Consumer organisation Coimbatore Consumer Cause has urged banks not to debit amount from a customer’s account towards insurance policy, without informing the customer. According to K. Kathirmathiyon, secretary of Coimbatore Consumer Cause, a consumer court at Tirunelveli recently asked a nationalised bank to pay to a customer compensation of Rs. 10,000 for deficiency in service and Rs. 4,000 towards cost of the case for debiting amount without informing the customer.
The bank had to pay Rs. 14,000 for debiting Rs. 12 from the account of the customer. Some banks are debiting amount for insurance without informing the customers and the amount is returned if the customer questioned it. However, many customers are not even aware of this practice.
“Debiting amount from the account without the consent of the customer is a serious offence and just crediting the amount bank does not absolve the bank from its illegality,” Mr. Kathirmathiyon said.
Even the Reserve Bank of India and Insurance Regulatory and Development Authority have asked banks not to do so. “We are receiving complaints from customers in this regard and we propose to take up the matter with the Government,” he said.
Affected customers can approach the consumer court for compensation or they could prefer a complaint with the consumer body, he said.
The bank had to pay Rs. 14,000 for debiting Rs. 12 from the account of the customer. Some banks are debiting amount for insurance without informing the customers and the amount is returned if the customer questioned it. However, many customers are not even aware of this practice.
“Debiting amount from the account without the consent of the customer is a serious offence and just crediting the amount bank does not absolve the bank from its illegality,” Mr. Kathirmathiyon said.
Even the Reserve Bank of India and Insurance Regulatory and Development Authority have asked banks not to do so. “We are receiving complaints from customers in this regard and we propose to take up the matter with the Government,” he said.
Affected customers can approach the consumer court for compensation or they could prefer a complaint with the consumer body, he said.