Unauthorized Credit Card Transactions – What to Do When Bank Refuses to Help

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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.

Unauthorized Credit Card Transactions - What to Do When Bank Refuses to Help

Mr.X approached me when X Bank was demanding payment for unauthorized transactions worth Rs. 1,00,000 on his credit card. The transactions occurred at 03:00 AM on DD/MM/YYYY while he was sleeping. He immediately called the bank upon discovering the fraud but was met with rude behavior and dismissive responses. The bank refused to acknowledge the unauthorized nature of these transactions despite Mr.X providing clear evidence that he was not involved. They continued sending collection notices and threatened legal action. The bank’s customer service claimed Mr.X must have shared his details or PIN, which was completely false. This is a clear case of banking negligence and violation of RBI guidelines regarding unauthorized transactions.

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.

File a written complaint with the bank immediately documenting all unauthorized transactions. Report the fraud to local cyber crime police within 24-48 hours. Contact RBI Banking Ombudsman if bank refuses cooperation. Block your card immediately and request new credentials from the bank.

Applicable Sections of Law

Under BNS (Bharatiya Nyaya Sanhita), Section 318 deals with cheating and fraudulent transactions. Section 319 covers dishonest misappropriation of property. BNSS (Bharatiya Nagarik Suraksha Sanhita) Section 173 allows for investigation of cyber crimes. RBI guidelines mandate banks to provide zero liability protection for unauthorized transactions reported within specified time frames. Consumer Protection Act 2019 also provides remedies against deficient banking services.

If You Are the Complainant

  • Immediately file FIR at cyber crime police station with all transaction details
  • Submit written complaint to bank with timeline of events and evidence
  • File complaint with RBI Banking Ombudsman within 30 days if bank doesn’t respond
  • Maintain records of all communications with bank representatives
  • Request bank to provide CCTV footage and transaction logs for investigation
Unauthorized Credit Card Transactions - What to Do When Bank Refuses to Help

If You Are the Victim

  • Block your credit card immediately through phone banking or mobile app
  • Change all online banking passwords and PINs associated with your accounts
  • Monitor your credit report for any suspicious activities or new accounts
  • Keep detailed records of all unauthorized transactions with screenshots
  • Report to bank within 3 working days to claim zero liability protection as per RBI guidelines

How the Police Behave in Such Cases

Cyber crime police generally take credit card fraud cases seriously as they fall under their specialized jurisdiction. They typically register FIR under relevant BNS sections and request transaction details from banks. Police may ask for technical evidence and coordinate with bank’s fraud investigation team. However, investigation progress can be slow, and victims need to follow up regularly for updates on case status.

FAQs People Normally Have

Will I be liable for unauthorized transactions? No, RBI guidelines provide zero liability protection if reported within stipulated time.

How long does bank investigation take? Banks must complete investigation within 90 days as per RBI norms.

Can I get refund immediately? Banks should provide provisional credit within 10 working days during investigation.

What if bank refuses to help? File complaint with RBI Banking Ombudsman for resolution.

Unauthorized Credit Card Transactions - What to Do When Bank Refuses to Help

What Evidence Is Required?

  • SMS alerts and email notifications of unauthorized transactions
  • Bank statements showing disputed transactions clearly
  • Location proof showing you were elsewhere during transaction time
  • CCTV footage if transactions occurred at ATM or merchant location
  • Written communication records with bank customer service
  • Phone call recordings if available from bank interactions
  • Credit card physical possession proof during fraud timing

How Long Will the Investigation Take?

Bank’s internal investigation typically takes 30-90 days as per RBI guidelines. Police investigation can extend 6-12 months depending on complexity and technical evidence required. RBI Banking Ombudsman provides resolution within 30-45 days. Consumer court proceedings may take 1-2 years for final resolution if case escalates to litigation level.

Advocate Sudhir Rao, Supreme Court of India

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