ORDER

M.B. Shah, President - Various States have enacted laws controlling charging of exorbitant rate of interest by the money-lenders. But, it is apparent that there is no restriction with regard to charging of usurious rate of interest by the Banks or Non-banking financial institutions in their money lending activity. There is also challenge to various unjustified demands such as Processing Fee, etc., and the principle of DAMDUPAT is not made applicable. Hence, complaint is filed before this Commission under the Consumer Protection Act, so as to protect the consumers from unjustified exploitation of their needs.

Consumer Complaint No. 51 of 2007

2. This complaint is filed by Registered Trust, namely, Awaz and consumer organization, viz., Jagrut Nagrik and one Pradeep Kumar Thakur, against the (i) Reserve Bank of India (RBI), (ii) HSBC, (iii) American Express Bank Ltd., (iv) Citibank; and (v) Standard Chartered Bank (Credit Card Division) contending that various commercial banks are indulging in unfair trade practice by charging usurious interest on the loans advanced by the Banks as well as on the amounts payable under credit cards.

It is pointed out that:

(i) on credit cards, the ba