Written complaint acts as evidence, shields customer against liability

Follow this complaint escalation path: Bank's grievance cell, ombudsman, consumer commission, and then civil or criminal court

- SANJEEV SINHA

A recent case before the Delhi High Court has put the spotlight on how vulnerable customers are to unauthorised credit card transactions and poor grievance redressal by banks.

After a New Delhi-based lawyer was harassed for refusing to pay charges on a credit card he never asked for, nor activated, and for fraudulent transactions he never made, the court stepped in with strong directions to protect customers, tighten bank accountability, and push the Reserve Bank of India (RBI) to overhaul its complaint-handling system. The case serves as a wakeup call for all credit-card holders.

According to legal experts, when an unsolicited credit card arrives, the customer must treat it as an uninvited financial risk. The RBI's Credit Card and Debit Card Issuance Directions, 2022, prohibit such cards. Banks must cancel them immediately once the customer objects.

“The safest step is to send a written protest, via email or letter, to the bank’s nodal officer and customer care the same day, clearly mentioning the card’s last four digits and demanding cancellation. Written communication is essential, as phone calls carry little weight. Until the bank cancels it in its system, the card can still be misused even if never activated, so a quick written objection protects the customer from future liability,” says Vishal Gehrana, partner designate, Karanjawala & Co.