SC stays order of limiting credit card interest rate

New Delhi: Bad news for credit card holders. The Supreme Court has stayed the order limiting the interest charged on credit cards to 30 per cent.

Last year, National Consumer Disputes Redressal Commission had directed banks from charging interest over the rate of 30 per cent per annum to credit card holders who fail to make full payment on the due date.

SC stay order means that banks can now charge more than 30 per cent per annum on credit card interest.

The decision by a bench headed by Justice B N Agrawal would allow credit card issuers to charge any interest rate they deem proper till the final verdict is pronounced.

HSBC, American Express, Citibank and Standard Chartered Bank had move the SC challenging the consumer forum order.

These MNC banks often charge more than 40 per cent interest on credit cards