Key Supreme Court ruling comes in case involving capping of charges on late credit card bill payment

Dec 20, 2024

Synopsis
The national consumer court had in 2010 restrained banks from charging interest rates in excess of 30% per annum from the credit card holders for their failure to make full payments on due date.

In an important ruling, the Supreme Court on December 20 set aside the National Consumer Disputes Redressal Commission (NCDRC)’s earlier judgment that capped the interest charged by banks on late credit card bill paymets at 30 per cent.

The national consumer court had in 2010 restrained banks from charging interest rates in excess of 30% per annum from the credit card holders for their failure to make full payments on due date.

The NCDRC judgment had held that if banks charge rate of interest over 30% towards credit card dues, that would amount to unfair trade practice.

Ruling on the case, the apex court allowed appeals filed by banks including Standard Chartered bank, Citibank, Hong Kong and Shanghai Bank, etc, among others.

[The Economic Times]