Most unaware of RM250 limited liability
CARDHOLDERS need not pay more than RM250 whenever
their lost or stolen
credit cards are used by others. Yet, oftentimes,
they end up paying much
more.
This is because Bank Negara has not informed
cardholders that they do not
have to pay more than RM250 for fraudulent
transactions carried out using
their lost or stolen cards, when they had not acted
fraudulently and had
informed the banks about the lost or stolen cards as
soon as possible.
This protection is given under Clause 13.2 of Bank
Negara’s Credit Card
Guideline (”The cardholder’s maximum liability for
unauthorised transactions
as a consequence of a lost or stolen credit card
shall be confined to a
limit specified by the issuer of credit cards, which
shall not exceed RM250
provided the cardholder has not acted fraudulently
or has not failed to
inform the issuer of credit cards as soon as
reasonably practicable after
having found that his credit card is lost or
stolen”).
Banks know about Clause 13.2 but have chosen to
ignore it. Instead they
pursue cardholders for the fraudulent transactions.
They will tell cardholders that a clause in the
credit card contracts states
that all transactions carried out before the loss of
the cards are reported
to the banks, are deemed to be carried out by the
cardholders.
Many cardholders then pay up because they are
unaware of the RM250 limited
liability.
Bank Negara should rule that:
.THE RM250 maximum liability on fraudulent
transactions is highlighted to
cardholders in the card agreements as well as in the
monthly card
statements.
.BANKS are not allowed to insert any clause in the
card agreement which is
contrary to Clause 13.2.
.BANKS should refund all money in excess of the
RM250 collected from
cardholders whose cases clearly come under Clause
13.2.
S.M. MOHAMED IDRIS,
President,
Consumers Association of Penang.
(Source: The Star Online)
*got from forwarded email*
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