Tuesday, September 23, 2008

FW: Credit Card " RM250 Limited Liability "

The limit of your liability for a lost or stolen credit card is RM250.00

under Rule 13.2 of the Bank Negara rules on credit card if it has been

fraudulently used. Please note this limit and ensure that your bank does

not overcharge you should your card have been used illegally.

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.

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