Law, not bank, responsible for fraud on you | india | Hindustan Times
Today in New Delhi, India
Jun 22, 2017-Thursday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Law, not bank, responsible for fraud on you

Do not blame your bank if it asks you to pay the money fraudulently withdrawn from your account by using your lost or stolen credit card, reports Naziya Alvi.

india Updated: Jan 15, 2007 01:39 IST

Do not blame your bank if it asks you to pay the money fraudulently withdrawn from your account by using your lost or stolen credit card. The same banks behave differently with their customers in UK and US, because there exists a law to protect the customer against the lost cards.

Amitabh Sen, a senior corporate lawyer, had a tough time fighting a case of mental and financial harassment for his client, Dr Sunil Kumar, the Chief Medical Officer of Lok Nayak hospital. There was a withdrawal of Rs 33,000 from Kumar’s account after he had lost the card in February last year. The thief had forged Kumar’s signature to withdraw the money. Despite informing the bank about the loss of the credit card Kumar was constantly being asked by the bank for the payment

“The law in United States where the concept of credit cards was first created has limited the liability on the lost and stolen credit cards to $50. Similarly the UK laws also limit the liability to 50 pounds,” said Sen who practiced law in US for over 17 years before moving to India

“Interestingly, all these multinational banks follow these rules in US and UK but exploit us here as there is no law to save us though India is one of the largest markets for credit cards,” Sen added.

Kumar had last used the card on January 28, 2006.But when he received a bill in March it showed a withdrawal of Rs 33,349 on February 20, a few days after Kumar had lost the card. Soon after receiving the bill, Kumar filed an FIR in Rajouri Garden police station and also informed the bank that his credit card was missing.

An investigating officer from the bank then visited Kumar to record his statement and found that the specimen signatures at the bank and the signatures on the 6 transaction slips were totally different.

But the bank continued to harass Kumar for recovery of payment.

Finally few legal notices were served to the bank by Sen, citing the US and UK laws. Eventually the bank not only waived off the outstanding dues but also credited the withdrawn Rs 33,000 in his savings account.

Email Naziya Alvi: Naziya.alvi@hindustantimes.com