The Consumer Commission has held Punjab National Bank (PNB) guilty of unfair trade practice in a credit card dispute involving a Chandigarh resident, directing the bank to refund disputed charges, issue a No Due Certificate, and pay ₹10,000 as compensation and litigation costs.
According to the complaint filed before the District Consumer Disputes Redressal Commission, Chandigarh, the dispute arose after the complainant alleged irregularities in credit card billing and unjustified charges imposed by the bank. The resident contended that despite raising objections regarding the disputed entries and seeking clarification, the bank failed to provide a satisfactory resolution, resulting in financial inconvenience and prolonged correspondence.
The complainant further alleged that the bank continued to levy charges and interest despite disputes being flagged, which was described as a deficiency in service and an unfair trade practice under the Consumer Protection framework. The Consumer Commission, after examining the records and submissions of both parties, observed that the bank had not adequately justified the disputed charges or ensured proper grievance redressal in a timely manner.
In its order, the Commission directed Punjab National Bank to refund the disputed amount, issue a No Due Certificate to the complainant, and pay ₹10,000 towards compensation and litigation expenses. The Commission held that the conduct of the bank amounted to unfair trade practice and deficiency in service, thereby entitling the complainant to relief under the Consumer Protection Act.
PNB’s response to the order was not immediately available at the time of reporting. The bank has the option to challenge the decision before a higher consumer forum, as per legal provisions.
Legal experts note that under the Consumer Protection Act, banking institutions are required to ensure transparency in billing, timely grievance redressal, and fair treatment of customers. Credit card disputes, in particular, fall under consumer jurisdiction when allegations of arbitrary charges or service deficiencies arise.
Consumer rights advocates have welcomed such rulings, stating that they reinforce accountability in the banking sector and highlight the importance of proper documentation and communication between banks and customers. Similar cases involving disputed banking charges and credit card billing issues have been frequently observed in consumer commissions across the country, reflecting ongoing concerns about service transparency in financial institutions.
The ruling underscores the responsibility of banks to maintain fair practices and strengthen internal grievance mechanisms, ensuring that consumers are not subjected to undue financial burden due to procedural lapses or unresolved billing disputes.
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