Russian Roulette With A Credit Card

For every American credit card holder who feels that he or she has been ripped off by his or her credit card company, you can live vicariously through the exploits of Russian Dimitry Argarkov who, according to the UK's TheTelegraph's Andrew Trotman, scanned the contract into his computer, rewrote it to his liking, sent it back, and his credit card company, without reading the revised version he sent back, signed it. When the credit card company refused to honor the terms they had unwittingly agreed to and attempted to sue him for fees and charges under the terms of the original offer, Argarkov defended on the grounds that he only owed what was due under the agreement he signed. And won.So far.

"The Bank confirmed its agreement to the client's terms and sent him a credit card and a copy of the approved application form," his lawyer Dmitry Mikhalevich told Kommersant. "The opened credit line was unlimited. He could afford to buy an island somewhere in Malaysia, and the bank would have to pay for it by law."

However, Tinkoff [the credit card bank] attempted to close the account due to overdue payments. It sued Mr Argakov for 45,000 rubles for fees and charges that were not in his altered version of the contract.

Earlier this week a Russian judge ruled in Mr Argakov's favour. Tinkoff had signed the contract and was legally bound to it. Mr Argakov was only ordered to pay an outstanding balance of 19,000 rubles (£371).

"They signed the documents without looking. They said what usually their borrowers say in court: 'We have not read it',” said Mr Mikhalevich.

But now Mr Argakov has taken matters one step further. He is suing Tinkoff for 24m rubles for not honouring the contract and breaking the agreement.

Tinkoff has launched its own legal action, accusing Mr Argakov of fraud.

Oleg Tinkov, founder of the bank, tweeted: "Our lawyers think he is going to get not 24m, but really 4 years in prison for fraud. Now it's a matter of principle for @tcsbanktwitter."

I don't know Russian law, so I have no idea how this is going to turn out for Argarkov or Tinkoff, but if this were in an American court applying US law, I'd favor the bank. If Argarkov had marked up the contract so that the changes were obvious, or if he'd brought to the bank's attention the fact that he scanned the agreement into his computer and had altered it, then the subsequent signing of the agreement by the bank might be arguably the assent of the bank to the revised terms. On the other hand, if the agreement is returned looking the same as it did when it was sent, other than the fact that it contains Mr. Argarkov's signature, the bank would not be on notice of the changed terms and, in that case, Mr. Tinkov and his lawyers have a valid point.

Again, I don't know how this is going to come out in a Russian court. I just hope Mr. Argarkov doesn't land in a Gulag.

As to any American consumer thinking of trying the same thing: Think of something else. Attempting to pull a fast one is never a solid financial game plan.