Credit Cards: ‘Credit Card Customer Can Refuse To Pay for Fraudulent Transactions’
Failure to provide SMS alerts constitutes negligence on the part of the bank issuing the credit card, according to the South Mumbai District Consumer Disputes Redressal Forum (SMDCDRF).
Executive Airways was banking with Union Bank of India. The Bank issued a Visa credit card to Pradeep Kumar Thampi, the company’s director. Mr Thampi sent a letter to the Bank requesting for SMS alerts for transactions on the credit card. The Bank did not activate the service. During the period between 1 June 2011 and 4 June 2011, the credit card was fraudulently used for several transactions; but due to absence of SMS alerts, Mr Thampi did not get to know about it until he received the bill much later. He took up the matter with the Bank, disputing the transactions worth Rs4,65,855 in Paris. He proved that he was not in Paris at that time, as borne out by his passport. These were online transactions. Mr Thampi alleged that the fraud took place through duplication of his card by cloning. Mr Thampi was informed that Visa had not honoured the claim, so he must pay up for the disputed transactions. Yet, transactions worth Rs1,06,766 were reversed.
 
Mr Thampi filed a complaint before the SMDCDRF for quashing the disputed transactions. After overruling some technical objections on jurisdiction raised by Union Bank of India, the Forum concluded that the Bank had acted negligently, which constituted a deficiency in service as well as an unfair trade practice. The Forum quashed the demand of Rs3,59,588 for the disputed transactions and also the amounts for retrieval of charge slips. The Forum also directed the Bank to pay Mr Thampi Rs20,000 towards costs and compensation for harassment and tension.
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    Insurance: IRDAI Tells Banks To Stop Forced Selling of Insurance Policies
    While opening bank accounts or availing other banking services, bank customers have sometimes been forced to buy insurance products. This will be stopped by the insurance regulator, Insurance Regulatory and Development Authority of India (IRDAI). IRDAI has said that no customer can be asked to buy insurance mandatorily by corporate agents.
     
    “Where the insurance is sold as an ancillary product along with a principal business product, the corporate agent or its shareholder or its associates shall not compel the buyer of the principal business product to necessarily buy the insurance product through it,” IRDAI said. It added that the chief executive officer and the chief financial officer of the bank will have to give a declaration saying that they have not forced customers to buy insurance through them alone.
     
    IRDAI has permitted corporate agents, including banks, to tie up with up to three life, three non-life and three standalone health insurers.
     
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    Yields Down in Past Fortnight

    Bond yields have declined in a fortnight by 10bps to 30bps. You can expect to get 8.50-8.60% for AAA rated bonds and higher than 9% for lower than AAA rated bonds. 

     

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