Banks and credit cards
BANKS have been issuing credit cards to customers with hefty credit limits.
While they conduct a thorough investigation before issuance of credit cards to protect their own interest, they have shown little consideration for the threats to the credit card-holders.
The credit card-holders should be aware that in the event of card and mobile phone snatching, it would take at least 10 to 15 minutes to have the card blocked.
This is ample time for the snatcher to purchase high-value cellphones, electronic gadgets, etc., up to the limit on the card.
It would then be a surprise for the card-holder to find out that though he did not sign the credit card slips, he is responsible for the transactions up to the time the card was blocked.
Non-payment will affect the card-holders’ credit status maintained by the State Bank.
The banks have covered themselves by including this in the fine print of their credit terms.
I was compelled to write this letter after my bank told me that my credit limit cannot be reduced.
Also, obtaining insurance cover is only a reactive measure as the crime is effectively being funded by insurance money.
The banks should realise this fact and allow customers to keep limits at their desired level. Another option is assigning per transaction limits or capping the value of transactions conducted in one day.
The State Bank of Pakistan, as the regulator, should also seriously look into this matter and issue suitable instructions to the banks.