Karachi court slaps Rs15,000 Fine on Bank over faulty ATM that caused ‘Mental Distress’

KARACHI – A Karachi consumer court gave ruling against private bank in case involving malfunctioning ATM, ordering the institution to pay compensation for the mental distress caused to a customer. Consumer Protection Court in Karachi imposed fine of Rs15,000 on the bank after hearing a complaint related to an ATM failure that allegedly led to significant inconvenience and psychological stress for the user. The court also rejected the bank’s objection regarding jurisdiction, affirming its authority to hear the case. Although the court noted that the complainant eventually recovered his money and therefore suffered no direct financial loss, it ruled that compensation was still justified for the mental anguish, frustration, embarrassment, and time wasted due to the incident. The case dates back to 2019, when the complainant stated that an ATM machine retained his bank card and failed to dispense cash during a transaction. He argued that the incident caused him serious difficulties, public embarrassment, and mental pressure at the time. In its verdict, the court ruled that the private bank is liable to compensate the customer for the distress caused, reinforcing that consumer rights extend beyond financial loss to include emotional and psychological harm as well. MCB to pay Rs23.50 million in fine for regulatory breaches