(b) Harassment by the card-issuing bank: Bank executives call on the pretext of increased the credit limit for the customer and then sell other products.

(c) Incorrect or pending bills: This is a common complaint. At times, the bank may charge interest on the billed amount, despite this being paid on time. There have been complaints about bills claiming pending repayments months after the user has terminated the card contract. Credit card services are terminated only once the customer clears his bills and makes a written request to close the account.

(d) Cards issued without information: At times, customers are issued credit cards without even asking for it. A customer sure of not wanting the card can just dispose it and inform the bank. However, in some cases, such cards are issued and an annual service fee is charged. It is only later, when the customer is saddled with a huge bill or harassed by recovery agents for non-payment of dues, does he learn of the card issued in his name, inspite of having declined the offer.

How are grievances addressed and to what extent?
First, one should take up the grievance with the card issuer. If the issue is not resolved in a month, it will have to be taken up with the Banking Ombudsman at the Reserve Bank of India (RBI) office. Keeping written proofs of one’s interactions with the bank regarding the issue would help.

However, the Ombudsman will not entertain complaints which are more than a year old. It will ask the bank for its report before deciding and this may delay decisions. In case one is not satisfied with the order, he/she can further approach the appellate authority.

The RBI has issued strict guidelines against banks activating credit cards without the consent of the recipient and billing him/her for the same. The issuing bank is not only liable to reverse the charges, it must also pay the customer a penalty which is twice the value of the charges reversed.

Why do you need a clear credit record?
Having a pending issue over credit cards impacts one’s credit scores maintained by credit rating agencies like CIBIL, Equifax and others. This could result in the customer being refused a credit card or loans even by other banks. In case the loan is approved, the bank charges a higher interest.