Bad credit history will block multiple card use

Bad credit history will block multiple card use

 Customers with multiple credit cards will not be allowed the luxury to brandish several cards if they defaulted on making payments against one, thanks to sweeping measures being adopted by banks.

According to the prevalent practice, banks block only that card on which there has been a payment default with the customer free to use other credit cards that he possesses.
But now, banks have revised their credit card terms and conditions, pursuant to which all the cards would be blocked if customers default while paying their bills on even one.

The stringent measures imply that customers’ bad credit history would bar them from using several other credit cards.

The country’s largest private sector lender, ICICI Bank, has already informed its customers about the change, with effect from October 5, while other banks will soon follow the suit. As per the new terms, if a customer holds two or more cards and defaults in making payments against one of the card accounts, “ICICI Bank is authorised to block the credit limit as made available to the card member under all other ICICI Bank’s card accounts as well as withdraw such privileges/ benefits as made available under all such card accounts, till such time the defaulting card account is regularised by the card member.

 “The card member also agrees and acknowledges that ICICI Bank shall not be required to provide any additional notice for the above,” as per the revised terms.

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