In their constant pursuit of recovering dues from credit card customers, banks are empowering themselves with a tool that allows them to ask employers to deduct the outstanding amount from the salary.

ICICI (Industrial Credit and Investment Corporation of India) bank, recently amended the 'terms and conditions' for its credit card holders by including a clause that empowers the employers to recover credit card dues from employees, who have defaulted on payment. The amended 'terms and conditions' say that "no law or contract" governing either the card holder or employers prevents the bank from seeking such deduction and subsequent payment by the employer to the bank.

On the new move, ICICI's spokesman said, "This clause is applicable only for customers, who default on their credit card payments. Prior notice has already been sent to all our customers to make them aware of this clause." The deductions from the employee's salary will be made until the card issuing bank recovers entire amount due on the card. All deductions made will be remitted to the beneficiary bank.

Besides, as per the new clause, it would be the bank which would decide upon the quantum of the deduction. The revised credit card terms and conditions, after incorporating the new clause, have come into effect from July 23, 2009.