Around 24% of complaints received by the Banking Ombudsman offices are about disputes related to plastic money.
According to the Annual Banking Ombudsman Report 2010-11, the typical complaints include excessive charges, non-dispensation of money from ATMs, unsolicited credit cards, mis-sold insurance policies, settlement offers conveyed over the phone and wrong debits. Even at ET, a sizeable number of readers' queries are related to ATMs, credit and debit cards.
Disputes over wrong billing
It is very important that you go through your credit card/bank account statements carefully every month. If you find any wrong entry, bring it to the card issuer's notice immediately.
Typically, such bills state that the details will be considered correct unless the cardholder points out the discrepancies within 30 days. After all, you cannot wish away the dispute by avoiding the payment. If you do that, the interest and other penal charges will keep mounting, inflating your original outstanding amount.
Touch base with the company the moment you find any discrepancy, and if you do not receive a satisfactory response, write to the grievance redressal officer, with the nodal officer as the final stop at the card-issuer level.
"If the bank is unable to provide a solution within 15 days, you can take your grievance to the Banking Ombudsman for a resolution," says Madan Mohan, chief counselor with the ICICI Bank-supported Disha Financial Counselling.
Unsolicited cards
The Banking Ombudsman report mentions a complaint where a senior citizen was upgraded to a 'platinum' card. The card holder had requested for the literature to examine the offer, and the bank sent the platinum card along with it.
Later, he was billed an amount of 5,510.83, presumably the joining fee. Since he did not need the card, he requested the bank to cancel the same.
However, the bank continued to demand the outstanding on the platinum card. After the Banking Ombudsman stepped in, the bank reversed the card fee as well as other associate financial charges in addition to converting the platinum card into a lifetime-free card and confirmed NIL outstanding on the card.
Authorisation and settlement of loans over phone
Ranjit Mehta, a 67-year-old pensioner, was offered a personal loan by his credit card company and he accepted it - all over the phone and e-mail. No documents, no agreements and no signatures. The trouble started once he closed the loan after two years.
"When I called them up and told them that I wanted to clear the loan, they were fine with it. They also told me that no interest would be charged. Later, they demanded money on the grounds that the loan was not foreclosed. They said I should have asked for foreclosure and paid a penalty of 3%."
"The most important terms and conditions applicable to a loan product are mentioned in the sanction letter. In fact, it is obligatory on the part of the bank to give a sanction letter and get an acknowledgement from the applicant as a token of acceptance of the terms before disbursing the loan amount," points out VN Kulkarni, chief counsellor with the Bank of India-backed Abhay Credit Counselling Centre.
In the absence of a written agreement, seek clarification from the bank and approach the Banking Ombudsman if the bank refuses to give you a fair treatment. Better still, avoid accepting such loan offers over the phone.
Non-dispensation of money from ATM
Complaints of account getting debited despite the ATM not dispensing the cash are not rare. However, it can be a hassle when banks refuse to acknowledge the error immediately. To deter banks from delaying reimbursing the customers, the RBI has issued a series of directives regarding this matter.
Banks are required to pay a compensation of 100 per day to such customers if the bank fails to resolve the issue within seven days of the complaint being lodged. That is, provided you file the complaint within 30 days of the incomplete transaction.
Adverse reporting to CIBIL
The Banking Ombudsman report cites a resolved complaint where the bank reported the borrower as 'defaulter' with CIBIL in spite of full and final settlement.
As a result of the adverse CIBIL report, due to the bank's error, the complainant could not obtain a home loan. Also, the bank did not respond to the complainant's enquiries. Ultimately, the Banking Ombudsman instructed the bank to rectify the mistake and compensate the customer.
Remember, banks, as per their own code of commitment, are under obligation to update borrowers' records with credit information companies ( CIC) as soon as possible.
The Code states that if the account of a borrower is regularised after having been in default, the information will be passed on to the CICs in the subsequent monthly report. Therefore, ensure that you don't back down if the bank refuses to set your repayment record straight.
Finally, as is the case with all banking-related grievances, you can always knock on the doors of the Banking Ombudsman if you feel your complaint has not been addressed to your satisfaction.
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