The Ernakulam District Consumer Disputes Redressal Commission has penalized RBL Bank Ltd. ₹1.10 lakh for violating assurances made at the time of selling a credit card. The Commission ruled in favor of the complainant, Arun M.R. of Koovapady, declaring the bank’s actions as unethical trading practices.
The complaint was filed after Arun purchased a credit card from RBL Bank based on the promise that there would be no hidden or annual charges. He used the card to make fuel purchases amounting to ₹50,000 but did not receive any payment reminders from the bank for over 40 days. His attempts to reach the bank for clarification were unsuccessful, prompting him to close the credit card account.
Initially, Arun settled the outstanding balance of ₹50,590 via UPI. However, the bank demanded an additional ₹4,718 for account closure, which later increased to ₹13,153, and finally, a legal notice was issued, demanding ₹14,859. Arun also claimed that the credit card number mentioned in the legal notice did not match the one he possessed. As a result of the confusion, Arun’s CIBIL score drastically dropped from 760 to 390, preventing him from securing bank loans. His repeated requests to the bank to restore his credit score and remove his name from the defaulter list went unanswered.
The Commission, led by President D.B. Binu and members V. Ramachandran and Sreevidhia T.N., criticized the bank for its failure to respond and for the distress caused to the complainant. “In today’s digital age, where communication and financial transactions should be seamless, a simple request to close a credit card account spiraled into a prolonged ordeal,” the Commission noted, acknowledging the impact on the complainant’s financial stability.
In its ruling, the Commission directed RBL Bank to remove Arun’s name from the CIBIL defaulter list and restore his original credit score. Additionally, the bank was ordered to pay ₹1 lakh in compensation for the damages suffered and an additional ₹10,000 for litigation costs.
This verdict highlights the importance of responsible banking practices and the consequences of misleading customers.
