Card Holder’s Legal Liability
Now the Credit Card holders have to face many financial problems relating payments to the Card issuing banks and financial institutions and for that I think time has come to know in some special cases what your liability is when you are credit card holder.
- When you have lost your card or it is stolen: - If you don’t inform it to the issuing bank’s customer care service as soon as you have noticed your credit card loss you will have to bear the liability till the period of information to customer care dept and then for legalize the matter you will have to diarize the matter before the local Police Station where you lost it.
- When it is used by another person:- There are indeed two situations when card holder will be liable for it’s use by another person.
a) When there is a common law agency, where the agent has either an express or implied to act on his behalf.
b) Where there is a deemed agency, i. e deemed by statute.
3. Unauthorized purchase by agents: - Though the unauthorized spending would constitute a breach of agreement between the principal card-holder and his agent, this would not affect the principal card holder’s liability to the card issuing bank. It means principal card holder is liable for that.
4. Card Holder’s Liability for signing blank sales voucher: - Card holder will be liable to pay the complete sum but if the card was on ‘pick-up’ or ‘stop-list’ and the bank authorizes the agent’s spending then the principal card holder will not be liable for the spending by his agent.
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