What can I do if my credit card issuer keeps charging interest wrongly after a dispute?

Dispute Process

• Initial Struggles: Axis Bank initially rejected my dispute multiple times but eventually provided a dispute ID in mid-November.
• Service Provided: By the end of November, Airtel agreed to install the connection (possibly influenced by the dispute), so I requested Axis Bank to close the dispute, as the service was finally being provided. I also made an extra payment on my credit card to cover the disputed amount.

Ongoing Issues

• Unexpected Interest Charges: Despite my proactive payments, Axis Bank began charging interest on my statements starting in January. Each time I complained, the charges were reversed immediately, but their emails insisted that fees were due to delayed payment.
• Persistent Errors: This cycle repeated through February and March. Despite prompt payments, the bank continued to apply and then reverse these unjust interest charges, accompanied by template emails blaming me for supposed late payments.

Escalation to RBI Ombudsman

• Filing a Complaint: Frustrated by the ongoing harassment, I filed a formal complaint with the RBI Ombudsman in April 2025.
• Repetitive Responses: Axis Bank’s Principal Nodal Officer (PNO) kept sending copy-paste responses every few days, claiming the fees were justified, while I continued to reply with clear evidence of timely payments, demanding they specify where I had defaulted.

Resolution

• Breakthrough via RBI: After more than three months of back-and-forth emails, I received a call from the RBI Jammu office in early July, where I finally had the opportunity to explain my case.
• Compensation Awarded: Yesterday, RBI informed me that Axis Bank had agreed to pay ₹10,000 as compensation. Upon checking, I found this amount credited to my card account marked as "Written Off."

Related: compensation from Axis Bank after an RBI Ombudsman complaint, the full story.