Harassed by a credit card recovery agent, the bank will have to pay a compensation of ₹1 lakh. Learn the full story.

Raza filed a complaint with the RBI twice, but both were rejected. The first complaint was filed through an advocate, while the second was rejected because he filed the complaint directly with the RBI instead of the bank.

Credit Card Fraud Transactions: Digital transactions, from UPI to credit cards, have grown rapidly these days. Banks offer various offers on credit cards from time to time, but complaints of credit card holders being harassed by recovery agents are also frequently reported. One such case reached the Delhi High Court, where a man named Sarwar Raza received significant relief. Fraudulent transactions worth ₹76,777 were made using his credit card through Paytm, Flipkart, and other platforms. Raza told the court that despite informing the bank, the bank sent him a notice and sent a collection agent to his home.

Major Relief from the Court

According to the Economic Times, Raza filed two complaints with the RBI, but both were rejected. The first complaint was filed through an advocate, while the second was rejected because he filed the complaint directly with the RBI instead of the bank. After a lengthy legal process, the Delhi High Court ruled in Raza's favor and directed the bank to pay him ₹100,000 as compensation for the inconvenience caused.

In addition, the court ordered that all fraudulent transactions made using the credit card be refunded and Raza's CIBIL score be restored.

What is the whole matter?

The whole matter is that Raza, himself an advocate in Delhi, was issued a credit card by Citibank in January 2022. On April 5, 2022, his card's online password was disabled due to multiple incorrect attempts. That same day, the bank issued a second credit card and deactivated the first one. Surprisingly, Raza's mobile number was also changed at the fraudsters' request, though Raza was unaware of this. He stated that the second credit card was issued without his knowledge.

Raza complained to bank customer service, but was told that the new card would not appear in bank records until it was activated. On April 6th, fraudulent transactions were made using this unactivated card. Because of the change in mobile number, Raza was not alerted. He only discovered these transactions when he received his statement on April 12th—even though he had never activated the card.