Bitcoin Forum

When Dmitry Argarkov was sent a letter offering him a credit card, he found the rates not to his liking.

But he didn't throw the contract away or shred it. Instead, the 42-year-old from Voronezh, Russia, scanned it into his computer, altered the terms and sent it back to Tinkoff Credit Systems.

Mr Argarkov's version of the contract contained a 0pc interest rate, no fees and no credit limit. Every time the bank failed to comply with the rules, he would fine them 3m rubles (£58,716). If Tinkoff tried to cancel the contract, it would have to pay him 6m rubles.

Tinkoff apparently failed to read the amendments, signed the contract and sent Mr Argakov a credit card.

"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 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."

The court will review Mr Argakov's case next month.

https://www.telegraph.co.uk/finance/personalfinance/borrowing/creditcards/10231556/Man-who-created-own-credit-card-sues-bank-for-not-sticking-to-terms.html

The most problem we have in the traditional financial system is the centralized mode of operations which allow for third party involvement.

This news story could illustrate one advantage crypto currencies have over conventional banking and credit platforms in terms of them being less trust based. Smart contracts in crypto would likely be deliberately designed to prevent this form of exploit. While credit card companies as trust based systems would more commonly fail to recognize the attack vector.

Perhaps we will see less of this occurrence as financial institutions like banks make a transition to more algorithmically regulated banking which relies less on trust. Until then, I hope everyone enjoys humor and entertainment from this, while it lasts.

Maybe in future cryptocurrencies can create a new form of the banking system. Less centralized and more flexible, where initiatives like that one cannot be easily suppressed.

Maybe in future cryptocurrencies can create a new form of the banking system. Less centralized and more flexible, where initiatives like that one cannot be easily suppressed.

This news story could illustrate one advantage crypto currencies have over conventional banking and credit platforms in terms of them being less trust based. Smart contracts in crypto would likely be deliberately designed to prevent this form of exploit. While credit card companies as trust based systems would more commonly fail to recognize the attack vector.

Every so often I see stories in the news where a bank and consumer get into a legal dispute and the bank loses in impressive fashion. Years ago there was a guy who wore fake vampire teeth in news interview that sued wells fargo and won(news clip below):

https://www.youtube.com/watch?v=_oIxBVhGubI

Perhaps we will see less of this occurrence as financial institutions like banks make a transition to more algorithmically regulated banking which relies less on trust. Until then, I hope everyone enjoys humor and entertainment from this, while it lasts.

If you think the banking system will ever change for the better, then you're wishful thinking. If they haven't changed in the last few decades, they will not change in a fundamental way in the next decade or two.

In our books, this could easily fall as fraud, though I don't know much about the Russian law and whether this could fall under the favor of Mr. Argakov. or the bank. Altering the contracts in to one's favor without the consent of the other party involved is already something fishy, though in this case it should be reviewed by the banks and knowing that this has been a practice of theirs for the longest of time, Mr. Argakov just found a loophole to exploit and make something out of it.

I'm just so surprised there's banks that still do business in this archaic manner with paper documents and wet signatures. I have a bunch of credit cards. I've never had the opportunity to amend a credit card agreement. You apply, they send you a card with a boilerplate agreement, and if you don't agree to the terms you need to cancel the card. That's how any sensible bank should nip this problem in the bud.

He just took advantage of a system flaw, with the automation in the steps and others I am not surprised to read such a story.

Smart contracts have indeed their place but the thing is smart contracts are not only about cryptos. It can also be used (and it is) with the fiats system, insurance.. It's about IT protocols firstly. And to be an efficient smart contract the data needs to be accurate and this is where we have a limit with it.

we hope that way, even though the realization may be the generation after us. at the moment I just hope that bitcoin can be legalized in most countries in the world, and even then it has increased our assets

I love seeing someone beat the system. If the underdog can play the game and win, I'm all for it.

I'm just so surprised there's banks that still do business in this archaic manner with paper documents and wet signatures. I have a bunch of credit cards. I've never had the opportunity to amend a credit card agreement. You apply, they send you a card with a boilerplate agreement, and if you don't agree to the terms you need to cancel the card. That's how any sensible bank should nip this problem in the bud.

This is such an obvious fraud.

In my jurisdiction that would be considered a void contract. Contracts not done in full voluntary agreement by 2 parties, with hidden clauses, are void almost everywhere.

Getting people to sign unwanted clauses because of ignorance is so 1800's.

The blockchain smart contract took care of this long ago what the breach of trust with credit card which have result to this law suit can not happen in bitcoin and on the blockchain because there is no third party contract signing of documents in financial transactions done on the blockchain. The most problem we have in the traditional financial system is the centralized mode of operations which allow for third party involvement.