|Mr. M.Rajeshwar Rao, Banking Ombudsman (New Delhi) has asked the customers to pay their credit card dues before filing a complaint. Mr. Rao has suggested that it is interest of customers to do so, because in case the decision is announced in favor of the card company, the customer has to pay penalties.
He asked the customers to be proactive and read the terms and conditions of the card, which would prevent the disputes to arise in the first place. In case of outstanding dues, the customer is always stands a chance of paying more if the decision is ruled against him/her.
There is a high interest rate on late payment of the amount in case the decision is in favor of the company and the customer has to bear it. While, if he pays before the complaint is lodged, there is no risk, Mr. Rao said.
The customer must also understand the billing cycle and be concious of the card's security, Mr. Rao added.
The offices of Banking Ombudsman across the country received nearly 67,000 complaints , out of which nearly a fourth were related to credit cards.
Banking Ombudsman is a quasi-judicial body set up by the RBI to resolve disputes regarding banking service, and covers 27 services offered by the bank.