Complaints filed on: 12-11-2020

                                                      Disposed on: 26-08-2022

BEFORE THE DISTRICT CONSUMER DISPUTES

REDRESSAL COMMISSION, TUMAKURU

DATED THIS THE 26^th DAY OF AUGUST, 2022

PRESENT

SMT.G.T.VIJAYALAKSHMI, B.Com, L.L.M, PRESIDENT

SRI.KUMARA.N, B.Sc., L.L.B, MEMBER

SMT.NIVEDITA RAVISH, B.A., L.L.B, LADY MEMBER

CC.No.71/2020

Mr. Veerangappa D M

S/o Manjunath D V

A/a 32 years, Dasarahalli,

Koratagere T,

Tumkur District-572129.

……….Complainant

(In person)

V/s

Senapathi Bapat Marg,

Lower Parel Mumbai-400 013

Maharastra India.

Survey No.7/1 Katha No.418/1,

Near Kudalahalli gate, Bemi Layout,

Brooke Fields Main Road,

ITPL Road, Bangalore-560 066

Karnataka, India.

Swarna Mahal,

BH Road, Opposite Junior College,

Tumkur-572 102, Karnataka.

(By Sri. T.H.Lokesh – Adv.,)

                                                          :O R D  E R :

SMT.NIVEDITA RAVISH -  LADY MEMBER

This is the complaint filed by the complainant under section 35 of consumer protection act 2019 against the opposite parties Nos.1 to 3 (Hereinafter called as “OP/Bank) to direct the ops to pay compensation of Rs one crore for deficiency of service of the Opposite Parties and future loans assurance from HDFC Bank and also requesting to recommend concerned department to cancel HDFC banking license.

2.       It is the case of the complainant that the complainant is the customer in the OP bank since 9 years. The Complainant availed personal loan and credit card from the OP/bank.  Due date for payment of personal loan and credit card is 7^th day of every month. It is further submitted that the complainant has availed moratorium on his personal loan and credit card from March 2020 to August 2020 as announced by the Government.  But OP bank has hold the account of to recover the due regarding credit card payment on 2/9/2020, before due date and ops have charged Rs 23,300/- interest from March 2020 to August 2020 for 62000 credit usages it's almost 40% of credit usages.  On 2nd of September 2020,the complainant has maintained his account with balance of Rs 24,000/-. Even bank has right to debit complainant’s balance through standing instruction (SI), but they have not debited, ops have hold the complainant’s account

2(a)   The complainant further submitted that he has requested to activate his account with collection department of the OP/bank, the OPs have told to the complaint to make payment Rs 9300/-within a to working days for activation of the account of complainant. Complement has paid rupees 9400 on 3rd September 2020. But op bank have not responded. The complaint has not made payment to his bike service on 2nd September due to hold in  his bank account and  his EMI of his Tata housing loan also bounced. Op bank has sent legal notice on first week of September 2020.Op bank has hold the account of the complainant even there was a clear instructions by RBI as don't pressure for payments upto September 28 and  to don't consider any loan account as a NPA from March 2020 onwards.  Hence this complaint.

3.       After issuing notice by this Commission, Op/Bank has appeared through their common counsel and filed their version. Ops have admitted that the complainant has the customer of op bank and ops have denied the all allegation made by the complainant as false. Further ops have submitted that, they have issued personal loan and credit card to the complainant as per the requisition of the complainant and the ECS got bounced 13 number of times and further submitted that the complainant has availed the moratorium for his personal loan from March-2020 to August-2020 and complainant has not availed moratorium for the month of March 2020 to August 2020 for credit card payment. The complainant has availed moratorium for credit card payment from 2/4/2020 to 31/7/2020.The ops have admitted that the due date of payment on credit card usage is 7^th day of every month and after completion of moratorium period on 31/7/2020, the complainant has not made minimum payment on credit card on or before 7/8/2020.   Hence op bank has hold the account of the complainant after issuing the lien notice to the complainant on 1/9/2020 and they have exercised the "Bankers lien and right of setoff " .It is further submitted by op that, they have charged the interest as per Clause under CMA on interest and further submitted that the complainant has filed this complaint to harass the ops and prayed for dismissal of the complainant with exemplary cost.

4.       The complainant filed affidavit to lead his evidence with 6 documents which are marked as Ex P1 to Ex P6. One Sri B. Niranjan manager of 2nd op has filed his affidavit evidence on behalf of ops and filed 6 documents which are marked as Ex R1to Ex R6.

