Sunday February 1, 2009
‘Banks must exhaust all avenues over credit card disputes before filing suit’
BY SIM LEOI LEOI
PETALING JAYA: Banks should exhaust all avenues to settle disputes over credit card payment with their clients before filing any lawsuit.
Deputy Finance Minister Datuk Kong Cho Ha said banks could even use the facility offered by Bank Negara to negotiate with their clients over the disputed sum.
“This is particularly true for those amounts disputed because they were fraudulent transactions run up on an account after the credit cards were stolen.
“However, if after due diligence carried by the banks showed that these fraudulent transactions were really run up after the theft and a report was lodged, then banks should bear the responsibility,” he said here yesterday.
Kong was responding to a claim by Consumers Association of Penang president Datuk S.M. Mohamed Idris that some banks were pursuing card-holders for the fraudulent transactions, despite these being run up after the cards were stolen.
Mohamed Idris said although card-holders were required to pay up only RM250 under Clause 13.2 of Bank Negara’s guidelines, many were unaware of such a rule.
Banks know about the clause but have chosen to ignore it,” Mohamed Idris alleged, adding that these banks often fell back on the excuse that a provision in their credit card contracts stated that card-holders must be liable for all transactions carried out before they reported the theft.
Kong said many banks had put into place their own monitoring mechanism to track down fraudulent transactions and would often call up their clients for confirmation if the outlets or purchases looked suspicious.
“Some establishments have even engaged a third party to investigate claims of theft and fraudulent transactions,” he said.
MCA Public Services and Complaints Department head Datuk Michael Chong said some banks were forcing their clients to pay up for such fraudulent charges, to the extent of filing lawsuits against them.
“Sometimes, the disputed sum is very little, around RM2,000 to RM3,000. Most banks are very reasonable and will usually ask only for a minimal sum or for the clients to pay up by instalments for such fraudulent charges.
“But some banks demand full, immediate payment ” he said.
Chong said he had received many complaints of such a nature and had even tried to mediate between the clients and their banks.
“However, they (banks) even told off the clients for getting my help. I’m gathering details of such banks and will not hesitate to publish their names because the public has the right to choose which establishment they should patronise,” he said.
link:
http://thestar.com.my/news/story.asp?file=/2009/2/1/nation/3172520&sec=nation
