If you are stuck in such a situation, here is what to do.

Mr. Sameer Verma, a resident of Nagpur, found himself in a distressing situation with his credit card provider, Apex Finance Bank. On the due date, June 5th, he attempted to pay his credit card bill using the bank’s official mobile application, choosing ‘SwiftPay UPI’ as his payment method. The transaction was marked as successful on the SwiftPay app, and the amount was immediately debited from his linked savings account.

However, upon being redirected back to the Apex Finance Bank app, a message popped up indicating that the transaction had failed. Confused, Mr. Verma immediately contacted the bank’s customer service. They advised him to wait for 24 hours for the payment to reflect. When the amount did not get credited to his card account, he contacted them again. To his shock, the bank flatly denied receiving any payment. Consequently, they began levying late payment fees and interest on his outstanding balance. Soon after, he started receiving persistent calls from recovery agents.

Frustrated, Mr. Verma lodged a formal complaint with the banking regulatory authority. The authority investigated and confirmed that the transaction from his end was indeed successful and the funds had been transferred. They instructed him to follow up with his bank. Despite this verification, Apex Finance Bank continued to deny receipt of the funds and the recovery calls persisted, causing him significant mental anguish.

Advice in such cases

• Gather all your documents. This includes screenshots of the successful transaction, the UPI transaction ID, your bank account statement showing the debit, and any emails or reference numbers from your conversations with the bank.
• Send a formal, written complaint via registered post or email to the bank’s designated Nodal Officer or Grievance Redressal Cell. Clearly state the facts, attach all evidence, and demand an immediate resolution.
• Do not get intimidated by recovery agents. Inform them that the matter is under dispute and all communication should be in writing.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

Such matters are primarily governed by consumer protection and banking regulation laws. The key legal provisions are:

• The Consumer Protection Act, 2019: The bank’s failure to credit a successful payment and subsequent levying of charges and initiation of recovery proceedings constitutes a “deficiency in service” and “unfair trade practice.” You can seek not only the reversal of charges but also compensation for mental harassment and litigation costs.
• Reserve Bank of India (RBI) Guidelines: The RBI has laid down strict guidelines for banks on grievance redressal, failed transactions, and fair practices for debt collection. Recovery agents are prohibited from harassing or intimidating customers. Any violation can be brought to the notice of the Banking Ombudsman.
• Bharatiya Nyaya Sanhita, 2023 (BNS): If the actions of the recovery agents escalate to threats, intimidation, or extortion, relevant sections of the BNS can be invoked by filing a police complaint.

If you are the complainant

As the person who has been wronged by the bank, you are the complainant. Your course of action should be systematic:

• After the bank fails to resolve the issue within 30 days, file a complaint with the Banking Ombudsman. This is a dedicated authority to resolve disputes involving banks.
• Send a comprehensive Legal Notice to the bank through an advocate. This notice will detail your grievance, the evidence you possess, the laws they have violated, and the relief you seek. It often prompts banks to resolve the matter to avoid litigation.
• If the issue remains unresolved, you can file a case against the bank in the appropriate Consumer Disputes Redressal Commission (District, State, or National, depending on the claim amount).
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

Being a victim of such unfair banking practices can be stressful. It is crucial to act decisively to protect your rights.

• Document every interaction. Keep a log of calls from recovery agents, including the date, time, and the agent’s name. If possible and legally permissible in your jurisdiction, record threatening calls.
• Insist on written communication. Refuse to engage in verbal arguments with bank representatives or recovery agents over the phone. Direct them to communicate via email or letter.
• Do not make any further payments towards the disputed late fees or interest until the core issue is resolved, as this might be construed as an admission of liability.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

Initially, the police may be reluctant to intervene, as a payment dispute is considered a civil matter. They will likely advise you to approach the Banking Ombudsman or the Consumer Court. However, police involvement becomes necessary if a criminal offense is committed. If recovery agents threaten you, use abusive language, or show up at your home or workplace at odd hours causing a nuisance, you can file a complaint. In such a scenario, the police can register a First Information Report (FIR) for offenses like criminal intimidation or extortion under the Bharatiya Nyaya Sanhita (BNS).

FAQs people normally have

• Will this dispute negatively impact my credit score?
  Yes, the bank will most likely report the non-payment to credit bureaus like CIBIL, which will lower your credit score. Once the dispute is resolved in your favor, you must ensure the bank rectifies this reporting. You can also claim compensation for the damage to your creditworthiness in your consumer complaint.
• Can the bank legally use recovery agents while the payment is under dispute?
  According to RBI’s fair practice codes, banks should not resort to coercive recovery measures when a legitimate dispute is pending. However, they often do. A legal notice from your lawyer can be very effective in stopping such harassment.
• Who is responsible if the payment failed between the UPI app and the bank?
  As per RBI’s digital transaction guidelines, the responsibility for resolving such issues lies with the beneficiary bank (your credit card provider). They are required to coordinate with the payment gateway and the remitting bank to trace the funds. The customer, having provided proof of debit, has fulfilled their obligation.

What evidence is required?

Strong evidence is the backbone of your case. You must meticulously collect and preserve:

• The screenshot from the UPI app showing a successful transaction, including the UPI Transaction ID.
• Your bank account statement clearly showing the amount debited for the credit card payment.
• Copies of all written communication, including emails and letters, exchanged with the bank.
• The complaint number or reference provided by the bank’s customer service and the regulatory authority.
• A detailed log of calls from recovery agents.
• A copy of the legal notice sent to the bank.

How long will the investigation take?

The timeline for resolution can vary significantly:

• Bank’s Internal Redressal: Banks are mandated to resolve complaints within 30 days.
• Banking Ombudsman: The process here can take anywhere from 4 to 12 weeks.
• Consumer Commission: Litigation in a consumer court is a more formal process and can take several months to over a year, depending on the court’s workload and the complexity of the case.

Advocate Sudhir Rao, Supreme Court of India