While credit cards have made life easier, partial bill payments could get you in serious trouble. A 68-year-old man in Bengaluru could not close his credit card account because he owed 35 paise to the company in a case dating back to 2019.

Ramesh Kumar PV was shocked to learn that the company wouldn’t close his account until he cleared a due of 35 paise and a maintenance fee, ET Now reported.

Only when the bank notified him of his dues in September 2021 did he learn about the status of his pending request in 2019. He then paid Rs 595 towards his outstanding dues but the bank insisted that he pay Rs 6,000 more for the pending maintenance charges.

In April 2022, he moved the Consumer Disputes Redressal Commission for relief. The court ruled in his favour and asked the card company to pay Rs 5,000 in penalty and issue a no-due certificate.

It shows that a simple credit card closure case can become a nightmare. After paying the dues, Kumar requested a closer of his account, yet the bank never provided him with a no-due certificate until he approached the court for relief. It also emphasises the importance of getting written confirmation from the lender about credit card closure to avoid surprises.

On April 21, 2022, the Reserve Bank of India (RBI) issued a circular explaining the rules for issuing and closing credit and debit cards. These rules apply to all scheduled banks and non-banking financial companies except payments, state co-operative, and district central co-operative banks.

So, while closing a credit card, remember the RBI rules to avoid needless harassment.

• The card issuer must close the credit card within seven working days of the request received, provided the cardholder clears all dues. Once the credit card is closed, the card issuer must notify the cardholder through SMS, email, etc.

• Cardholders should be able to submit their credit card closure requests through different channels, including a helpline, Interactive Voice Response (IVR), a dedicated link on the website, a dedicated email for this purpose, internet banking, mobile app, etc.

• The card-issuers will not insist cardholders send closure requests through post or any such mode, which may delay receipt.

• If the card issuer does not complete the card closure within seven days, there is a penalty of Rs 500 per day, which is to be paid to the customer until the card is closed, subject to the condition that there is no payment due on the card.

• When the credit card is not used for a year, the card issuer can initiate the process to close the card after intimating the cardholder. If there is no reply from the cardholder within 30 days, the card issuer can close the account, provided no dues are outstanding. This information has to be updated with the Credit Information Company/ies (CICs) within 30 days of closure.

• If a credit balance is available on the credit card, the card issuer will transfer it to the cardholder’s bank account. If the bank account details are unavailable, the card issuer must get the details from the cardholder to transfer the balance.

So, know your rights. Lenders must inform you when the card is closed, but if you are still waiting to receive the closure intimation, ask the lender if there are any more dues. If yes, pay, get the card closed, and take a confirmation in writing.