5.       We heard the arguments of both sides and the points would arise for determination as follows.

1. Whether the complainant proves deficiency in service on the part of OP/Bank?

2. Is complainant is entitled to the relief sought for?

6. .       Our findings on the aforesaid points are as under:

Point No.1: In the Negative

Point No.2: As per final order for the below

:R E A S O N S:

Point Nos.(1) and (2):

7.       It is admitted by the OP/bank that the complainant is the customer of OP/bank, he has availed personal loan and credit card by the OP/bank. The complainant has argued that RBI has given moratorium on personal loan and credit card payment from March 2020 to August 2020.   OP/bank has admitted that the complainant has opted moratorium on personal loan from March 2020 to August and complainant has opted moratorium on credit card payment only from 2/4/2020 to 31/7/2020. The complainant has not produced any documents to show that he has opted moratorium upto August 2020 for credit card payment.

8.       The complainant argued that the OP/bank has charged Rs.23,000 interest for Rs.62,000/- credit usage, which is almost 40% of credit usage, which is illegal.  In contrary, the complainant has not disclosed about at what percent of interest he has agreed to pay the credit card usage.  In the same time OP/Bank has produced the Ex.R4/Card Member Agreement, which is reflecting the clause about interest on credit card payment, i,e.  

(1).  “Unless the interest free period applies as set out below, HDFC bank will levy an interest on any new purchase (and any related debited charge) from the day on which the purchase (and any related debited charge is transacted on the credit account.  The interest free period for a purchase (and any related debited charge) in any statement period will apply if the outstanding balance on the card account for the previous statement period (if any) is paid in full by its due date.  If the outstanding balance on the card account is not paid in full by its due date, finance charge will be levied on any new purchase (and any related debited charge) from the day on which purchase (and any related debited charge) is transacted on the card account and on the outstanding account balance on the cared account from the first day of the last statement period. F HDFC bank will charge interest on a cash advance from the day on which the cash advance is transacted on the card account till the date of repayment of cash advance (including cash interest accrued thereof) in full.  HDFC Bank will ordinarily levy interest on the purchase balance outstanding on the card account on a daily basis by applying its current daily percentage rate to the amount of the purchaser balance outstanding at the end of each day.  HDFC Bank will levy a finance charge on cash advance balances on a daily basis by applying its current daily percentage rate to the amount of the cash advance balance at the end of each day.  The interest as above, will continue to be payable after termination of this agreement or closure of the card account until the card balance is cleared in full.  HDFC Bank may at any time, under intimation to the cardmember, vary the interest to take into account prevailing interest rates, market forces and credit and business risks”.

9.       On perusal of Ex.P2 and its enclosures, Ex.R3 and its enclosures, those exhibits reveals as follows:-

The credit card statement of December which was generated on 18.01.2020 clearly showing that complainant has due of Rs.59,518/-.  It is showing that the complainant has dues from the period when RBI has not declared the moratorium period.  Ex.P2 and its enclosures and Ex.R3 and its enclosures are also reflecting the transaction description, date and amount of purchase of the complaint.  Hence, by making non-payment, late payment fees levied and accumulated to principal amount, as per terms and conditions of the card holder agreement, the OP/Bank is neither deficient in rendering service nor indulged in unfair trade practice.

10.     OP/Bank has submitted that as on the statement dated:18.08.2020 for credit card was Rs.81,066/- and the lien notice was issued to the complainant on 01.09.2020 against outstanding of Rs.85,334.07 in respect to the card account and an amount of Rs.24,724/- was set-off on 16.09.2020.  The Ex.P2 and its enclosures and R3 and its enclosures, Ex.P4 and Ex.R5 establish this argument of OP/Bank.  

11.     On perusal of statements of credit card account of the complainant we have concluded that the complainant has used the credit card with over limit and dues were pending.  As per interest clause of ExR4 agreement credit card member, we have not found any deficiency in charging interest on due payment from date of particular purchasing. The RBI has given guidelines to pay the loans and credit card payments with interest after moratorium period.   It is clearly stated in the Para (i) (2) of RBI notification RBI/2019-20/186 dated: March 27, 2020, that “Interest shall continue to accrue on the portion of the loans during the moratorium period”

12.     On perusal of statements of credit card of the complainant he has due of Rs.85,334.07 up-to 01/9/2020. Hence the complainant has liable to pay interest as he agreed when he was took the credit card from op bank RBI has not given any guidelines to waive up the interest which are accrued in the moratorium period.   When a bank places an account on hold, it usually does so to protect itself from potential loss, but it also may have the interest of the customer in mind.

