A reader of our Advisory Services seek guidance in his case where he closed his Axis Bank Credit Card Account after having it for 5 years and never felt like accessing the credit line. Now Axis Bank has re-opened it and he writes as following seeking guidance under relevant Laws, Rules & Regulations guiding credit card operations in India.
I haven’t used the Axis Bank Credit Card for more that 5 years now during my last discussion with bank, requested them to close the account, which they did. Now bank is saying as per RBI guidelines, they had re-issued the chip card to me, which i have not asked for, i don’t know for which they sent they are asking me to pay 1500 rupees as the penalty charges.
It is waste of time for me to contact customer care every time and explain. I sent email to Axis Bank asking why is this charge levied but found no reply. I had been to bank head office in Bangalore and they said they do not handle the credit card issues. Asked me to contact customer care. When I did, they asked me to pay Rs 100 + Service tax as the amount due without which they will not close my account. I paid to protect my Credit History and Closed the Account. What can I do about this issue now ?
You have done the Right thing by paying the amount else Axis Bank Could have reported to Credit Bureaus Amount Outstanding and then on top of it Levy Late Fees and damage your credit history.
In this Case, lets list the RBI Guidelines Violations by Axis Credit Card, which are as follows. Section 6 of the RBI Master Circular on Credit Cards talks about “Protection of Consumer Rights”. Axis Bank is in violation of Section 6.1 (a) – Sending Unsolicited Card as the customer had already closed the account and ha not asked for it. It is also in violation of Section 6.1 (d) and Section 6.1 (f) as well.
What are Customer / Consumer Rights in this Case ?
First of all as detailed above, write to the Banking Ombudsman of Axis Bank about the violation and seek refund of the Rs 100 + Taxes Paid along with compensation. [Unlikely they will give any compensation]. Is it not Unfair Banking Practice ? Sure it is, however the RBI & Successive Corrupt Governments have only empowered Banks & Financial Institutions & Small Consumers are always at the Receiving End. If Axis Bank Ombudsman fails to reply favorably, then appeal the matter with Regional RBI Ombudsman where you will likely find justice, at least in this case.