Kerala consumer panel orders Federal Bank to pay Rs 1.25 lakh over blocked debit card

A district consumer commission in Kerala ruled that Federal Bank must pay Rs 1.25 lakh to a long-time customer whose international debit card was silently removed from the payment system. The cardholder, traveling with his family from Kuwait to Kochi, was denied lounge entry and could not make purchases because the card displayed as invalid. The bank argued that a Mastercard alert about possible data compromise led to the block and that a replacement card had been dispatched, though the SMS notification failed.

The commission, chaired by President D B Binu with members V Ramachandran and Sreevidhia T N, rejected the bank’s explanation, citing lack of proper notice and inconsistencies in dates. It described the incident as a clear deficiency in service and unfair trade practice, awarding Rs 1 lakh for mental anguish and Rs 25,000 for litigation costs, payable within 45 days with interest for delay.