Credit card holders may face claims from customer service officers that annual fees are mandatory even when cancelling, but this assertion is not accurate, according to Milelion.
A recent dispute involved a CIMB Founders Card holder who received an SMS regarding a S$338 charge. When the cardholder contacted customer service to cancel the card, the officer said that the fee was “strictly non-waivable” and insisted it must be paid even upon cancellation, Milelion reported on November 13, 2026.
The cardholder maintained that annual fees are paid for the upcoming year and should not apply if the account is closed. After the customer persisted, the service officer eventually agreed to seek approval for an exceptional waiver, which was granted about an hour later.
Cancelling a card can affect accumulated loyalty points. While banks like DBS, HSBC, and Standard Chartered have pooled points, cardholders must still convert remaining points associated with a specific card before cancellation, according to Milelion.
Some cards offer bonus miles for paying the annual fee, which may be clawed back if a waiver is later granted. In one instance, a cardholder who received a waiver on a S$196.20 fee for a DBS Altitude Card had to repay the deficit for converted points at a rate of S$0.0388 per DBS Point.
If a bank refuses a waiver request, cardholders are encouraged to request written confirmation that the fee cannot be waived despite cancellation. This documentation can support a potential complaint with FIDReC or MAS, Milelion stated.
The report advises that if a bank insists on payment, cardholders should hold their ground and ask for escalation. While banks may claim fees are non-waivable on their websites, this typically applies only to those who retain their accounts.
