credit card bill
Delhi High Court gave a big relief to the customer in a case in which the bank not only wrongly asked for the credit card bill but also put pressure on the customer by sending the collection agent to his home. The matter was that a fraudulent transaction of Rs 76,777 had taken place on the customer’s credit card, after which the customer informed the bank in time, yet he received a recovery notice. After which the court pulled up the bank severely for this negligence.
How did this whole matter start?
Citibank had issued a credit card to this customer in January 2022. In April 2022, several wrong login attempts were made on the card, due to which the card was blocked. The bank immediately issued a new card in the name of security, but the customer said that he had neither asked for a new card nor activated it.
During this time, the most shocking thing happened, the fraudsters somehow succeeded in changing the registered mobile number of the customer. The bank sent messages to the old number, but the customer had no idea about this change. OTPs started going on the new number and a transaction of Rs 76,777 was made on 6 April.
The fraud was discovered only when the statement came.
It was only when the customer received the card statement on email on April 12 that he came to know that a new card had been created in his name and a huge amount had been spent on it. He filed a complaint with both the bank and the cyber cell the same day. The bank initially returned the amount temporarily pending investigation, but after a few months suddenly closed the complaint and started recovery from them by adding the entire balance, interest and penalty.
The matter escalated so much that the bank sent a collection agent to his house. According to the customer, the agent also threatened him, after which he got upset and started a legal battle.
Also read:
You will get money in a few minutes, know 7 big benefits of personal loan app
Even RBI was not helpful
The customer complained twice to the Banking Ombudsman of RBI, but each time his application was rejected without hearing due to technical reasons. Sometimes it was said that the complaint was filed through a lawyer, and sometimes it was said that the column in the form had been filled wrongly. The Delhi High Court expressed strong objection to this attitude and said that the Reserve Bank-Integrated Ombudsman Scheme 2021 is to help the people, and not to dismiss complaints without any reason.
What did the High Court say?
The court clearly said that even if the customer shares the OTP by mistake, the bank should still have a system by which it can block the card immediately. As long as the complaint is pending, the bank cannot send the penalty, late fee or recovery. Also, it is completely unacceptable for a collection agent to threaten a customer by visiting his home.
The court ordered the bank to pay compensation of Rs 1 lakh to the customer, refund the entire defrauded amount and immediately correct his CIBIL score. Along with this, the High Court said that RBI should make its Ombudsman Scheme more consumer-friendly.
Why is this decision important?
This decision is not just a victory for one customer but is an example for all bank customers. The court clearly said that blaming customers in digital fraud cases is an easy way out, but this method is not acceptable. It is the responsibility of the bank, regulator and ombudsman to maintain consumer trust.