DAP man wants bank to probe unauthorised approval of credit card loan

KUCHING: Democratic Action Party (DAP) man Sim Kiat Leng is urging a bank here to conduct internal investigations into a credit card loan being approved without the cardholder’s knowledge and consent.

The special assistant to Sarawak DAP chairman Chong Chieng Jen said the matter came to his attention after a senior citizen known as Madam Sim related how she was informed by a local bank on Nov 14 last year that a loan of RM44,300 was taken up through her credit card and transferred into her savings account.

“The victim was also informed by the bank that the loan together with her savings of RM47,415.93 was transferred online to a third-party bank account,” said Sim, who was approached by Madam Sim at his office here yesterday.

He added that the victim did not utilise internet banking facilities but instead routinely updated her savings account booklet at the bank’s counter.

“How could the bank allow the transfer of such funds from her savings account without her knowledge and authorisation, especially given that she has never carried out any online transfer of funds with that account?”

He also questioned the bank activating the internet banking features for the victim’s savings account.

“These unauthorised transactions such as loan on her credit card, transfer of the proceeds of the loan to her savings account, and transfer of the RM47,415.93 from her account to a third-party account, all happened in one day,” he added.

Sim also said the victim has lodged a police report and also filed a formal complaint to the bank.

However, the bank informed the victim that they would not compensate her as they were unable to recover the sum from the third party.

“The bank is now demanding the victim to pay the outstanding in her credit card account – a loan that she had never taken up,” said Sim.

He added that together with the victim, a claim has been filed at the Ombudsman for Financial Services (OFS) to seek waiver of the alleged outstanding credit card sum due to the unauthorised transfers and the unauthorised loan from the credit card.

“This is a case of public interest. It can happen to anyone and it undermines the security and integrity of our financial system.

“As such, the government and Bank Negara should take immediate notice and action to restore public confidence in our financial institution,” he added.