Regulations Governing Institutions Engaging In Credit Card Business Article 46

Where a card issuer plans to raise the credit limit of a cardholder, it shall send the principal cardholder a prior notice and obtain the principal cardholder's written consent before raising the credit limit. Where the cardholder has a guarantor, the card issuer shall also send the guarantor a prior notice and obtain the guarantor's written consent. The card issuer shall also notify the guarantor and the principal cardholder after the increase in credit limit has been approved.When a principal cardholder applies for adjustment of credit limit, a card issuer shall notify the principal cardholder after the adjustment has been approved. If the cardholder has a guarantor, the card issuer shall send the guarantor a prior notice and obtain the guarantor's written consent in case of raising the credit limit of the cardholder. Otherwise, the card issuer only needs to notify the guarantor after the adjustment has been approved.If the adjustment of credit limit referred to in the preceding two paragraphs also involves change to the credit limit of supplementary cardholder, the card issuer shall also notify the supplementary cardholder of the adjustment.The methods of obtaining a cardholder's or guarantor's written consent mentioned in Paragraph 1 and Paragraph 2 hereof can also be via digital signature, ATM or automated loan machine. However, the card issuer should step up the verification of the identity of cardholder or guarantor and the agreement entered for issuance of credit card shall specify that the card issuer will be held responsible for the loss of the cardholder resulting from its own failure to perform identity verification.