The Supreme Court on Friday (December 20, 2024) allowed an appeal filed by banks challenging a 2008 order of the National Consumer Disputes Redressal Commission (NCDRC), which found charging more than 30% interest on credit card dues an unfair trade practice under consumer protection. Act.
The bench of Judge Bela Trivedi and Satish Chandra Sharma gave the verdict based on the appeal.
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A copy of the judgment is yet to come.
The NCDRC passed an order in 2008 on the issue that banks can charge credit card users interest ranging from 36 percent to 49 percent per annum in case of delay or default in payment within the stipulated time.
The Commission was concerned whether such a percentage interest was “Uddi”.
It finally concluded that “Banks charging interest at the rate of more than 30% per annum from credit card holders for failure to make full payment on due date or to pay the minimum amount, is an unfair business practice”.
The commission further said, “Penal interest can be charged only once for a period of default and should not be capitalized”.
It also found the charging of interest along with the monthly relaxation an unfair business practice.
published – Dec 20, 2024 11:03 pm IST