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Big shock to credit card users, up to 50 percent interest will be charged on delay in bill payment, strict order of SC

Siddhi Jain December 21, 2024 08:15 PM

Credit Card Bill Payment: There is bad news for customers using credit cards. From now on, they may have to pay up to 36-50 percent interest on late payment of credit card bills. In fact, the Supreme Court has canceled the decision of the National Consumer Dispute Redressal Commission (NCDRC) of the year 2008 regarding the late payment fee of credit cards, in which a maximum of 30 percent interest was decided as the late payment fee of credit cards. After this decision of the Supreme Court, banks will now be able to charge more than 30 percent i.e. 36-50 percent interest on late payment fees of credit cards.

What is the whole matter?

NCDRC had said in its decision in 2008 that charging 36 to 50 percent annual interest from credit card users is too much. Calling it a wrong trade practice, the interest limit for late payment fee was fixed at 30 percent. The Supreme Court has stayed this decision of NCDRC and this has given relief to the banks.

Which customers will be affected

This news is a shock for those customers who delay paying credit card bills. From now on, banks can charge up to 36-50 percent interest as late bill fee from such customers. The Supreme Court has issued an order in this regard on December 20 and this decision has been given by a bench headed by Justice Bela Trivedi and Justice Satish Chandra Sharma.

Banks had filed a petition in the Supreme Court

A 16-year long case can be seen behind this decision of the Supreme Court. On 7th July 2008, NCDRC gave its verdict in this case that no more than 30% interest can be charged to the customers who do not pay the full credit card bill by the due date. Many banks like HSBC, Citibank and Standard Charge Bank had filed an appeal against this decision and now on 20th September, the Supreme Court has given its verdict in favour of the banks.

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