Consumer Commission Holds Bank Accountable Over Credit Card Dispute
A District Consumer Commission in Chhattisgarh has directed a private bank to pay ₹60,000 to a credit cardholder after finding deficiency in service and unfair trade practices in its handling of disputed credit card dues.
The order, dated October 28, 2026, followed a complaint by a customer who alleged that the bank continued to demand outstanding payments despite his regular repayments. He also questioned the calculation of late payment fees, finance charges, interest, taxes and other charges.
The commission emphasised that banks have a responsibility to explain disputed credit card charges transparently, particularly when customers raise questions about their account statements.
Dispute Over ₹19,940 in Credit Card Dues
According to the complaint, the customer alleged that the bank had failed to properly adjust payments made towards his credit card account and continued to claim an outstanding amount of ₹19,940.
He further alleged that the bank threatened to report the account to credit information agencies, potentially affecting his CIBIL score and access to future financial services.
In an attempt to settle the dispute, the customer issued a cheque for ₹19,940 under protest in June 2016. However, he claimed that the bank refused to accept it. He subsequently sent the cheque through registered post, but the envelope was returned.
The bank maintained that the outstanding amount had been calculated according to the credit card agreement and applicable terms and conditions. It also argued that the complaint was time-barred and unsuitable for consumer proceedings.
Commission Questions Credit Reporting and Bank's Conduct
The commission, headed by president Dakeshwar Prasad Sharma along with members Nirupama Pradhan and Anil Kumar Agnihotri, examined the dispute and the bank's handling of the customer's concerns.
The order noted that the customer's CIBIL score was 616 in 2019 and had increased to 800 in 2026. However, the commission questioned the basis for the improvement while the credit card balance remained outstanding.
It also observed that the bank had a responsibility to clearly explain the charges applied to the account when the customer disputed their calculation.
The commission considered the refusal to accept the cheque and the failure to resolve the payment dispute as part of its assessment of the bank's conduct.
It ultimately held that the bank had committed deficiency in service and adopted an unfair trade practice.
Why Transparent Credit Card Reporting Matters
Credit information plays an important role in an individual's ability to access loans, credit cards and other financial products. Incorrect or poorly explained account information can create uncertainty for customers and affect their confidence in banking services.
The case highlights the importance of accurate payment adjustments, transparent billing and responsible communication when customers dispute outstanding balances.
Banks and financial institutions must ensure that customers receive clear explanations of charges and that payment disputes are handled through appropriate processes.
Key Takeaways for Credit Card Customers
Customers facing similar disputes should maintain payment receipts, account statements, written communication and copies of settlement attempts.
They should also regularly review their credit reports and raise disputes when they identify inaccurate information. Keeping a documented record can help establish the sequence of events if a complaint needs to be escalated.
The Chhattisgarh commission's order reinforces the importance of accountability in credit card services and the need for financial institutions to handle customer grievances transparently.
