Actual Credit Cards Liability

Upon reading the newspaper article on Most unaware of RM250 limited liability - Stars, found it perplexed that financial institutions kept quiet on this Clause 13.2 of Bank Negara Malaysia’s ("BNM") Credit Card Guideline.

It was stated that if you have reported on the loss of credit card to the financial institutions as soon as possible, you would not be liable for any expenses that was incurred fraudulently but up to a limit of RM250 only.

It was also mentioned that financial institutions have kept quiet on this Clause 13.2 but have added this instead "that all transactions carried out before the loss of the cards are reported to the banks, are deemed to be carried out by the cardholders".

One has to be aware of the time limit for "as soon as possible" as stated in BNM's Clause 13.2. I would reckon that besides the "as soon as possible", the other aspect is if you can prove your whereabout when your credit card was used fraudulently. How can a bank force you to pay up for a fraudulent charge when you were actually at another part of the city.

The financial institutions are declaring profits of up to hundreds of millions per financial year but they will still go to this extent of charging their customers fraudulently. Maybe that's how the financial institutions raked up those millions in profits, by profiteering from uninformed customers. Not uninformed but purposely don't inform or misinformed.
Tags: Bank Negara Malaysia, Credit Card Guideline, Credit Card, Financial Institutions, Bank, Fraudulent