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.
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.