A financial nightmare for a Bengaluru-based professional has finally ended after a consumer court ruled against a major bank, restraining it from recovering a staggering sum of over Rs 14 lakh for a credit card he never physically possessed or used. The case highlights glaring security lapses in the banking process and the ordeal faced by customers in resolving such disputes.
The Unsolicited Call That Sparked a Crisis
The ordeal for Polepally Avinash, an employee at fintech firm ClearTax and a resident of Nayandahalli, began on January 31, 2023. He received a call from a person identifying himself as Rizwan, claiming to be an Axis Bank representative, with a pre-approved credit card offer. Trusting the pitch, Avinash shared his KYC documents including Aadhaar, PAN, and salary slips. Shortly after, he was informed that his application had been rejected, and he thought the matter was closed as no card ever reached his address.
However, months later, between July and August 2023, his life was upended when recovery agents started appearing at his doorstep. They demanded payment of dues amounting to nearly Rs 14.2 lakh on an Axis Bank credit card issued in his name. Avinash was shocked, consistently maintaining that he had never received the physical card and had certainly not spent such an enormous amount.
A Battle for Justice and a Damaged Financial Reputation
Faced with relentless recovery calls, visits, and threats, Avinash was forced to take legal action. His first step was to approach the Bengaluru East cybercrime police on July 6, 2023, filing a complaint against the bank's authorized agent. The bank, however, maintained that the card was active and payments had been made by an unknown person.
The fraudulent transaction severely impacted Avinash's financial health. He wrote to Axis Bank on January 10, 2024, highlighting that the alleged fake card had damaged his CIBIL score. Despite initial assurances, the bank allegedly went silent, while the recovery pressure continued unabated. Left with no choice, Avinash filed a formal consumer complaint in 2024, accusing the bank staff of unfair trade practices.
Consumer Court Slams Bank's Lapses, Grants Relief
The Bengaluru Additional District Consumer Disputes Redressal Commission heard the case. Notably, despite receiving notice, Axis Bank failed to appear before the commission, leading to proceedings ex parte (in its absence). The bench, comprising President Syed Anser Kaleem and members Sharavathi SM and Jyothi N, scrutinized the evidence.
The commission noted glaring inconsistencies and lapses. It observed that the bank had neither conducted a proper internal investigation nor lodged a police complaint about the suspected fraud, yet it aggressively pursued recovery from Avinash. Examining WhatsApp chats with the alleged agent, recovery records, and the police complaint endorsement, the bench remarked, "There is something fishy in the transaction, and it is obviously fraudulent."
In its order dated November 25, the commission delivered a decisive verdict. It directed Axis Bank to immediately stop all recovery attempts for the approximate Rs 14.2 lakh sum. Furthermore, holding the bank accountable for its conduct, the commission also ordered it to pay Rs 2,000 as litigation costs to the complainant, providing a semblance of justice after a prolonged battle.
