India | Updated Jul 17, 2006 at 01:48pm IST

Citibank pays for forcing credit card

Kushboo Narayan, CNN-IBN

Mumbai: It's been a long battle in the consumer court for Charanjit Singh of Delhi.

Three years ago Citibank sent him a credit card he never asked for. Singh claims that he got the card cancelled but that did not stop the bills from coming.

Tired of haggling with people over the phone, Singh finally decided to drag the bank to the consumer court.

Says Charanjit Singh, "After two years of fighting, the court has taken strict action against them for this illegal practice and for harrassment to consumers. Citibank has also been fined a sum of Rs 10,000."

In its counter argument Citibank said Singh had approached the bank to issue him a credit card.

However, the consumer forum did not buy the argument and said there was nothing to prove this fact Consequently, Citibank was ordered to compensate Singh with Rs 10,000.

Supreme Court lawyer, S K Sharma says, "No service provider can force its services on a consumer who has not sought or paid for these services. And if a service provider does so, it does it at a peril of having to pay heavy damages."

In a response to queries by CNBC-TV18, Citibank says the case pertains to a pre-embossed card sent to the customer in 2003 adding that they have stopped sending out cards without a formal request after RBI's guidelines in 2005 against the practice.

(With inputs from Anumeet Kaur Bedi In New Delhi)

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