Bank blocks credit card but charges renewal fee; BMP takes action

Bank blocks credit card but charges renewal fee; BMP takes action

KARACHI: Banking Mohtasib (Ombudsman) Pakistan (BMP) has taken action against a bank for block credit card of a retired person but charged annual renewal fee.

The BMP in its annual report of the year 2022, noted that a complainant had informed that on his retirement in the year 2020, the bank blocked his Credit Card facility.

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However, despite the blockage of the card, the bank charged him annual renewal fee. He approached the Bank and asked it to either un-block his Credit Card facility or refund the annual renewal fee charged to him, but the complaint was declined by the Bank on the plea that the Credit Card facility cannot be renewed, being a pensioner account and renewal charges were recovered as per procedure. He thus escalated the matter with the Banking Mohtasib Office for redressal of his grievance.

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On taking up the matter with the Bank, It (the Bank) could not justify the blocking of Credit Card facility and recovery of renewal fee. The Bank was advised to review the Complaint.

After reviewing the Complaint, the Bank informed the BMP that blockage has been removed on Credit Card facility and necessary approval has been arranged for reversal of renewal fee of Rs4,640/- and the same will be reflected in next Credit Card statement. On contacting the Complainant over phone, he confirmed the resolution of his complaint and appreciated the support of BMP Office in resolving the issue to his entire satisfaction.