Banking & Insurance

SBI faces backlash for repeatedly sending bills to a customer’s expired credit cards

SBI Cards

A Delhi consumer forum has ordered the SBI Cards & Payments Services Pvt. Ltd. to pay Rs 2 lakh to a person here for sending him a bill even after his card expired and blacklisting him for non-payment of charges. Monika A Srivastava, the president of the New Delhi District Consumer Disputes Redressal Forum, as well as Kiran Kausal and Umesh Kumar Tyagi, requested that the company pay M J Anthony, a former journalist, for “deficiency in providing services.”

Forum participants noted that the company had blacklisted him in the CIBIL system of wilful defaulters maintained by the RBI, resulting in the rejection of his credit card applications from another bank where he had maintained regular accounts for nearly two decades.

This Commission has concluded that SBI Cards & Payments Services Pvt. Ltd. has been inadequate in its services to the complainant. The damage caused to them in terms of credit rating cannot be monetarily compensated, thus they should be awarded punitive damage. Therefore, OP is ordered to pay Rs 2 lakh as compensation within two months of this order; failure to do so will result in a higher sum being payable.

Anthony filed a complaint seeking compensation on May 20, claiming that he had asked the company to cancel his card before its expiration and not renew it in April 2016.

The card was not used after April 9, 2016 and was destroyed according to rules, he said, adding that no payment was due at that time.

He received a letter from the company in September regarding the cancellation of his card, but continued to receive bills relating to the card despite his protest emails.

In addition to late payment charges and penalties, the bills amounted to Rs 2,946 by May 18, 2017.

In the same letter, the company advised him that if he did not pay the bill, it would adversely affect his credit history maintained by the credit bureau and would hamper future credit applications.

Furthermore, the company blacklisted him in the RBI’s CIBIL system of wilful defaulters, making it difficult for him to get a loan or a credit card.

The company denied the allegations during the argument.

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I'm Shruti Mishra, Editorial Director @Newsblare Media, growing up in the bustling city of New Delhi, I was always fascinated by the power of words. This love for words and storytelling led me to pursue a career in journalism. In this position, I oversee the editorial team and plan out content strategies for our digital news platform. I am constantly seeking new ways to engage readers with thought-provoking and impactful stories.

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