Banks to block all credit cards for payment default on one | india | Hindustan Times
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Banks to block all credit cards for payment default on one

Customers having multiple credit cards will now not be allowed the luxury of using either in case they default on making payments for even one, thanks to stringent measures being adopted by the banks.

india Updated: Sep 28, 2009 16:48 IST

Customers having multiple credit cards will now not be allowed the luxury of using either in case they default on making payments for even one, thanks to stringent measures being adopted by the banks.

As per the prevalent practice, banks are blocking only that card on which there is a payment default and the other cards held by the customer are not touched.

However, the banks have now revised their credit card terms and conditions, pursuant to which all the cards would be blocked if there is a payment default on even one.

The country's largest private sector lender, ICICI Bank, has already informed its customers about the change, coming into effect from October 5, while other banks will soon follow the suit.

As per the new terms, if a customer holds two or more cards and defaults in making payments in one of the card accounts, "ICICI Bank is authorised to block the credit limit as made available to the card member under all other ICICI Bank's card accounts as well as withdraw such privileges/benefits as made available under all such card accounts, till such time the defaulting card account is regularised by the card member."