Wellness expert wins Rs 1.1 lakh against banking giant in Thane

THANE: A prominent wellness expert was awarded Rs 1.1 lakh in compensation after successfully challenging a major multinational banking corporation over improper credit card blocking and cancellation. The Thane District Forum ruled against the banking giant in a case that highlighted lapses in KYC compliance handling and customer communication.
The District Consumer Disputes Redressal Commission, Additional Thane, delivered a comprehensive order on January 7, 2025, after hearing representatives from both parties. The Commission found the bank provided deficient services to the complainant, directing them to pay Rs 1 lakh as compensation for deficient services and mental harassment, along with Rs 10,000 for litigation costs.
The complainant, Rekha Choudhari, maintained platinum cardholder status with the bank for over a decade. The dispute arose when the bank blocked a supplementary credit card on January 24, 2020, citing KYC non-compliance, despite documentation showing that the required KYC details were submitted on January 16, 2020, with the bank's acknowledgment. The card blocking proved particularly problematic as it coincided with the complainant's scheduled online sale through Shopify, where the blocked card was linked for payment processing.
The Commission noted that the bank failed to provide prior notice of the blocking and could not substantiate their claim of incorrect KYC submission. The matter escalated when the bank blocked the primary card in March 2020 and subsequently cancelled all associated cards in April 2020, citing outstanding dues of Rs 11,50,213.14. The Commission's investigation revealed that these dues were settled by the complainant on September 8, 2020, contrary to the bank's claim of payment in September 2021.
A key point in the Commission's ruling concerned the bank's inconsistent handling of KYC requirements, particularly questioning how the supplementary card was later unblocked based solely on a telephone call if strict RBI guidelines were being followed.
While the Commission did not grant the complainant's request for card restoration or the claim for Rs 1 crore in damages, it awarded Rs 1 lakh as compensation for deficient services and mental harassment, plus Rs 10,000 for litigation charges.