Himalaya Sharma alleges that HDFC Bank wrongly charged ₹3000 on his lifetime free credit card renewal. Despite non-activation of the new card, fees were applied. Choice4Voice.com investigates the complaint, legal remedies, and consumer rights.
HDFC Bank Complaint: Unfair ₹3000 Charges on Lifetime Free Credit Card by Himalaya Sharma
Complaint Summary
| Details | Information |
|---|---|
| Complainant Name | Himalaya Sharma |
| Not disclosed | |
| Complaint Type | Unfair Credit Card Charges |
| Company/Brand | HDFC Bank |
| Product/Service | Lifetime Free Credit Card |
| Card Status | Expired and Auto-Replaced with New Card (Unactivated) |
| Fee Charged | ₹3000 (Annual/Joining Fee) |
| Issue Description | HDFC Bank charged ₹3000 as fees for a card that was originally lifetime free, despite the new card being unactivated. |
| Company’s Response | Not addressed at the time of publishing |
| Date of Incident | September 2025 |
| Additional Comments | Complainant highlights this as unfair banking practice and has tagged RBI for intervention. |
Full Complaint Details
Himalaya Sharma, a verified LinkedIn professional and financial consultant, raised a complaint against HDFC Bank regarding an unfair charge of nearly ₹3000 on his credit card account.
According to the complainant:
- He has been using an HDFC Bank lifetime free credit card for years without any annual or renewal charges.
- Recently, his existing credit card expired. Without any explicit request, a new replacement card was automatically sent to his address by HDFC Bank.
- The complainant did not activate the new card. Despite this, HDFC Bank levied a ₹3000 charge as an annual fee.
- The complainant views this as a clear violation of the lifetime free card promise.
- He has tagged Reserve Bank of India (RBI) in his LinkedIn post, raising the matter for regulatory scrutiny.
This case underscores the growing consumer frustration with hidden or unjustified credit card charges levied by banks in India.
Consumer Rights & Legal Perspective
Under Indian financial and consumer protection laws, banks cannot levy unauthorized charges or alter contractual terms without explicit consent from customers.
Key Legal Grounds:
- Consumer Protection Act, 2019
- Unjustified charges amount to unfair trade practice and deficiency in service.
- Consumers have the right to seek a refund and compensation for mental harassment.
- RBI Guidelines on Credit Cards (2022)
- RBI mandates that lifetime free cards cannot carry hidden or disguised charges.
- Banks must obtain explicit consent before upgrading, replacing, or converting a card.
- Charges for unactivated cards are illegal under RBI norms.
- Contractual Violation
- A lifetime free card contractually binds the bank to provide the service without annual or renewal fees.
- Any deviation requires customer approval.
How Such Unfair Practices Harm Consumers
- Financial Burden – A sudden ₹3000 charge is a direct monetary loss.
- Trust Deficit – Promises of “Lifetime Free” lose credibility, eroding consumer confidence.
- Psychological Stress – Unjust charges and prolonged disputes cause frustration and harassment.
- Regulatory Gaps – Lack of strict penalties emboldens banks to continue such practices.
Remedies Available to Consumers
If faced with similar situations, consumers can take the following steps:
- Raise a Complaint with HDFC Bank
- File a written grievance through customer care, nodal officer, and appellate authority.
- Demand reversal of charges citing “lifetime free” contract and RBI rules.
- Escalate to the Reserve Bank of India (RBI)
- File a complaint with the RBI Ombudsman under the Integrated Ombudsman Scheme, 2021.
- RBI has powers to penalize banks and direct refunds.
- Approach the Consumer Forum
- File a case under Consumer Protection Act for refund and compensation.
- Consumers can claim damages for mental harassment caused by unfair practices.
- Use Choice4Voice.com Support
- We assist in drafting legal notices, escalating to RBI, and filing consumer complaints to ensure justice.
Broader Issue: Lifetime Free Credit Cards in India
The concept of lifetime free credit cards has often been used by banks as a marketing tool. However, in practice, many customers complain about hidden charges after a few years.
Common Complaints:
- Annual fees suddenly charged after card replacement.
- Hidden processing fees on rewards redemption.
- Unannounced conversion of lifetime free cards into paid variants.
- Auto-upgrades that bring hidden charges.
Why It Happens:
- Aggressive cross-selling targets by banks.
- Poor grievance redressal systems.
- Consumers often unaware of RBI circulars protecting them.
RBI’s Role and Intervention
The complainant has tagged RBI in his post, highlighting the need for regulatory action.
RBI’s Stand:
- In its 2022 notification, RBI strictly prohibited charging fees on lifetime free cards.
- Banks must provide clear written terms at issuance.
- Customers must not be billed for unactivated or unused credit cards.
Failure to comply can result in regulatory penalties, including fines on banks.
How Choice4Voice.com Helps in Such Cases
At Choice4Voice.com, we actively support consumers facing unfair banking practices:
- Publishing complaints to build public pressure.
- Assisting in filing RBI Ombudsman complaints.
- Drafting legal notices for refund and compensation.
- Guiding customers on consumer court procedures.
We ensure that cases like Himalaya Sharma’s are not ignored and banks are held accountable.
Conclusion
The complaint filed by Himalaya Sharma reveals how HDFC Bank’s alleged unfair charges are affecting customers. Despite the card being “lifetime free” and the replacement card not even activated, the bank levied a ₹3000 fee.
Such practices not only violate RBI guidelines but also erode consumer trust in India’s financial system.
Choice4Voice.com urges HDFC Bank to:
- Immediately reverse the charges.
- Issue a written apology to the customer.
- Ensure stricter compliance with RBI regulations to prevent recurrence.
Consumers must remain vigilant, question hidden charges, and escalate matters until resolution.
FAQs on Lifetime Free Credit Cards and Hidden Charges
Q1. What does “lifetime free credit card” mean?
It means the card has no annual or renewal fees for its entire validity period.
Q2. Can banks charge a fee on lifetime free cards?
No, unless you gave explicit consent for an upgrade or conversion.
Q3. What if a bank charges fees for an unactivated card?
Such charges are illegal. Consumers should immediately raise a dispute and approach RBI.
Q4. How do I complain to the RBI Ombudsman?
You can file online through the RBI Complaint Management System (CMS) within one year of the incident.
Q5. Can Choice4Voice.com help in such cases?
Yes, we provide drafting support for RBI and consumer court complaints.
Q6. How long does it take to resolve a complaint with RBI?
Usually 30–90 days, depending on the complexity.
Q7. Can I claim compensation for harassment?
Yes, under the Consumer Protection Act, you can claim compensation for financial and mental harassment.
Q8. Do banks need customer consent before replacing or upgrading cards?
Yes, RBI requires explicit written or digital consent.
Q9. Can banks automatically issue a replacement card?
Only if it is a free replacement without additional charges. Otherwise, it is not permitted.
Q10. What documents should I keep for a complaint?
Keep copies of the original “lifetime free” offer, statements showing charges, and all email/phone communications with the bank.
👉 Original LinkedIn Post: Click Here
Published by Choice4Voice.com – Fighting for Fair Consumer Rights.
