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New Delhi Consumer Forum penalizes HSBC Bank

Rakesh Gupta in his complaint had alleged that he had been issued an HSBC credit card on understanding that no annual charges would be levied, yet after the first two months of usage the Bank started levying the charges

September 20, 2012 4:21 IST | India Infoline News Service
The New Delhi District Consumer Disputes Redressal Forum has ordered Hongkong and Shanghai Banking Corporation (HSBC) to pay Rs. 20,000 as compensation to its credit card holder (Rakesh Gupta) for adding his name in CIBIL’s defaulters list though he had paid all his dues.

Rakesh Gupta in his complaint had alleged that he had been issued an HSBC credit card on understanding that no annual charges would be levied, yet after the first two months of usage the Bank started levying the charges.

When Mr Gupta made a representation to the Bank about annual charges, the same were reversed temporarily; he said adding in 2006 he paid all the outstanding dues and asked the bank to close his credit card account.

Mr Gupta alleged the bank, instead of closing his credit card, continued showing annual charges as outstanding and informed CIBIL that he was a defaulter, without giving him a notice. The Bank had sought dismissal of the complaint against it on the ground that the remedy available was through arbitration only.

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