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Banks Will Be Penalised for Credit Card Harrassment

Recently, the Reserve Bank of India (RBI) pronounced that banks will have to pay a penalty for harrassing customers over misuse of unsolicited credit cards. If a credit card is sent and activated without the customer’s consent then the customer can claim compensation from the bank. The guidelines mentioned that – the card issuing bank will not onlt have to reverse the charges but also will have to pay penalty amounting to twice the amount reversed to the customer. Also, the persion can approach the Banking Ombudsman who will ask the issuing bank to compensate the customers for harrassment, mental anguish, expenses incurred and loss of time. Any loss arising out of unsolicited credit card is the responsibility of the issuing bank. RBI has also asked banks to send bills/statements on time and give atleast 15 days time to clear their dues.

After the launch of credit card in India, it picked up quite quickly. The banks also marketed their credit cards very aggressively. This has led to many errors and frustration for customers. Typically, credit card issuing banks make money when we revolve our money or other fines/penalty like late fees etc. So keep a check on the due dates. Its usefulness depends on how you use it. With the RBI tightening the rope, hope things will be little better soon.