**All Malaysians should be made aware of this clause…….**

*The limit of your liability for a lost or stolen credit card is RM250.00 only
under Rule 13.2 of the Bank Negara rules on credit card if it has been
fraudulently used.*

Please note this limit and ensure that your bank does not overcharge you
should your card have been used illegally.

Most are unaware of RM250 limited liability – PLEASE READ AND BE
INFORMED! CARDHOLDERS need not pay more than RM250 whenever
their lost or stolen credit cards are used by others. Yet, often times, they
end up paying much more.

This is because Bank Negara has not informed cardholders that they do

not have to pay more than RM250 for fraudulent transactions carried out
using their lost or stolen cards, when they had not acted fraudulently and
had informed the banks about the lost or stolen cards as soon as possible.

This protection is given under Clause 13.2 of Bank Negara’s Credit Card
Guideline:

“The cardholder’s maximum liability for unauthorised transactions as a
consequence of a lost or stolen credit card shall be confined to a limit
specified by the issuer of credit cards, which shall not exceed RM250
provided the cardholder has not acted fraudulently or has not failed to
inform the issuer of credit cards as soon asreasonably practicable after
having found that his credit card is lost or stolen.”

Banks know about Clause 13.2 but have chosen to ignore it. Instead
they pursue cardholders for the fraudulent transactions.

They will tell cardholders that a clause in the credit card contracts states
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.

Many cardholders then pay up because they are unaware of the RM250
limited liability.

Bank Negara should rule that:

*THE RM250 maximum liability on fraudulent transactions is highlighted
to cardholders in the card agreements as well as in the monthly card
statements.

*BANKS are not allowed to insert any clause in the card agreement which
is contrary to Clause 13.2.

Cardholders

*BANKS should refund all money in excess of the RM250 collected from

whose cases clearly come under Clause 13.2.

S.M. MOHAMED IDRIS,
President,
Consumers Association of Penang