Restrictions have been implemented by the Reserve Bank of India (RBI) to protect consumers from unsolicited credit cards. This law was put into effect by the RBI to safeguard you against unsolicited credit cards and the risks associated with them, such as
Unwanted debt: Since you did not budget for the credit line, unanticipated debt may result.
Identity theft: The card may be used fraudulently if it is obtained by an unauthorised person.
This implies that unless you have specifically asked for and granted your unambiguous consent, credit card issuers (banks and NBFCs) are not permitted to send you a card.
What can you do?
You are entitled to the following if you are given a card for which you did not apply:
Refusal to activate: To activate the card, do not enter a PIN or OTP. This is so that the issuer is essentially given the permission to use the credit line when the card is activated (by entering an OTP or PIN). Should the card be obtained by another individual, this may lead to unforeseen expenses or potentially fraudulent behaviour. You are under no obligation to use the card because you did not apply. You don’t intend to use the credit line if you don’t activate it.
Get in touch with the card issuer: Contacting the card issuer: If you receive an unsolicited credit card, getting in touch with the card issuer is essential. Verify the card’s details to find out if it was issued by a bank or a Non-Banking Financial Company (NBFC). The customer service department of the card issuer can usually be reached in many ways. For instance, the issuer might offer a different toll-free number specifically for reporting unsolicited credit cards. The issuer’s standard customer service number can also be called. You might be able to use a secure online website to report the issue with certain banks.
What happens to issuers?
Issuers who violate the RBI regulations by sending credit cards without prior approval face specific penalties.
Account closure requirement: The issuer must close your credit card account at no cost within seven business days of receiving your complaint about the unsolicited card. This guarantees that you will not be held responsible for any card-related charges.
Potential penalty: If the issuer violates the regulations, the RBI may charge the issuer a penalty. This penalty serves as a deterrent, preventing similar behaviour and defending the rights of customers.
Keep documentation up to date: Recording your correspondence with the issuer is essential when handling an unsolicited credit card. Written correspondence attests to your reporting of the unsolicited card and your request for closure. This is helpful in case there are subsequently any differences. In case the issuer fails to respond or if there is a dispute regarding the closure process, you may use your documents as evidence. It will be easier to file a complaint if you have documented all of your communications with the RBI Ombudsman.
You can safeguard your rights as a consumer and safeguard yourself against possible credit card misuse by implementing the above-mentioned precautions.
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Published: 31 May 2024, 11:58 AM IST