Credit card lost or misused
If you lose a card, you should immediately inform your bank about it and get it blocked. The liability fee on a lost or stolen card is typically payable on the expenses incurred during the period between the loss and your informing the bank. Most banks have a zero liability policy that comes as a feature in the card, and some will ask you to opt for it. What this means is that the card user does not have to pay anything against the expenses occurred during the period between the loss and you informing the bank.
Process to Follow
If you have been a victim of card fraud, including theft or loss, according to a master circular by the Reserve Bank of India (RBI), Frauds classification and reporting, it is the banks’ responsibility to provide protection against and fight frauds. If you lose your card or it gets stolen, you should first inform the bank and block it. After this, you will not be liable for any of the transactions that happen after it is blocked.
You should file a report with the police and lodge a first information report (FIR) and get an acknowledgement for the complaint. You will need to give a written application containing your bank debit or card number, and/or account number and the date of loss. You might also need to give a copy of the FIR in case there is an unauthorised transaction online. If the fraud happens outside India, you would also need to furnish a copy of your passport. The bank will reissue a card if the earlier one was lost, stolen or damaged, usually for around Rs.100.
All banks have some sort of zero liability policy to protect cardholders, especially if card loss is reported within the stipulated time. This may vary depending upon the type of transaction and reporting deadlines.
- Cardholder in such cases has to inform to the Bank and report the loss/theft of Credit Card so that the Card is blocked immediately.
- Report loss to the police and collect a copy of the complaint / FIR and submit the same to the Company immediately.
- In the event of misuse in “Card not lost” scenario, the cardholder has to file a FIR online to the local cyber-crime cell of the State Police and send the copy of the same to the Company for record.
- Cardholder will be liable for all transactions made on the Card until blocking of the card or receipt of the written confirmation along with a copy of the police complaint/FIR.
- If the Cardholder subsequently recovers the Card, the recovered Credit Card must not be used. Please destroy the Card by cutting into several pieces through the magnetic strip.
How to claim compensation of lost/misused Credit Card?
1. Compensation is provided to cardholders in case of loss and misuse of card by the issuing bank, which also sets up the insurance arrangement.
2. For the claim of loss to be valid and made good by the card issuing bank, the cardholder will have to make sure that all procedures to establish genuine loss are in place.
3.The cardholder should notify the bank about the loss and block the card’s usage to ensure that diligent action to minimise loss has been taken.
4.The loss of card will have to be reported to a police station and an FIR will have to be filed. This is to ensure that recovery from the miscreant is possible for the issuing bank.
5.Compensation to the cardholder is given independent of the recovery of money from the miscreant due to the presence of insurance cover.