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Service charges on lost credit card

Location/place: Gandhidham- Kutch

Name of company/service: HDFC bank

I lost my HDFC credit card on 21/09/2010 and immediately reported the same on phone.

The have charged me service charges, late fees etc in all amounting to 300% over the due amount.

Are the banks allowed to recover such high interest under various heads.

I am ready for settlement on legal and logical interest charges.

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