Credit card users will get a big shock, 50% interest will be charged on late bill payment, strict order of SC

New Delhi: There is bad news for credit card using customers. From now on, they may have to pay 36-50% interest on late credit card bill payments. The Supreme Court has canceled the 2008 decision of the National Consumer Disputes Redressal Commission regarding late payment charges of credit cards, in which a maximum of 30% interest was fixed as late payment charges of credit cards. After this decision of the Supreme Court, banks will now be able to charge 30 percent to 50 percent interest on late payment fees of credit cards.

what is the whole matter

NCDRC had said in one of its decisions in 2008 that charging 36 to 50% annual interest from credit card users is very high. Calling it a wrong business practice, the limit of interest on late payment fee was fixed at 30%. The Supreme Court has stayed this decision of NCDRC and this has brought relief to the banks. This news is a shock for those customers who delay in paying credit card bills. From now on, banks can charge 36-50 percent interest from such customers as late bill fees. The Supreme Court has issued an order in this regard on December 20 and this decision has been given by the bench led by Justice Bela Trivedi and Justice Satish Chandra Sharma.

Petition to the Supreme Court

A 16 year long case can be seen behind this decision of the Supreme Court. NCDRC had ruled in this matter on July 7, 2008 that no more than 30 percent interest can be charged from 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 applications against this decision and now on September 20, the Supreme Court has given its verdict in favor of the banks. Also read…