June 11th, 2009 - The Association of Banks in Malaysia (ABM) would like to affirm that in line with the objectives of protecting the interest of the consumers and fostering greater confidence in the banking sector, guidelines have long been in place to provide that the card holder’s maximum liability for unauthorized transactions as a consequence of a lost or stolen credit card shall be confined to a limit specified by the bank issuing the credit card, which shall not exceed RM250. This limit applies only in the event the cardholder has not acted fraudulently or has not failed to inform the bank as soon as reasonably practicable after having found out his or her credit card was lost or stolen.

To the best of ABM’s knowledge, these guidelines have been adhered to and banks have acted reasonably and fairly (and will continue to do so) in all circumstances where it was established that the cardholder was an unfortunate victim and there was no contributory negligence on his or her part. In many instances, however, investigations have revealed that the cardholder had failed to take proper care or that the cardholder did not take prompt action after the loss or theft of the credit card was discovered. ABM will be happy to assist with any queries if any.

Chuah Mei Lin
Executive Director
The Association of Banks in Malaysia