All credit cards to be blocked if default on one
New Delhi: 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
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
"The card member also agrees and acknowledges that ICICI
Bank shall not be required to provide any additional notice
for the above," as per the revised terms.
In their constant pursuit of recovering dues from credit
card customers, banks recently also empowered themselves with
a tool that allows them to ask employers to deduct the
outstanding amount from the salary.
Employees who may have defaulted on payment, however,
cannot object to this deduction of dues at source, according
to the new clause introduced in the `terms and conditions`
adopted by many of the banks.
Such deductions will be remitted to the bank and will
continue till the entire dues are recovered.
The amended `terms and conditions` say that "no law or
contract" governing either the card holder or employers
prevents the bank from seeking such deduction and subsequent
payment by the employer to the bank.
However, the new clause is applicable only for customers
who default on their credit card payments. Prior notice has
already been sent to all out customers to make them aware of
"Only the defaulters in repayment need to be concerned
and it is not of concern to regular customers," an ICICI Bank
official had said.
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