ICICI Bank has added one more condition to the 35-page 'terms and conditions' of their credit card agreement.

According to this condition, if you don't pay up your credit card dues on time, the bank is now entitled to get in touch with your employer and ask him to deduct the dues from your salary.

Here is what the clause states:
Clause M: In the event the Cardholder/ Card Member does not pay his outstanding dues on the relevant due dates, ICICI Bank shall be, in addition to the various rights and remedies of ICICI Bank referred to in the clauses herein, irrevocably entitled and authorised to contact and require the cardholder’s/ Card Member’s employers to make deduction/s from the salary/wages payable by the employer to the Cardholder/ Card Member and to remit the same to ICICI Bank until all of the Cardholder/ Card Member dues outstanding from the Cardholder/ Card Member to ICICI Bank is/are completely discharged. The deductions shall be of such amounts, and to such extent, as ICICI Bank may communicate to (and instruct) the Cardholder’s/ Card Member’s employers. The Cardholder/ Card Member shall not have, or raise/create, any objections to such deductions. No law or contract governing the Cardholder/ Card Member and/or the Cardholder’s/ Card Member’s employer prevents or restricts in any manner the aforesaid right of ICICI Bank to require such deduction and payment by the Cardholder’s/ Card Member’s employer to ICICI Bank.

See all the terms and conditions here .

This will be applicable to all new customers of the bank.

Wealth spoke to Ketul Shah, a chartered accountant with an MBA, who specializes in banking, finance and insurance. He said, "This is an additional tool in the hand of banks to recover their dues. Now those with ill intent will think before getting into such transaction because, not only is this about recovering dues from the employer but also about the employer getting to know that there is a default."

On the other hand, says Shah, this clause is dangerous when it comes to disputed transactions, and interest/ fees on those.

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e-mail: Deepa Venkatraghvan

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