In 2023, I set up autopay in my Lazypay account using my Axis Bank account. Things were smooth until I decided to take advantage of pre-approved offer from ICICI Bank. To make this happen, I transferred all my funds from Axis Bank to ICICI Bank in order to increase transactions, and that's when the trouble began.
I tried to change the autopay setup in Lazypay from Axis Bank to ICICI Bank, but to my surprise, there was no option to do this in the app. After reaching out to Lazypay’s customer support via email, they confirmed that this feature wasn’t available yet but might be included in future updates. Hence once setup you cannot change bank account.
To avoid any ECS (Electronic Clearing System) return charges, I made it a point to pay my Lazypay bills early using my ICICI Bank account. However, even after I made the payments, Lazypay would still send an ECS request to Axis Bank. Since there were no funds in that account, the requests bounced, resulting in charges. Lazypay hit me with a ₹300 penalty each time, and Axis Bank charged me ₹590 for the returned ECS + GST. By the time I realized what was happening, I had been charged three times.
Frustrated, I contacted Lazypay support, asking for a refund since I had already paid my bills before they initiated the ECS requests. Unfortunately, they rudely refused to refund the charges. Fed up with their service, I asked them to close my account immediately. They did so and sent me a No Dues Certificate the same day.
Fast forward a few months, and I was reviewing my CIBIL report when I noticed that my loan account with PayU Finance (Lazypay’s parent company) was still marked as active. Worse yet, it showed a delay of 170 days from the date I received my No Dues Certificate. I quickly wrote to PayU Finance, pointing out this delay and requesting compensation for the error. After several messages, the account was finally closed on July 30th, but only after a total delay of 173 days.
Even after repeatedly asking for compensation, they used to completely ignore my request for compensation.
Frustrated by their lack of response, I filed a complaint with the RBI Ombudsman. Following this, They agreed to pay a compensation only limited to ₹14300.
I DIDN’T ACCEPT AND REPLIED
Following this, I received compensation of ₹14,300 for the (173-30) 143 days of delay (₹100 per day), plus an additional ₹6,000 as a settlement for the inconvenience—although I had initially demanded ₹7,000.
Additional compensation asked was a total of [(300+590)*3]+18%GST charged for ECS bounce + 1200 Cibil subscription bought to share updated CIBIL report from CIBIL website with them + 1650 for the time wasted (I have donated ₹700 to zomato guy to purchase raincoat as he didn’t wear one for delivery + 500 dog food + 201 to a sports club rest 250 is with me as of now will tip delivery people delivering in rain)
This experience serves as a reminder to always keep an eye on your financial accounts, even after you've closed them. Errors can happen, and sometimes, it takes persistence and a willingness to escalate issues to get the resolution you deserve.
Thanks to @TechnoFino for making us aware about our rights and ways to fight against such things.
I tried to change the autopay setup in Lazypay from Axis Bank to ICICI Bank, but to my surprise, there was no option to do this in the app. After reaching out to Lazypay’s customer support via email, they confirmed that this feature wasn’t available yet but might be included in future updates. Hence once setup you cannot change bank account.
To avoid any ECS (Electronic Clearing System) return charges, I made it a point to pay my Lazypay bills early using my ICICI Bank account. However, even after I made the payments, Lazypay would still send an ECS request to Axis Bank. Since there were no funds in that account, the requests bounced, resulting in charges. Lazypay hit me with a ₹300 penalty each time, and Axis Bank charged me ₹590 for the returned ECS + GST. By the time I realized what was happening, I had been charged three times.
Frustrated, I contacted Lazypay support, asking for a refund since I had already paid my bills before they initiated the ECS requests. Unfortunately, they rudely refused to refund the charges. Fed up with their service, I asked them to close my account immediately. They did so and sent me a No Dues Certificate the same day.
Fast forward a few months, and I was reviewing my CIBIL report when I noticed that my loan account with PayU Finance (Lazypay’s parent company) was still marked as active. Worse yet, it showed a delay of 170 days from the date I received my No Dues Certificate. I quickly wrote to PayU Finance, pointing out this delay and requesting compensation for the error. After several messages, the account was finally closed on July 30th, but only after a total delay of 173 days.
Even after repeatedly asking for compensation, they used to completely ignore my request for compensation.
Frustrated by their lack of response, I filed a complaint with the RBI Ombudsman. Following this, They agreed to pay a compensation only limited to ₹14300.
I DIDN’T ACCEPT AND REPLIED
Following this, I received compensation of ₹14,300 for the (173-30) 143 days of delay (₹100 per day), plus an additional ₹6,000 as a settlement for the inconvenience—although I had initially demanded ₹7,000.
Additional compensation asked was a total of [(300+590)*3]+18%GST charged for ECS bounce + 1200 Cibil subscription bought to share updated CIBIL report from CIBIL website with them + 1650 for the time wasted (I have donated ₹700 to zomato guy to purchase raincoat as he didn’t wear one for delivery + 500 dog food + 201 to a sports club rest 250 is with me as of now will tip delivery people delivering in rain)
This experience serves as a reminder to always keep an eye on your financial accounts, even after you've closed them. Errors can happen, and sometimes, it takes persistence and a willingness to escalate issues to get the resolution you deserve.
Thanks to @TechnoFino for making us aware about our rights and ways to fight against such things.
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