Customers having multiple credit cards will now not be allowed the luxury of using either in case they default on making payments for even one, thanks to stringent measures being adopted by the banks.

As per the prevalent practice, banks are blocking only that card on which there is a payment default and the other cards held by the customer are not touched.

However, the banks have now revised their credit card terms and conditions, pursuant to which all the cards would be blocked if there is a payment default on even one.

The country’s largest private sector lender, ICICI Bank, has already informed its customers about the change, coming into 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 in 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.

In their constant pursuit of recovering dues from credit card customers, banks recently also empowered themselves with a tool that allows them to ask employers to deduct the outstanding amount from the salary.

Employees who may have defaulted on payment, however, cannot object to this deduction of dues at source, according to the new clause introduced in the ‘terms and conditions’ adopted by many of the banks.

Such deductions will be remitted to the bank and will continue till the entire dues are recovered.

The amended ‘terms and conditions’ say that “no law or contract” governing either the card holder or employers prevents the bank from seeking such deduction and subsequent payment by the employer to the bank.

However, the new clause is applicable only for customers who default on their credit card payments. Prior notice has already been sent to all customers to make them aware of this clause.

“Only the defaulters in repayment need to be concerned and it is not of concern to regular customers,” an ICICI Bank official had said.

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