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Credit Card Owner Should Pay for Cash Advance Service Made by Lost Card

Credit Card Owner Should Pay for Cash Advance Service Made by Lost Card

Posted October. 23, 2001 08:40,   


Suppose a purchase of 500 thousand worth goods and 1 million won of cash advance service were made by a lost credit card, then how much should the owner of the lost card pay? The correct answer is 1 million won. While the payment for purchases made by a lost credit card within 25 days from the day of its loss is fully refunded when its loss is reported, cash advance service made by a lost is not refundable though its loss is reported.

Two months ago, Mr. K (age 31) lost his wallet with a Samsung card and a LG card in it in Shinchon while he was drinking. The next day, he reported the loss of his credit cards but 1,7 million won had already been withdrawn through cash advance service.

K called the credit card company and asked why he should pay for the cash advance service despite his report of the loss of his card, but it was of no use. ``A password is required to receive the cash advance service, and the card owner is responsible for securing the password. Therefore it is also the card owner`s responsibility to select a password difficult to expose.`` was the only explanation he received from the credit card company.

Even though he argued that ``it is because of the credit card company`s mistreatment of customer information that the withdrawal was made with a password so different from the resident registration number or home telephone number that others were unable to identify.`` his argument was not accepted even by the Financial Supervisory Service.