Foreign Currency - Currency notes and coins which are legal
tender in any territory outside Malaysia, excluding the currencies
of Israel and Federal Republic of Yugoslavia (Serbia and
Montenegro).
Fraudulent Transaction - A transaction unauthorized by the
cardholder. Such transactions may occur as a consequence of credit
cards that are lost, stolen, not received, issued on a fraudulent
application, counterfeit or other fraudulent conditions as defined
by the credit card issuer.
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