Last year, however, the yellow light went on. At banks and also the Central Bank, the fear was that the industry exuberance, which was growing at Chinese rates, could quickly turn into a massive default.
In the mean time, some executives became scared: an official research requested by the banks showed that many customers, especially those with lower incomes, believed that the minimum credit card payment payed off the debt. The government became concerned and called off the whole credit card industry to organize the mess.
Within this reorganization, everyone is expecting the most difficult stage. “We are preparing. It will be a delicate moment because the consumer will have to pay more for a large shopping bill in December. The budget is already usually tight in the beginning of the year. Many will have problems,” says a director of a large retail bank.
Full article here.