Consumer rights
Read the fine print

While going in for a credit card or any other finance-related service, fill in the application form yourself after carefully going through the terms and conditions, suggests Pushpa Girimaji

HAVE you ever filled in an application form for a credit card? Most likely, the person who is trying to sell the card will ask you for details and fill it in himself and ask you to sign on the dotted line. You will probably be quite happy doing that, given the fact that some of these forms are terribly long and the questions that they ask are in such minute print that you need a pair of glasses to read them. Yet, my suggestion to you is, as far as possible, fill in the form yourself. Or even if you let the other person fill it, check it out carefully before signing it. And, more important, make a photocopy and keep it in your file. This may well become an important document in case you ever have a dispute with the bank that has issued the credit card.

In fact there is more than one reason why you should keep a photocopy. The forms, for example, tell you that there is no annual fee on the card and that it is free during your lifetime. They promise a hefty accident insurance, baggage insurance, and sometimes even medical insurance. Later, the company may change its policy or print fresh application forms that do not promise any of these. But as far as you are concerned, the promises made at the time of giving you the credit card remain. And in order to ensure that, you will need to keep a copy with you.

Remember the case of New India Assurance company vs Smt Shakuntala Bharadwaj (first appeal no 348 of 2001). Here, the Visa card issued by ANZ Grindlays Bank promised an insurance cover of Rs 4 lakh. However when Flt Lt Bharadwaj, who was a pilot in the Indian Air Force, died in an air accident while piloting an aircraft and his mother made a claim, the credit card company pointed to the exclusion clause that said the insurance cover was only applicable if you were flying as a passenger. But in the original papers given to Flt Lt Bharadwaj, this exclusion clause was not mentioned. On the basis of this, the court asked the bank to pay.

There is another reason why you should keep a copy of the application form. Many times, credit card companies say that they do not want any personal information from you and so all you need to do is sign the form saying that you have accepted the offer of a credit card. And as a result, most parts of the form are left blank. Anyone in the bank can easily fill in details that suit them. In fact, it is always better not to leave blank spaces. The other day I saw a credit card form which asks you whether you want subscription for certain magazines. Now, if you have not said no, they may well start sending the magazine and bill it to your credit card. Then, proving that you did not want the magazine will be a time-consuming and irritating task.

It is no different when it comes to an application for a car loan or a house loan. You need to have a copy of the original form that you signed, along with all the terms and conditions governing the loan. Here, too, the long application form is sure to discourage you from filling it in yourself. And in many cases when you do not understand a particular question, the bank may tell you to just ignore it and leave it blank. So keeping a copy is absolutely essential.

The less said the better about the importance of insurance forms. Since any wrong information could jeopardise your claim, make sure that the form is filled in correctly and the information given is accurate. Sometimes the insurance agents will gloss over certain answers that you may give or even ask you not to give certain information. Do not go by such wrong advice. Stick to the truth and keep a copy of the form that you have filled and signed.

How many of you ever keep a copy of the application form that you fill in when you open a bank account, or hire a locker? Or even read it in full? You will be surprised at some of the conditions that these forms contain. Like the application forms for hiring of lockers say that the bank would not be responsible for the safety of valuables kept in the lockers. If you have a copy, even at a later date, you can protest over such terms or even complain to the Reserve Bank of India.

So make it a habit — whatever form you fill, wherever you affix your signature, keep a copy with you. Be a good consumer and protect your interests.