How to handle demands for outstanding dues on credit card that's not yours

For the past fortnight, Ruchika Singh, 45, a Delhi-based content editor (name and other details changed on request) has been receiving SMS messages from a multinational bank, saying: “Payment on your card ending xxxx is due soon…”. Singh has never had a relationship with this bank, nor has she ever taken a credit card from it.

Another SMS followed saying: “Your unpaid bill on card ending xxxx is affecting your credit score. Pay immediately.” A caller informed her that the amount due is Rs 64,000 plus.

Is this a phishing attempt?

Singh’s first thought was that these were fake messages from someone trying to extort money from her.

 

But when she called the MNC bank’s customer service number, a recorded message said: “Is this about the dues on your credit card number xxxx?” This indicated that her phone number is in the bank’s records and there is indeed a card linked to her number.

Singh consulted a banking expert. On examining the SMS messages, the expert confirmed that the header was similar to the messages he received (he is a customer of the same bank). This ruled out the possibility that the messages were attempts at phishing.

Check credit report

The expert advised Singh to check her credit report. While the report displayed her other loan accounts, it did not show the MNC bank’s card.

“The card is not showing up in her credit report because it is in somebody else’s name, address, and ID number,” says Adhil Shetty, chief executive officer (CEO), Bankbazaar.com.

Adds Sumanta Mandal, founder, Technofino: “This rules out the possibility that her KYC (Know Your Customer) details have been misused to get a card issued. Any delay in payment of dues will not affect her credit score.”

Phone number mapped incorrectly

One possibility, according to experts, is that someone entered her mobile number — either by mistake or on purpose — when applying for a credit card.

“If you apply for a card online, banks verify your phone number using an OTP (one time password). But when you apply through an offline agent, they sometimes do not verify the number,” says Mandal.

Singh needs to resolve this problem. “In the future, if she applies to that bank for a credit card using her current mobile number, it will not issue her one,” says Mandal. He adds that there is minimal possibility of the bank getting after her to pay the due amount (since the KYC details are not hers).

Obtaining redress

Singh needs to email the bank, inform it that someone else is using her number, and request it to remove it from a linked card account.

Besides speaking to the customer care department, she must follow up with emails. “Save the entire chain of email exchanges so that you have documented evidence to show you informed the bank about the issue,” says Shetty.

If she does not get a satisfactory response from customer service, she can complain to the bank’s grievance officer.

“If the bank does not respond within 30 days, or she is not satisfied with the response, she should escalate the matter to the banking ombudsman,” says Ankush Setia, co-founder, Multiply. This can be done online (https://cms.rbi.org.in/cms/indexpage.html#eng)

Experts says the possibility of KYC details being misused is minimal. “If that happens, the victim should file a case with the cybercrime cell of the police department,” says Mandal.

Steps to safeguard yourself against credit frauds

·       Check your credit report, either monthly or quarterly, to stay informed about your credit transactions

·       Such regular monitoring will enable you to detect identity thefts and frauds

·       Sign up for SMS alerts from your lender and card issuer; go through the notifications you receive

·       Review your credit card statements each month to verify that all transactions are legitimate and made by you

·       Check your bank account statements periodically to ensure all expenses recorded therein are accurate