13.     Further the complainant has argued that, the ops have hold on his bank account when ops have choice to debit the due amount from his account and due to hold on account the complainant has faced so many financial problems, like the complaint has not paid money for service of his bike on 2/9/2020 and he had not made payment to TATA Housing loan. Due to these situations the complainant has lost his image in his family and society. In contrary ops have submitted that they have used lien and set-off right against the complainant and they have given notice on 1/9/2020 regarding hold on account of the complainant and produced ExR5/Ex.P4 lien notice which is clearly reveals details as

The complainant has called upon to remit the sum outstanding amount into credit card account within 7 days from the date, the complainant receive the lien notice failing which the balance outstanding on 16.09.2020 on complainant’s captioned card account or balance available in complainant’s captioned HDFC bank a/c (whichever lower) shall be debited to complainant’s captioned HDFC bank account vide the “cross default” clause of the card member agreement.

  ExR4/agreement of card member produced by the OP/Bank reflects the lien  and set-off right as

“It is agreed that the Bank at any time and without notice, will have a lien and right of set-off on all monies belonging to the card member and / or Add on Card member standing to their credit in any account whatsoever with the Bank or in the possession or custody of the Bank.  If upon demand by the Bank, the balance outstanding on the card account is not repaid within the prescribed time, such credit balance in any account including fixed deposit accounts and any properties of the cardmember and/ or Add-on Cardmember in the possession or custody of the Bank whether for safe keeping or otherwise, including but not limited to dematerialized shares or other securities of the cardmember and/or Add-on Cardmember, held by the Bank as a Depository participant, may be adjusted towards due under the card account.  In case of any deficit, the deficit amount may be recovered by the Bank from the Cardmember and/or Add-on Cardmember”.

14.     On perusal of the Ex.P4 outstanding balance amount of the credit card usage is Rs.85,334.07.   Complainant has submitted that he had remitted Rs.9,400/- on 03.09.2020 and he had Rs.24,000/- balance in his account.  But the balance of the complainant has not been equal to the outstanding amount as shown in the Ex.P4 and complainant has not produced any document to show that, the collection department of OP/Bank told to remit Rs.9,300/- to the complainant’s account to re-active his account.  As per our discussion OP/Bank has not hold or debited the balance payment in the moratorium period.  The OP/Bank has hold the account of the complainant on 01.09.2020 after the completion of moratorium period and given chance to remit the outstanding amount up-to 16/09/2020.  In a decision reported in 2015(2) CPR 687 (NC) HDFC Bank and others V/s Kesto Naskar, it has been held that “Credit card holders is bound to clear outstanding dues against his credit card account.

15.     Further, the OP/Bank has submitted that complainant availed personal loan vide loan account No.4831335 for an amount of Rs.2,50,000/- with tenure of 40 months for an equated monthly installments of Rs.8,543/-.  The ECS got bounced 13 numbers of times since inception of the loan tenure due to insufficient funds.  Ex.R2 true copy of the statement in respect of personal loan establishes the same and same is not denied or objected by the complainant. 

16.     The Hon’ble National Consumer Disputes Redressal Commission in M/S. Hdfc Bank vs Anish Munjal on 23 January, 2019, it held that “Right of Lien the Bank at any time and without notice will have lien and right to set-off on all monies belonging to the Card member and / or add on Card member standing to their credit in any account / custody of the bank, if upon demand by the bank, the balance amount on the card account is not repaid within the prescribed time.  In view of the lien and right to set-off clause, the OP/Bank bank was entitled to set off the credit card dues at any point of time, without any notice to the complainant”.   The above said decision is applicable to present case on hand.  As a borrower, it is the duty of the complainant to repay the amount with interest which was released as loan by the op bank and it is the duty of the bank to protect the public money and it is the right of the op bank to recover the amount which was released as credit to their customers”.  Hence we have not found any deficiency of service by the OP/bank in the present case. Accordingly we proceed to pass the following:-  

:O R D E R:

The complaint filed by the complainant is dismissed without cost.

Furnish the copy of order to the complainant and opposite parties at free of cost.