No late fee on disputed fraudulent card transactions: Delhi HC
New Delhi, Nov. 28 -- Banks cannot levy late fees, interest or any penalties on customers who report fraudulent credit card transactions, especially when their complaints remain unresolved, the Delhi High Court ruled on Thursday.
"The charging of late payment of fee, interest, etc., in such cases when customers have lodged complaints and that too without resolving the same, shall not be permissible," justice Prathiba M. Singh said in the verdict.
The ruling came in a petition filed by advocate Sarwar Raza, who was repeatedly pursued for repayment of a fraudulent transaction he said he never authorised. According to the petition, Citibank issued Raza a credit card in January 2022 without any request from him; despite his objections, he was a...
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