What to Do If Banks Issue Unsolicited Credit Cards

Summary

Imagine opening your mailbox one morning to find a new credit card that you never applied for. As an alternative, your bank might call to let you know that your current card has been upgraded and that a higher fee will be applied automatically. If this sounds familiar to you, you’re not alone. Many customers have to deal with banks offering them upgrades or unsolicited credit cards without getting their consent. In this post, we’ll discuss your rights, what you should do, and how to prevent it from happening again. This handbook uses both active and passive voice, a clear structure, and language that is easy to understand. It is based on official legislation and criticism of consumer finance.

1. What precisely is an upgrade or unsolicited credit card?

A credit card that is given to you without your written or digital request is known as an unsolicited credit card.
You didn’t start it. When your current card gets updated to a higher version (typically with more fees or a larger limit) without your express approval, it’s known as an unsolicited upgrade.
In India, organisations like the Reserve Bank of India (RBI) forbid card issuers from doing this without authorisation.
In several other areas, such as the United States, you are also required by law to seek or consent to any new credit account.

2. Why is this a problem?

There are a number of risks associated with accepting an unsolicited credit card or upgrade:

Unreported expenses or charges

You can be charged an annual fee, a service fee, or interest on a card or an upgrade you never asked for.

A decrease in credit scores

If the card is activated but is either misused or left unused, your credit record might show an account you never wanted to open. That can impact your creditworthiness.

Deception may occur

If a card was issued in error, or a fraudulent application was made in your name-you could be held accountable for actions or debts you did not approve.

Unwanted debt or continuing liability

You may involuntarily accept terms you never knew you had agreed to by activating.

3. Your rights and India’s supporting regulatory environment

According to the RBI’s Master Directions on Credit Card and Debit Card Issuance in India:

All card issuers must obtain prior express consent before issuing any new card or upgrading an existing card.

In the case of a card issued unsolicitedly or an upgrade made without your authorisation, and it was activated and invoiced, the law requires the issuer to reverse the charges and pay a penalty equivalent to twice the amount of the reversed charges.

After receiving your confirmation, the bank has seven working days to close the unsolicited card account free of charge.

Additional Authorities

In the U.S., for example, the Truth in Lending Act states that a credit card cannot be issued unless you applied for it (or it is a renewal/substitute for an existing account). HelpWithMyBank.gov

This means you are protected in many jurisdictions, but you still must act to enforce your rights.

4. Step-by-step instructions for what to do when you get an unsolicited card or upgrade

Here is a step-by-step process you should follow:

Step 1: Do not accept the upgrade or activate the card

Do not activate any card that was not requested by you. Do not sign any forms or provide the PIN or OTP. According to regulations, the PIN creation/modification, IVR calls, or online confirmation can all be treated as activation.
You can refuse an upgrade if it is offered to you without your consent.

Step 2: Immediately contact the card issuer

Clearly, in writing or by telephone with the bank (or issuer): “I did not agree to this upgrade or apply for this credit card. Please cancel the account immediately and confirm in writing.” Get an acknowledgement

Step 3: Request a formal confirmation of the closure.

Request the bank to close the card account with no charge.
If any charges have been billed, reverse them.
Inform you in writing that the account has been closed.

Step 4: Monitor your credit statements and report.

Look for any unauthorised activity or evidence of the unsolicited account in your credit report or statements. Flag everything that you come across.

Step 5: Escalate if required

In case the bank rejects or delays:

File a complaint with the RBI Ombudsman through the Integrated Ombudsman Scheme in India.
Use the consumer credit bureau’s complaint procedure or the relevant financial regulator in other countries.

5. How to avoid unsolicited cards and upgrades in the future

If this option is available from your bank or credit bureau, be sure to select “Do Not Opt-in” to avoid getting new credit lines.
When banks call you regarding “offers,” make sure you scrutinise your communication envelope and online banking.
Decline promotional credit card offers whenever possible.
Keep your credit profile’s contact share to a minimum and refuse auto-upgrades until you specifically request them.
Document all of your correspondence with the bank. Written documents serve as evidence.

Conclusion

More than an irritant, an unwanted credit card or an upgrade from your bank exposes you to fraud, unsolicited fees, and even credit danger. Fortunately, you have strict restrictions for protection, such as those provided by the RBI in India. The key here is that early action is important: do not activate the card, inform your issuer promptly, ask for written closure, monitor your credit record, and escalate if needed. Keep your records straight and stay vigilant. This way, you stay in control of your credit profile and protect yourself from threats unseen. Stay informed, take charge, and avoid surprises over statements.