Consumer forum orders HDFC Bank to refund hefty amount charged illegally from a credit card holder

Ahmedabad, 28^th  November, 2012

In a case that exposes unfair trade practice adopted by a leading private sector bank, which charged a hefty amount from its credit card holder by wrongly interpreting rules despite timely payment of the due, The Consumer Disputes Redressal Forum, Ahmedabad (Additional) has ordered the bank to return the amount with interest from the day it was collected. The case was filed by Consumer Education and Research Society (CERS) on behalf of a city resident Dipak Sheth on 8 September 2009. The Forum issued its ruling on 22 October 2012.

Dipak got issued a credit card from the Bodakdev branch of HDFC Bank in 2005. Later on, he shopped worth Rs. 3,786 in December 2005 using his credit card. The payment for the credit card bill was due on 27 January 2006 and he deposited a cheque of UCO bank, Ahmedabad branch, on 24 January 2006. The check was realised on 31 January 2006 due to which HDFC Bank charged a late fee of Rs. 275. This fee was refunded afterwards. However, the bank also charged Rs. 110 towards outstation collection fee and Rs. 89 as finance charge, which was not refunded despite repeated requests by the client. The bank also collected Rs. 8,043 from the savings bank account of the card holder against his due of Rs. 199. No attention was paid to Sheth’s plea for refund of this amount charged illegally.

Dipak approached CERS about this kind of unfair practice by HDFC Bank. CERS moved to the consumer forum seeking refund of the amount along with interest. The forum ordered the private sector bank to refund Rs. 8,050 along with interest at the rate 9 percent from the day it was collected i.e. on 3 June 2008 and also to pay Rs. 1,500 to the complainant as compensation for the mental agony he has faced and Rs. 1,500 towards the litigation cost.

 

For further information please contact Ms. Pritee Shah (O) 079-27489945/46  

NRE deposits are emerging as an attractive investment option, according a report in theBusiness Standard today. “With global interest rates continuing to remain low, non-resident Indians (NRIs) can use the non-resident (external) rupee account (NRE) as an attractive option to park their funds,” said the report quoting experts.  For those who can’t tell an NRE account from an Non resident ordinary rupee account, here’s a quick guide.

As an NRI you can open two kinds of savings accounts in India— non-resident rupee accounts (NRE), and non resident ordinary rupee accounts.

Click Here for the full story

The Banking Codes & Standards Board of India (BCSBI) is an independent and autonomous watch dog to monitor and ensure that the Banking Codes and Standards adopted by the banks are adhered to in true spirit while delivering their services.

The Banking Codes and Standards Board of India has been registered as a separate society under the Societies Registration Act, 1860. Therefore, it would function as an independent and autonomous body.

The Banking Codes and Standards Board of India is not a Department of the RBI. Reserve Bank has agreed to lend it financial support for a limited period. It is an independent banking industry watch dog to ensure that the consumer of banking services get what they are promised by the banks.

To ensure that the Board really functions as an autonomous and independent watchdog of the industry, the Reserve Bank also decided to extend financial support to the Board by way of meeting its full expenses for the first five years. This was to enable the Board to reach its economic critical mass that will make it truly independent in its functioning and take a view on any bank without its existence coming under any threat. On its part, RBI would derive supervisory comfort in case of banks which are members of the Board. In substance, the Board has been set up to ensure that common man as a consumer of financial services from the banking Industry is in a no way at a disadvantageous position and really gets what it has been promised.

Click Here for their website

Code of Bank’s Commitment to Customers – August 2009

Code of Bank’s Commitment to Micro & Small Enterprises – August 2012

The Reserve Bank of India (RBI) has prescribed new guidelines on standardization of security features of cheques, which are aimed at enhancing customer safety and facilitating easier processing.

Please note that as per RBI guidelines, non CTS-2010 cheques should be withdrawn before December 31, 2012. Please go through the FAQs below to:

• Identify whether your existing cheque book is CTS-2010 compliant
• Request for a new cheque book, if required

Also, please note that RBI has advised all banks holding post-dated EMI cheques to arrange for replacement of non-CTS-2010 Standard cheques with CTS-2010 Standard cheques. If you have availed a loan and have given post dated cheques to your lending bank, do get in touch with them for advice on the next steps.

Should you have any other query, you can check with your existing Banker.

Frequently Asked Questions (FAQs) for CTS-2010 Standard Cheque System

Q1. How do I identify if my cheque book is CTS-2010 compliant?

Please look for the letters “CTS-2010” printed vertically on the cheque leaf (near the perforation on the left side)

If the letters “CTS-2010” are present here, your cheque book is CTS-2010 compliant

Q2. My cheque book is CTS-2010 compliant and the above feature is present in my cheque book. What do I have to do?

If your cheque book is already CTS-2010 compliant, you can continue using the same and there is no further action required.

Q3. My cheque book is not CTS-2010 compliant. How do I order a new cheque book?

In case your cheque book is not CTS-2010 compliant, please order a new one with your existing Banker as per the regular process. All cheque books issued now, will be CTS-2010 compliant