Credit Card Late Fee Dispute – Bank Charging False Late Payment Charges Despite Timely Payment

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by

Adv Sudhir Rao
in

One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Credit Card Late Fee Dispute - Bank Charging False Late Payment Charges Despite Timely Payment

Mr.X approached me with a serious banking dispute involving X.Bank charging Rs. 41,000 in false late fees on his credit card. Mr.X had paid his credit card dues via cheque on DD/03/2016, but X.Bank claimed they received the payment only on DD/04/2016. However, Mr.X possessed transaction records from Y.Bank where he held his account, clearly showing “cheque payment received” on the earlier date. His bank ledger and transaction details contradicted X.Bank’s claim about the payment receipt date. This discrepancy led to substantial late fee charges being wrongfully imposed on Mr.X’s account, creating financial distress and damaging his credit history.

Advice in Such Cases

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 to 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.

  • Immediately gather all payment records, bank statements, and cheque clearance details
  • File complaints with Banking Ombudsman within 30 days of receiving bank’s final response
  • Maintain detailed communication records with the bank regarding dispute resolution

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS), Section 318 deals with cheating and dishonestly inducing delivery of property. Section 319 covers cheating by personation. Additionally, BNSS Section 173 governs investigation procedures for financial disputes. The Banking Regulation Act, 1949, and RBI guidelines on fair practices also apply. Consumer Protection Act provisions regarding deficiency in services are relevant for seeking compensation and removal of wrongful charges.

If You Are the Complainant

  • File written complaint with bank’s customer service within 30 days
  • If unsatisfied, escalate to bank’s nodal officer within 30 days
  • Approach Banking Ombudsman if bank fails to resolve within 30 days
  • Lodge consumer complaint for deficiency in banking services
  • Consider civil suit for damages if ombudsman relief is inadequate
Credit Card Late Fee Dispute - Bank Charging False Late Payment Charges Despite Timely Payment

If You Are the Victim

  • Preserve all original payment receipts and bank transaction records
  • Request detailed statement showing payment posting dates from your bank
  • Document all communication with credit card company regarding the dispute
  • Seek compensation for wrongful charges plus interest and mental harassment
  • Monitor credit report to ensure dispute doesn’t affect credit score negatively

How the Police Behave in Such Cases

Police typically register cases under BNS sections related to cheating and fraud when approached with banking disputes. They may initially suggest civil remedy but will act if prima facie criminal intent is established. Investigation involves collecting bank records, examining cheque clearance processes, and recording statements from both parties. Police cooperation improves with proper documentation and legal representation.

FAQs People Normally Have

Can I get compensation for wrongful late fees? Yes, Banking Ombudsman and consumer courts can order refund plus compensation.

How long do I have to dispute charges? Generally 30-60 days from statement date, but extendable with valid reasons.

Will this affect my credit score? Wrongful late payment reports can be removed after successful dispute resolution.

Can I sue the bank directly? Yes, but exhaust ombudsman remedy first for faster resolution.

Credit Card Late Fee Dispute - Bank Charging False Late Payment Charges Despite Timely Payment

What Evidence Is Required?

  • Original cheque copy with bank endorsement and clearance date
  • Bank account statements showing debit of payment amount
  • Credit card statements reflecting payment posting dates
  • Written communication between customer and bank regarding dispute
  • Transaction receipts and payment confirmation details
  • Credit report showing impact of alleged late payment
  • Expert testimony on banking processes if needed for complex cases

How Long Will the Investigation Take?

Banking Ombudsman typically resolves cases within 30 days of complete documentation. Consumer court proceedings may take 6-12 months depending on complexity. Police investigation for criminal aspects, if any, usually concludes within 60-90 days. Early legal intervention and proper documentation significantly reduce resolution timelines.

Advocate Sudhir Rao, Supreme Court of India

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