The bank harassed the customer for not paying their credit card bill and will now have to pay a compensation of 1 lakh rupees..

The Delhi High Court has provided significant relief to a customer in a case where a bank not only wrongly demanded payment for a credit card bill but also pressured the customer by sending a collection agent to their home. The case involved a fraudulent transaction of ₹76,777 on the customer's credit card.  Despite the customer informing the bank promptly, they still received a recovery notice. The court severely reprimanded the bank for this negligence.

How the whole matter began
In January 2022, Citibank issued a credit card to this customer. In April 2022, there were several failed login attempts on the card, leading to its blockage. The bank immediately issued a new card in the name of security, but the customer stated that they had neither requested a new card nor activated it.

During this time, the most shocking incident occurred: fraudsters somehow managed to change the customer's registered mobile number. The bank sent messages to the old number, but the customer was unaware of this change. OTPs started going to the new number, and on April 6th, a transaction of ₹76,777 was made.

The fraud was discovered only when the statement arrived.
On April 12th, when the customer received the card statement via email, they discovered that a new card had been issued in their name and a large sum of money had been spent on it. They filed a complaint with both the bank and the cyber cell on the same day. The bank initially temporarily reversed the amount pending investigation, but a few months later, it suddenly closed the complaint and started demanding the full balance, including interest and penalties.

The matter escalated to the point where the bank sent a collection agent to their home. According to the customer, the agent also threatened them, after which, distressed, they initiated legal action.

Even the RBI was not helpful.
The customer filed a complaint with the RBI's Banking Ombudsman twice, but each time their application was rejected on technical grounds without a hearing. Sometimes it was stated that the complaint was filed through a lawyer, and other times it was claimed that a column in the form was filled incorrectly. The Delhi High Court strongly objected to this approach and stated that the Reserve Bank of India's Integrated Ombudsman Scheme 2021 is meant to help people, not to dismiss complaints without a valid reason.

What did the High Court say?
The court clearly stated that even if a customer accidentally shares their OTP, the bank should have a system in place to immediately block the card. While the complaint is pending, the bank cannot levy penalties, late fees, or initiate recovery proceedings. Furthermore, it is completely unacceptable for collection agents to visit the customer's home and threaten them.

The court ordered the bank to pay the customer ₹1 lakh in compensation, refund the entire fraudulent amount, and immediately rectify their CIBIL score. The High Court also directed the RBI to make its Ombudsman Scheme more consumer-friendly.

Why is this decision important?
This decision is not just a victory for one customer, but a precedent for all bank customers. The court clearly stated that blaming customers in cases of digital fraud is an easy way out, but this approach is unacceptable. The bank, the regulator, and the ombudsman all have a responsibility to maintain consumer trust.

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