Axis Bank's Handling of Credit Card Fee Reversal: Potential RBI Guideline Violation?

[noob69]

Is reversal of annual fee considered as payment towards outstanding?

Long time credit card holders can give their views on this. @TechnoFino


I hold a Citi Rewards credit card, now managed by Axis Bank, where an annual fee reversal was credited to my account after the statement was generated. However, Axis did not count this reversal as a payment, marking my account overdue and reporting it to the credit bureau and adding 500+GST as late payment fee. This caused a 70-point drop in my credit score and recorded my first late payment in 5.5 years of credit history.

I contacted the Principal Nodal Officer (PNO) at Axis, but they only reversed the late payment fee. They still refuse to consider the annual fee reversal as a payment, so they’re unwilling to correctly report to the credit bureaus.

Axis’s response:

“Reversal of financial charges will not be considered as payment and will be adjusted for fresh transactions on the credit card account. Since this reversal cannot be considered as payment, please ensure the total amount due is paid according to your monthly statement to avoid additional charges.”

RBI guidelines:

Paragraph 10(g) of the RBI's Master Direction – Credit Card and Debit Card – Issuance and Conduct Directions, 2022 states: "Any credit amount arising out of refund/failed/reversed transactions or similar transactions before the due date of payment for which payment has not been made by the cardholder, shall be immediately adjusted against the ‘payment due’ and notified to the cardholder."

In my view, Axis is directly violating RBI guidelines, though the RBI doesn’t explicitly address reversals of financial charges. Could Axis be exploiting a grey area here? Should I escalate this to the RBI Banking Ombudsman?

Dealing with the PNOs at Axis has been frustrating; they seem unable to understand even basic English sentences. God bless Axis Bank!

 

[saurabhduasd]

Escalate to rbi ombudsman website, else keep banging on axis

Anyways if late fee is reversed what else axis can do

 

[Swastik]

Take it up with RBI Ombudsman, loss of cibil score and tarnishing of credit history is unacceptable

 

[theflash]

Take it up with RBI Ombudsman, loss of cibil score and tarnishing of credit history is unacceptable

It took 6M for me for similar kind of issue where a late payment was reported due by Axis Bank when it was their fault.

 

[noob69]

Escalate to rbi ombudsman website, else keep banging on axis

Anyways if late fee is reversed what else axis can do

Reversal is the last thing I am concerned about.

Important thing is that I do not want any missed payment in my credit history. Also the score has dropped significantly low.

 

[noob69]

It took 6M for me for similar kind of issue where a late payment was reported due by Axis Bank when it was their fault.

What was their fault?

 

[noob69]

Take it up with RBI Ombudsman, loss of cibil score and tarnishing of credit history is unacceptable

Yes that's the plan. Will also ask for compensation.

But wanted to know if they are really violating RBI guidelines?

 

[amitr29]

Is reversal of annual fee considered as payment towards outstanding?

Long time credit card holders can give their views on this. @TechnoFino


I hold a Citi Rewards credit card, now managed by Axis Bank, where an annual fee reversal was credited to my account after the statement was generated. However, Axis did not count this reversal as a payment, marking my account overdue and reporting it to the credit bureau and adding 500+GST as late payment fee. This caused a 70-point drop in my credit score and recorded my first late payment in 5.5 years of credit history.

I contacted the Principal Nodal Officer (PNO) at Axis, but they only reversed the late payment fee. They still refuse to consider the annual fee reversal as a payment, so they’re unwilling to correctly report to the credit bureaus.

Axis’s response:


RBI guidelines:


In my view, Axis is directly violating RBI guidelines, though the RBI doesn’t explicitly address reversals of financial charges. Could Axis be exploiting a grey area here? Should I escalate this to the RBI Banking Ombudsman?

Dealing with the PNOs at Axis has been frustrating; they seem unable to understand even basic English sentences. God bless Axis Bank!

70 Points drop for a small late credit card payment is unheard of and not possible. There must be something else to it. I suggest you see full report or write to Cibil

 

[theflash]

What was their fault?

I've mentioned it here.

Post in thread 'Axis Reopens Closed Card After Months Claiming Priority Pass Usage. HEADACHE'

Apr 13, 2024

Please read second paragraph. If the lounge is located in international terminal within India, it is considered international lounge

I encountered a similar incident

So, the problem/issue started with

30/06/2022: I raised a request at PNO Desk to convert my Axis MYZONE credit card XXXX XXXX Lifetime Free.

05/07/2022: I received their response from them –

“We acknowledge the receipt of your mail dated 30-06-2022 addressed to the Principal Nodal Office regarding the concern that you want to convert the...

• theflash