Credit crisis not withstanding, the banks and brokers have been up to their old tricks with bizarre and egregious terms and conditions buried in the fine print of forms.
Our example today comes courtesy of UOB. They are proud of their two factor authentication (required by the regulator) for Internet banking, which they trumpet on their home page. However, it seems the pride is tempered somewhat by fear.
If a customer applies to have their password changed, something one should do routinely as a good security practice, the following piece of legalese forms part of the agreement:
"In consideration of the Bank issuing to me a replacement Password, I confirm that I remain responsible for all transactions made with my old or deactivated Password"
Yes folks, UOB has managed to legally defeat the whole purpose of changing your password. Even if someone uses a deactivated or old password, you are responsible. One quick question for the brain trust at UOB - How does a password continue to function if it has been deactivated?
As a customer, I wonder just what kind of a computer department UOB is running if they require legal protection from deactivated passwords.
UOB
Singapore
Banks
Thursday, May 08, 2008
UOB does it again
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3 comments:
Just offhand, and without having read the related literature, I think what they meant to say (but obviously failed to convey), is that changing to a new password does not absolve the account owner of transactions carried out when the old password was still valid. Even then, a somewhat redundant clause to insert. One can only surmise it must have been drafted in probably by the IT department (no offence to technology folks per se, except perhaps for the one at UOB that thought of this one).
Yes, I get that the intention may have been different, but the effect is to create a ridiculous and meaningless clause that is forced on customers.
BTW, I have worked in a lot of IT departments and they never draft T&C documents. This is pure lawyer.
UOB's IT is outsourced wholesale to mini india office at tampines.
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