Interim relief for Citibank credit card holderHigh court decision can put credit card industry under scanner.
Apnaloan.com Research Bureau
02 Apr 2008
The High Court in Delhi is expected to set new laws for dispute and harassment cases related to credit cards in India. Justice Mukul Mudgal and S L Bhayana have provided a temporary relief to Desh Deepak, a Citibank credit card holder against whom Citibank had filed a suit for recovery of Rs. 3, 61,431. Citibank has filed a suit against Desh Deepak for defaulting in making payments, despite offering a structural payment plan. For now, the High Court has put a stay order on the verdict of the lower court. Though the matter is still under judgment, it can set new laws for credit card industry
As reported by The Economic Times, Kanchan Singh, representing Desh Deepak said "There are so many people like Desh who have no the means to fight against these global giants. I took the case on a pro bono basis to put up the fight. I am sure the honourable court will come out with a just decision."
Desh Deepak claims that interest charges are excessive and unjust. He had also claimed that Citibank had offered him settlement of account after payment of Rs 2 lakh. Citibank has denied both the claims in court.
Leading consumer activist, Pushpa Girimaji says that such incidents will keep on occurring until the credit card companies make all the information clear and put it in a separate package. "The customer is lost in the maze of rules and regulations, which can be as long as a thesis. Also, the banks need to improve their in-house redressal systems," she added.
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