ICICI to Collect Credit Card Debt as Salary Deductions
Jul. 27 – India’s largest private sector lender, ICICI Bank, has announced that it will soon be allowed to request companies to deduct money from an employee’s salary to cover credit card debts.
The new terms and conditions of banking with ICICI are effective starting July 23 and and is expected to be adopted by other banks as well to make it easier for banks to seek out repayment.
An ICICI spokesman told The Times of India: “This clause is applicable only for customers who default on their credit card payments. Prior notice has already been sent out to all customers to make them aware of this clause.”
The new regulations are in response to fears that another wave of global debt will send major banks to default. India is the first nation to have actively move to protect themselves from the credit card risks by aligning themselves directly with their employers.