Karachi consumer court fines private bank Rs15,000 over faulty ATM

A consumer protection court in Karachi has imposed a Rs15,000 fine on a private bank over a faulty ATM and the mental distress caused to a customer.

The case was heard by the consumer protection court on a petition filed against the bank regarding malfunctioning ATM services and inconvenience caused to the account holder.

According to the petitioner, the incident took place in 2019 when the ATM failed to dispense cash during a withdrawal attempt. The customer further stated that the machine retained his ATM card during the transaction.

The petitioner, Faraz Faheem Advocate, told the court that the failure to receive both the cash and the card caused embarrassment, professional difficulties and mental distress to him.

The private bank argued that the complaint fell under banking laws and the Payment Systems and Electronic Fund Transfer Act, 2007, claiming that the matter was beyond the jurisdiction of the consumer court.

However, the court remarked that despite the refund, the complainant had still suffered mental agony, professional disruption and loss of time, which warranted compensation.

The court subsequently directed the bank to pay Rs15,000 to the petitioner as damages.