Unsolicited credit card is no more your headache……….Khyati Dharamsi. Mumbai
Had a bad credit card experience? Help is at hand. On Thursday, the Reserve Bank of India cracked the whip on credit card issuers by setting out some stringent guidelines.
These include:
1 The cardholder will not be responsible for misuse of an unsolicited credit card before the card reaches him or her. Loss arising out of misuse of such unsolicited cards will be the responsibility of the card issuing bank only and the person in whose name the card has been issued cannot be held responsible, the RBI said.
1 The cardholder will not be responsible for misuse of an unsolicited credit card before the card reaches him or her. Loss arising out of misuse of such unsolicited cards will be the responsibility of the card issuing bank only and the person in whose name the card has been issued cannot be held responsible, the RBI said.
2 If a person is billed for a card he did not ask for and did not use, the issuer shall not only reverse the charges but also pay double that as penalty to the recipient.
3 If a person reports loss of the card, it should be noted immediately and reflect in the accounts. Banks are advised to block a lost card immediately on being informed by the customer and formalities, if any, including lodging of FIR, can follow within a reasonable period. To reduce the misuse of lost or stolen cards, the RBI has recommended to banks to consider issuing cards with photograph, PIN and signature of the holder.
These measures come in the wake of several complaints received including those by the Banking Ombudsman.
The RBI has also sided with the customer vis-à-vis the banks on the issue of sharing information. Banks should give the customer the option to decide whether he is agreeable to the bank sharing with other agencies the information furnished by him at the time of applying for a credit card, the RBI said.
Earlier this month, RBI had asked banks not to delay dispatch of bills and to provide sufficient number of days (at least a fortnight) for making payment before the interest starts getting charged.
Even the charges and penalty that banks levy are on the higher side and RBI needs to take action on this, said Mohan Siroya, chairperson of the Consumer Complaints Cell.