State Bank set limits on credit card compensation
State Bank set limits on credit card compensation
Credit card service providers will have to compensate card owners for any probable loss not caused by the owners, starting November 28, 2016.
This is according to Circular No. 30 from the State Bank of Vietnam (SBV).
Banks and other financial entities will have a maximum of five days from the announcement of the results of inspection based on the clients' claims to comply with the appropriate contract and legal procedure as stated in the recently issued circular, which includes several additions to regulations on payment and intermediate payment service in Viet Nam.
In case the deadline for inspection of claim as stated in the card contract has already passed without a determined cause of loss or the party at fault, within the next 15 working days, the credit card issuer must negotiate with the card owner to find a solution or offer temporary compensation until a final decision is reached by the appropriate authorities on the fault and responsibility of each party.
With regard to cheque service and usage, SBV stated there must be a concrete regulation on the time limit for clients to file a claim, which would be no less than 60 days since the cheque is presented for encashment. Meanwhile, the time limit for the cheque service provider to handle the said claim must be no more than 30 working days from receiving the client’s initial claim.
For cases of legal breach, investigation must be undertaken by an authorised government agency, whereas cases where no legal breach is involved can be handled by the card issuer and the card owner alone.
Circular No. 30 also deemed any probable loss due to concerned parties, such as intermediate payment organisations, international card organisations and card acceptance units, will have to be compensated by the said parties to the credit card issuers in accordance with a mutual agreement.
