RBI Working Group debunked

The RBI has been attacked by the only token member of the public and so called consumer activist Manubhai Shah of CERC. At least CERC had the courage to speak out against the lopsided and unfair Working Group report of RBI on Credit Cards. Except for good old Prof. Shah, all the members of the commitee were vested interests of the illegal credit card industry that is causing massive problems for the Indian economy. SarbaJit Roy intends to challenge the vires of RBI's action and this new CIBIL law in the Supreme Court of India shortly after this law comes into force.

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RBI norms on credit cards unfair: CERC
New Delhi, May 16

Terming the RBI’s proposed norms on credit cards as “unfair and unilateral”, Ahmedabad-based consumer forum CERC today proposed legislations to safeguard the interest of cardholders and rein in the powers of issuer banks or companies to recover dues.

“The printed conditions (of credit cards) are unilateral and unfair, presented to consumers on a take-it-or-leave-it basis leaving no chance for any question or negotiation,” the Consumer Education and Research Centre said in its suggestion to the RBI.

Though the RBI’s working group referred to various laws practiced worldwide, the CERC said it failed to report two specific laws — the Fair Debt Collection Practices Act of the US and the Credit Contracts and Consumer Finance Act of New Zealand.

The US law prohibits recovery of dues from credit card holder by any other agencies except through the process of law, while the New Zealand law provides insurance coverage and right to cancel the contract.

The CERC favoured insurance cover for lost, stolen and misplaced cards to protect the interest of consumers.

It also opposed the passing of information of credit card holders to any other agencies except banks and credit information bureau. — PTI