Team Goemkarponn
New Delhi: In a significant move to address consumer grievances, Member of Parliament Shri Sadanand Shet Tanavade brought attention to the plight of citizens facing financial distress due to prolonged credit card disputes and erroneous CIBIL reporting during a recent session of the Rajya Sabha in New Delhi.
This issue has been exacerbated by coercive recovery practices employed by banks and third-party agencies, often leaving individuals with minor dues escalating into substantial financial burdens.
At the heart of the issue are unresolved credit card disputes, where consumers have been unknowingly issued cards to meet sales targets, only to face unexpected charges.
These minor dues can balloon into lakhs due to excessive interest, penalties, and unjustified fees, pushing consumers into financial turmoil.
Tanavade highlighted numerous cases involving fraudulent transactions, overcharging, incorrect billing, and unjustified penalties imposed by banks and credit card companies. Despite consumer complaints, financial institutions have failed to resolve disputes within stipulated timelines, instead levying additional charges and appointing recovery agencies that harass consumers.
Shockingly, even time-barred cases, some dating back 15 to 20 years, are still being pursued under legal provisions, causing undue hardship for consumers. This raises questions about whether banks lack evidence or are at fault. A major concern is the arbitrary sale or transfer of consumer accounts to third-party agencies without consent, leading to aggressive and unethical recovery practices. Even when individuals attempt to settle their dues, their CIBIL scores remain adversely affected, restricting access to credit, home loans, and employment opportunities.
Tanavade urged the government to implement immediate corrective measures, emphasizing the need for strict regulatory oversight, clear timelines for dispute resolution, restoration of CIBIL scores through structured credit repair mechanisms, and consumer rights protection laws to safeguard citizens from financial harassment and ensure fair banking practices.
