Customers with multiple credit cards will not be allowed to use any of them if they default on any one of them. Credit card companies have revised their terms and condition to implement this. This move has been initiated by ICICI Bank, which has already informed its customers about the upcoming change from 5th October 2009.Now the bank is authorized to block credit card on any other account of ICICI Bank after one defaults in any one of its multiple cards. Banks would not provide any additional notice for this action.

In order to reduce their bad loans and credits banks had recently included terms and condition to deduct and recover any outstanding amount directly from the employer before paying the salary to the defaulter. The clauses are applicable only on the credit card payments.

Our view: This would surely make customers to spend diligently. Till now banks are blocking cards for its account, if this proves successful they may resort to blocking all the cards by all banks. Doing this would be a step towards preparing credit history for all the users.

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