The court said that, in the event of a dispute, the burden of proof rests with the issuing bank, which must demonstrate who actually used the credit card. Liability cannot be automatically presumed to lie with the cardholder, reports the Bangkok Post.
The ruling was disclosed by the Thailand Consumers Council (TCC), which noted the judgment, released on Dec 17, dismissed a claim against a credit card holder.
The court found consumers should not be held responsible when their credit card information is misappropriated and used without authorisation, marking a new standard in consumer protection jurisprudence.
Surakit Singhapol, legal and litigation officer at the TCC, said the ruling represents an important legal principle in consumer litigation and establishes clearer standards for proving damage in cases involving credit card use. The court made it clear that the mere fact that a person’s name appears on a credit card does not automatically mean that person conducted the disputed transactions.
The ruling said financial institutions failed to produce sufficient evidence to prove the cardholder personally used the card or was involved in the acts that caused financial loss. As such, responsibility could not be imputed to the cardholder by assumption alone.
Mr Surakit said consumers who fall victim to technology-related crimes or financial fraud should not be forced to bear losses arising from the actions of third parties or from deficiencies in the security systems and risk management practices of financial service providers.
"The fact that a consumer is the named cardholder does not mean they are always the person who made the transaction," he said. "If the bank cannot prove that the cardholder carried out the transaction, then the cardholder cannot be held liable for the debt."
He said consumers are in a weaker bargaining position compared with financial institutions, which possess specialised expertise.
Requiring consumers to prove their innocence in every case would impose an unreasonable burden and run counter to principles of fairness, consumer protection and the legislative intent to reduce structural inequality between service providers and users, he said.
Mr Surakit said the TCC would use the court ruling as a guideline in providing legal advice to consumers affected by unauthorised credit card use. It will also serve as a basis for policy advocacy with regulators and financial institutions to improve consumer protection measures.
He added that consumers who encounter such situations should act promptly by reporting the incident to both their bank and the police. Timely reporting is a key factor considered by the courts in determining whether a consumer acted prudently and had no involvement in the fraud.
Last year, the TCC received complaints involving credit card fraud amounting to losses of more than B17 million and has continued to provide assistance to affected consumers.