Banks can’t deduct Membership Fee for Lost Credit Cards, RBL Bank ordered to pay compensation

- Advertisement -

The District Consumer Disputes Redressal Commission in Jalandhar, Punjab, held RBL Bank liable for deficiency in services for charging a membership fee, late fee, and other charges despite the complainant reporting that the credit card was lost and should be blocked. The complainant held a credit card issued by RBL Bank and was assured that no extra or hidden charges would be applied. In January 2019, the complainant lost his credit card and promptly informed the bank, requesting the card to be permanently blocked.

However, the bank informed him that he needed to pay the outstanding amount in order to block the card. The complainant made the payment, but later received calls from the bank demanding additional payments. The complainant argued that he had not used the card since losing it and requested its permanent blockage. The District Commission found that the bank wrongfully levied the annual fee, fine, membership fee, late fee, and other charges and directed the bank to return the excess amount charged, pay interest, and provide compensation for mental harassment and litigation expenses.

Bank’s Arguments and Commission’s Decision

The bank argued that the allegations required extensive evidence and were beyond the jurisdiction of the District Commission. It claimed that the complainant was not a consumer under the Consumer Protection Act since the card was blocked and no services were being provided. The bank also stated that there were complex legal and factual issues that rendered the complaint unsustainable. However, the District Commission noted that once the card was lost and no longer in the complainant’s possession, he could not have used it.

- Advertisement -

Despite this, the bank categorized the card as ‘L’ for lost instead of blocking it. The District Commission held that this categorization should have prompted the bank to block the card and cease further charges. The commission found that the bank wrongfully levied the annual fee, fine, membership fee, late fee, and other charges and ordered the bank to return the excess amount charged, pay interest, and provide compensation for mental harassment and litigation expenses.

- Advertisement -

Share this article...

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More News...

Latest

Finance Ministry to review Pension System, Meeting will be held on this date

Finance Ministry to review Pension System, Meeting will be held on this date

South Bihar Gramin Bank announced strike on 15 and 16 July

South Bihar Gramin Bank announced strike on 15 and 16 July

Salary of Kotak Mahindra Bank’s CEO; Check Salary, Allowances and other benefits

Salary of Kotak Mahindra Bank's CEO, Check Salary, Allowances and other benefits

Central Bank of India held Liable By NCDRC For Overcharging EMI

Central Bank of India held Liable By NCDRC For Overcharging EMI

State Consumer Commission Upholds Canara Bank’s Appeal in Motorcycle Theft Case

State Consumer Commission Upholds Canara Bank's Appeal in Motorcycle Theft Case

Consumer Case Against SBI Cards: Kolkata Commission Orders Full Compensation

Consumer Case Against SBI Cards: Kolkata Commission Orders Full Compensation

Consumer Forum Holds Union Bank of India Liable for ATM Transaction Error

Consumer Forum Holds Union Bank of India Liable for ATM Transaction Error

Bank of Maharashtra Recruitment 2024, 195 Vacancies, Download Notification PDF

Bank of Maharashtra Recruitment 2024, 195 Vacancies, Download Notification PDF

Which is the most powerful country in the world? Top 10 most powerful countries List [Updated]

Which is the most powerful country in the world? Top 10 most powerful countries List

Banker left her job to become YouTuber, She now earns Rs.8 crore a year

Banker left her job to become YouTuber, She now earns Rs.8 crore a year

Latest News