Bank Ordered to Refund Credit Card Joining Fee for Unfulfilled Promotional Benefits
Promotional offers often influence consumers to purchase financial products. However, if a bank fails to honour the benefits promised at the time of selling a credit card, it may be held liable for deficiency in service and unfair trade practices. A recent decision of the District Consumer Disputes Redressal Commission, Mohali, reiterates this important consumer protection principle.

Background of the Dispute
The complainant obtained a premium credit card after bank representatives promised several promotional benefits, including complimentary flight booking vouchers and other travel-related offers. Relying on these representations, the consumer paid a one-time joining fee of ₹25,000.
When the consumer attempted to redeem the promised promotional codes for booking airline tickets, the booking repeatedly failed due to the unavailability of promotional seats. Despite repeated requests, emails and even a legal notice, the promised benefits were never provided.
The consumer therefore approached the Consumer Commission seeking a refund of the joining fee and compensation.

Bank’s Defence
The bank argued that:
The airline was a necessary party to the dispute.
It had merely acted as the card issuer.
The complainant had been informed about the redemption process.

Findings of the Consumer Commission
The Commission rejected these contentions. It observed that the promotional benefits were a significant factor in inducing the consumer to obtain the credit card and pay the joining fee.
The Commission further noted that the bank failed to produce convincing evidence supporting its defence. Mere assertions without documentary proof were insufficient.
Holding the bank guilty of deficiency in service and unfair trade practice, the Commission ruled that the consumer’s rights had been violated.

Relief Granted
The Consumer Commission directed the bank to:
Refund the ₹25,000 joining fee.
Pay 6% annual interest from the date of filing of the complaint until realization.
Pay ₹10,000 as compensation towards mental agony, harassment and litigation expenses.
Legal Significance
The ruling highlights that businesses cannot advertise attractive promotional offers to induce customers into purchasing financial products and later avoid responsibility when those promises remain unfulfilled.
Where promotional benefits form an essential part of the contract, failure to honour them may amount to deficiency in service under the Consumer Protection Act.

Conclusion
Consumers should carefully preserve promotional brochures, emails, advertisements and communication exchanged with banks or financial institutions. These documents can play a vital role in proving that the promised benefits formed part of the transaction.
This decision serves as a reminder that misleading promotional offers may expose banks and financial institutions to liability before consumer forums.

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Disclaimer: This article is intended solely for educational and informational purposes and does not constitute legal advice.