Legal Advice regarding Unfair Interest and Penalty Levied by ***** Bank on Credit Card
I have been a loyal customer of *** Bank Credit Card, using their credit card for the past 13 years with an impeccable track record. I have never defaulted or delayed a single payment in over a decade.
However, due to severe and unexpected financial crises last month, I was unable to clear my outstanding balance of ₹5,00,000 by the due date (13th of the month). This was my first ever default in 13 years. The bank subsequently generated a statement adding a ₹50,000 penalty and interest component to the bill.
I immediately emailed the bank explaining my financial distress, requesting them to waive the interest and penalty, and assuring them that the principal amount would be paid soon. I received no initial response. To honor my commitment, I sold my household gold and paid the full principal amount of ₹5,00,000 on the 25th.
Following my payment, the bank emailed me stating they would review my case within 4–5 days. However, on the very next day (26th), the bank generated a fresh statement levying an additional ₹75,000 as interest and penalties.
I am currently going through an acute financial crisis and have absolutely no funds left to pay this ₹75,000. The bank is refusing to support a long-term, loyal customer despite the principal amount being cleared.
My Questions:
- What legal remedies do I have under RBI guidelines against such compounding penalties during a financial crisis?
- Can I approach the Banking Ombudsman directly, and what is the procedure for a waiver request?
- How can I legally protect myself from harassment by recovery agents while this dispute is pending?
Thank you for your valuable guidance.