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View Full Version : Liability for stolen credit card capped at RM200, court rules



MasterQ
10-06-2009, 01:31 AM
The High Court ruled today that the maximum that can be charged to a credit cardholder who has lost his/her credit card is RM200.

Inspite of Bank Negara ruling that the maximum that can be charged to the cardholder by credit card companies after a card is stolen is RM200 regardless of the time lapsed or amount, Citibank has this policy saying that you must report your loss of your card within the first hour or else you are liable for the full amount.

When Diana Chee Vun Hsia discovered her credit cards missing a day after they were stolen, Citibank pushed its luck and tried to wrangle the RM1,851 that had been charged the day it was stolen. This is all because she did not report the card stolen within the first hour.

She decided to take Citibank to court to challenge this policy late last year and today the High Court ruled in her favour .

Justice Datuk Mohamed Apandi Ali said that the Bank Negara guidelines “have the force of law.”

So those who were bullied by the credit card companies during the past years and forced to pay up every sen of your lost, it is pay back time. But you may have to wait as I believe these credit card companies will collectively appeal until the cow comes home.

ahbitchew
10-06-2009, 07:07 PM
my friend lost his credit card about 2 years ago, though he reported the next day unfortunately someone has charged the card several thousand ringgit already, and Citibank insist that he should pay the whole amount.

I wonder whether with this court decision my friend can now claim a refund as he is only liable to a maximum of RM200 only ?

denver
10-06-2009, 11:24 PM
The High Court ruled today that the maximum that can be charged to a credit cardholder who has lost his/her credit card is RM200.

Inspite of Bank Negara ruling that the maximum that can be charged to the cardholder by credit card companies after a card is stolen is RM200 regardless of the time lapsed or amount, Citibank has this policy saying that you must report your loss of your card within the first hour or else you are liable for the full amount.

When Diana Chee Vun Hsia discovered her credit cards missing a day after they were stolen, Citibank pushed its luck and tried to wrangle the RM1,851 that had been charged the day it was stolen. This is all because she did not report the card stolen within the first hour.

She decided to take Citibank to court to challenge this policy late last year and today the High Court ruled in her favour .

Justice Datuk Mohamed Apandi Ali said that the Bank Negara guidelines “have the force of law.”

So those who were bullied by the credit card companies during the past years and forced to pay up every sen of your lost, it is pay back time. But you may have to wait as I believe these credit card companies will collectively appeal until the cow comes home.

This is a good info to know. Thanks.

MasterQ
11-06-2009, 01:41 AM
I wonder whether with this court decision my friend can now claim a refund as he is only liable to a maximum of RM200 only ?
I believe Citibank will appeal against this High Court ruling and I guess everyone will have to wait till Citibank has exhausted all it legal recourse - High Court to Appeal Court to Federal Court presumably that Citibank loses its case. Should they lose their case at the Federal Court, then I think it will open the floodgates for all those who were squeezed by the balls to spew out every single sen of their lost to now ask their credit cards companies for the refund with interest.

leetickseng
11-06-2009, 09:58 AM
That's one of the reasons why nearly all banks easily make one billion annually. Almost everything they do or buy is paid for by their customers.
Completely no risks for them!

As for me, my treatpoints were deducted suddenly without my knowledge in the April 2009 statement. Upon enquiring, I was told that they had wrongly transfered to my new account in the November 2008 statement when I lost my earlier card. This is certainly not convincing to me because I clearly remembered that my card was pickpocketed in Europe during Christmas season in December 2008 and not November 2008. I could not verify now because my November 2009 statement could not be located at this point of time. Hangus!

Cougar
18-06-2009, 10:52 PM
U can request for yr Nov 2008 statement from yr banker. Bank's usually charge a minimal statement fee request. There's still hope.