0

  • Bookmarks
  • My Profile
  • Log Out
  • All Stories
  • About us
  • Brand Campaigns
  • Advertise With Us
  • Our Impact
  • Sign in with Email

By clicking the button, I accept the Terms of Use of the service and its Privacy Policy, as well as consent to the processing of personal data.

Don’t have an account? Signup

  • All Stories
  • About us
  • Brand Campaigns
  • Advertise With Us
  • Our Impact
  • All Stories
  • About us
  • Brand Campaigns
  • Advertise With Us
  • Our Impact
Authors
Logout
Bookmarks
Home Activism Consumer Rights Bank Account Holder? Here's Why You Need To Know About This Rs 10,000 Compensation

Bank Account Holder? Here's Why You Need To Know About This Rs 10,000 Compensation

Interestingly, the bank refunded the customer's money when he complained about the sudden 'fees'. But he decided to go to court anyway. Check out his case!

By Rinchen Norbu Wangchuk14 Sep 2018

google-news Follow Us

New Update
Bank Account Holder? Here's Why You Need To Know About This Rs 10,000 Compensation

On the evening of February 1, 2017, 39-year-old H Manjunath from Bengaluru received a text message from Kotak Bank Limited, stating that Rs 2,499 had been deducted from his savings account as per their special card protection plan.

Advertisment

Having no recollection of ever subscribing to such a plan, Manjunath eventually took the matter to a consumer court, which earlier this week ordered the bank to pay him a compensation of Rs 10,000 for "unfair trade practices", reports The Times of India.

Before taking the case to a consumer court, Manjunath called the bank manager the following day and raised a complaint about the money that was deducted from his account without his consent.

Responding to Manjunath, the bank official said it was part of the annual fee customers pay for their 'card protection plan'. While Manjunath did manage to get a refund from the bank after a month, he wasn't going to let this slide.

Advertisment

A card protection plan (CPP) is a service many banks offer their customers as a form of insurance for all their debit cards, credit cards, and retail cards--basically for all types of plastic.

"Simply put, it is a comprehensive card protection service in case of any loss, theft, fraud and other related emergencies. Apart from credit and debit cards, banks have extended this service to safeguard the details of other important documents like PAN card, Aadhaar card and several others essential documents. In short, this service is designed to come in handy in times of a crisis situation," says a Business Today report on the nature of these CPPs.

For representational purposes only. (Source: Flickr)
For representational purposes only. (Source: Flickr)

The benefits of such plans are standardised across all banks. Further, there are different grades of protection one can seek, provided an annual insurance premium of sorts is paid. This premium ranges from Rs 1,200 to Rs 3,000, depending on the service.

Advertisment

In the consumer court, the bank argued that it withdrew the sum from Manjunath's savings bank account only after he gave his consent to their bank representative and signed up for the CPP with a fee of Rs 2,499.

Also Read: Lost Your Credit/Debit Card? Here’s What You Should Do Immediately!

However, after hearing both sides for over 18 months, the judge ruled that the bank had failed to acquire an authorisation letter from the customer before deducting the sum. Despite the initial refund, the court ordered the bank to pay Manjunath Rs 5,000 in damages (harassment and causing mental agony), plus another instalment of the same sum for court expenses within 30 days.

Advertisment

Also Read: Banks Charge You Rs 25 For Every Failed Debit Card or ATM Transaction. Is It Justified?

This isn’t the first time that banks have been caught deducting ‘fees’ for their services without the consent of the customer. For the customers too, it is imperative to take legitimate grievances to a consumer redressal forum so that banks don’t run all over them.

So if you are a bank account holder, do keep a track of all fees and deductions you are charged, and remember this case's example, in case you are unfairly billed for a service you never signed up for.

Advertisment

(Edited by Shruti Singhal)

Like this story? Or have something to share? Write to us: [email protected], or connect with us on Facebook and Twitter.

Author
Rinchen Norbu Wangchuk
Tags: damages redressal insurance premium card poretction plan credit card fees bank account kotak bank Aadhaar debit card Consumer Court compensation PAN card bengaluru Karnataka
Subscribe to our Newsletter! Be the first to get exclusive offers and the latest news
newsletter_logo

You May Also like
Read the Next Article

Subscribe to our Newsletter!



Quick Links

  • Advertise With Us
  • Work with us
  • Contact Us
  • Privacy Policy
  • Terms of use
  • Grievance

  • Sustainability Stories
  • Startup Stories
  • Travel Stories
  • Farming Stories
  • Education Stories
  • Health care Stories
  • Visual Stories
  • Changemakers Stories
  • Culture Stories
  • History Stories
  • Food Stories
  • Innovation Stories
  • Wildlife Stories