Have you ever been in a tussle with your bank’s services? It is quiet common to face such situations at some point of time. Complaints against banks can happen on anything like delay in cheque clearance, issuance of unsolicited credit cards and insurance policies, recovery of premium charges, charging of annual fee in a ‘free’ card, issuance of loans over phone, disputes over interest rates, wrong billing, and money not being dispensed at ATMs, non-settlement of insurance claims or even misbehavior of employees.
Please read the following factual examples for better understanding.
ATM TRANSACTION FAILS, BUT ACCOUNT DEBITED
It was observed that as per the banking ombudsman's orders the amount was credited to the complainant's account, but the bank did not pay the penal interest in terms of extant RBI instructions for the delayed period credit of around two months.
The bank was directed to pay penalty at Rs. 100 amounting to Rs. 6,500.
GOLD AUCTIONED DESPITE BORROWER NOT RECEIVING NOTICE
The complainant had pledged gold ornaments to get an agricultural loan payable after one year. Since the borrower did not turn up after one year for renewal or closure/ servicing the loan, the bank auctioned the gold after sending him a notice. The bank reported to the banking ombudsman that the gold was auctioned after serving notice to the complainant in advance. Based on this, the ombudsman closed the case.
In the appeal, the Appellate Authority (AA) observed that the notice, although sent by the bank ten days before auctioning, was returned un-served by the post office since the door was locked. In fact, the branch admitted to having received the notice back from the post office before auctioning the gold. But it went on with the auctioning programme. Since the auctioning was done without information to the customer, the AA directed the bank to return the auctioned gold to the customer by crediting the difference between the market value and the auctioned value. In addition, the customer was given a compensation of Rs 5,000 also
WRONG BILLING IN CREDIT CARD STATEMENT
An alleged fraudulent transaction worth Rs 8,557 was billed to the complainant's card towards a hotel bill. The same was reversed after four years by the bank giving permanent credit.
However, the bank statement reflected Rs 27,207 as outstanding on the credit card, which was due to charges for non-payment of the above alleged fraudulent transaction.
As the bank failed to resolve the issue even after a lapse of four years, the banking ombudsman concluded that there was deficiency of service on the part of the bank. Accordingly, the ombudsman advised the bank to reverse all the dues, issue ‘No Dues' certificate to the CIBIL (Credit Information Bureau (India) Ltd) and pay.
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How to fix your complaint:
Complaint registration: Approach the bank through phone / mail or visit the concerned branch personally to bring the matter to their notice and to get the required solution. Register a complaint in writing and get a written acknowledgement.
Escalation:
Once a complaint has been registered, the bank is supposed to respond to it within a week’s time. If they are not responding, or if you did not get a satisfying reply, you can approach the regional office or regional grievance Redressal officer. If the bank seeks more time to resolve the issue, give a maximum of 30 days, if their reason is justifiable. This period can vary from case to case.
Banking ombudsman: The banking ombudsman is a senior official appointed by RBI to redress customer complaints against deficiency in banking services. This system has been launched by the RBI to the banking grievance redressal. It works as an intermediary between the bank and the customers trying to bring both the parties to a settlement on the issue within a month.
If the bank is not responding within the committed period, or if you are not satisfied with the resolution, you can approach the banking ombudsman. The intimation can be made online, by post or by a personal visit. Ensure that you have all necessary documents to substantiate your claim. The banking ombudsman will provide a solution in consultation with the bank, or may reject your application if it is invalid or in complete.
There is a tendency to go directly to the ombudsman instead of approaching the bank first. It’s not a good practice. The set procedures should be followed while registering a complaint. Ombudsman will accept the complaint only if it is made within a year of the incident. Also, the ombudsman is not empowered to impose penalty to banks, but can only order redress of the complaint.
Appellate authority: If you are not satisfied with the decision passed by the banking ombudsman, you can approach the Appellate Authority of the banking ombudsman. Appellate Authority is vested with a deputy governor of the RBI.
Consumer court: A consumer forum, consumer court or a civil court is the last place to reach to get justice for your complaints. You can file a petition in person or through an authorised agent via registered post only. It should contain all facts, supporting documents and contact credentials in an orderly manner. The jurisdiction of the complaints is determined by the facts of the case and where the cause of action arises. The customer needs to serve a notice to the concerned bank before going to the consumer forum.
The ombudsman scheme makes it mandatory for every bank to display information about its grievance redressal system at its branches and website along with the address of the regional banking ombudsman.
Prevention better than cure:
Though there are genuine cases where customers have suffered due to a bank’s fault, in many cases, a lack of awareness of the customer has caused grievances. Always read the MITC (most important terms and conditions) brochure or agreements in case of loans before purchasing a product.
Always ask as many questions as possible before buying a product and ensure that you actually need it.
The main object while making complaints is to get it resolved at the earliest. Therefore, it is very important to address the appropriate person to resolve the problem effectively.
[Source: DNA News paper, The Hindu - Business Line, ]CLICK ON ANY OF THE FOLLOWING
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