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THE advertisement for a bank uses the following punchline: Hum Hai Na (we are there for you). This bank also offers a credit card. And apparently, it's pretty easy to get one.
Shiju Joseph, 31, an engineer with a private firm in Delhi, was enticed and ended up with XYZ Bank's preferred credit card in April 2007.
He signed the credit card application form without bothering to read the terms and conditions.
BIG mistake.
What happened next
Shiju defaulted on his payment from October 2007 to March 2008. He made a part payment but due to some miscommunication, the amount was not recorded in his bill. In April 2008, the bank debited the outstanding amount from Shiju's savings account without informing him!
Shiju was left wondering how the bank could do this as his savings account was in no way connected to his credit card. So, he e-mailed the bank asking who gave them the authority to deduct the money. I reproduce below, in verbatim, the bank's reply:
In addition to the general right to set off or other right conferred by law or under any other agreement, XYZ Bank may, without notice, combine or consolidate the standing balance on the Card Account with any other account(s) which the Card-Member maintains with XYZ Bank and its Group Companies, and set-off or transfer money standing to the credit of such other account(s) in or towards the satisfaction of the card-member's liability to XYZ Bank under his/her Card Account. Hence the amount has been marked as lien in your savings account.
Read: How your credit card works
