The Reserve Bank of India (RBI) has put restrictions in place to shield customers against unsolicited credit card offers. The RBI implemented this legislation to protect you from unsolicited credit cards and the hazards that come with them, including
- Unwanted Debt: Unexpected debt could arise since you did not budget for the credit limit.
- Identity Theft: If an unauthorized individual obtains the card, it may be used fraudulently.
This suggests that credit card providers (banks and NBFCs) are not allowed to offer you a card unless you have explicitly requested and given your clear approval.
How To Help Yourself?
If you receive a card for which you did not apply, you are qualified for the following benefits:
1. Refusal To Activate
Don’t input a PIN or OTP to activate the card. This is so that when the card is activated (by providing an OTP or PIN), the issuer is effectively granted authorization to utilize the credit line. If someone else manages to access the card, this might result in unanticipated costs or perhaps fraudulent activity. Since you did not apply, you are not required to use the card. You don’t You don’t intend to use the credit line if you don’t activate it.
2. Contact The Company That Issued The Card
Reaching out to the card issuer: It’s crucial to contact the credit card provider if you receive an unsolicited credit card. Check the card’s information to see if a Non-Banking Financial Company (NBFC) or a bank issued it. There are often several methods to get in touch with the card issuer’s customer support department. For example, the issuer may provide a separate toll-free line for reporting credit cards that are not requested. You can also phone the issuer’s regular customer care line. To report the problem to some banks, you might be able to utilize a secure online service.
What Happens To Issuers?
Particular penalties apply to issuers that deliver credit cards without first obtaining permission, in violation of RBI regulations.
- Account Closure Requirement: Within seven business days of receiving your complaint over the unsolicited card, the issuer is required to promptly and at no cost shut your credit card account. This ensures that you won’t be charged for any purchases made with your card.
- Potential Penalty: The RBI has the right to impose penalties on the issuer if they break the rules. This fine protects the rights of consumers and acts as a deterrence to future similar behaviour.
- Maintain Current Documentation: When dealing with an unauthorized credit card, you must keep a record of your interactions with the issuer. Your complaint of the unsolicited card and your request for closure are attested to by written communication. This is useful should there be any discrepancies later on. You can use your documents as proof if the issuer doesn’t reply or if there’s a disagreement about how the closure was handled. If you have a record of every conversation you have had with the RBI Ombudsman, it will be simpler to register a complaint.
By taking the aforementioned safety measures, you may protect your rights as a customer and protect yourself from any credit card misuse.
