BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION AT BANGALORE (URBAN)

DATED 23^rdDAY OF OCTOBER 2024

ORDER

SMT. K. ANITA SHIVKUMAR, MEMBER

1. Complainant filed this complaint U/S 35 of Consumer Protection Act 2019, seeking direction against OP.

1. Pass decree and judgement directing the Ops pay direct the respondents to duly look into this matter with foremost importance to take necessary steps apology, cancel overdue amount Rs.36,311.19/- and also resolve all the issues at earliest for causing enormous harm and injury besides you will have to compensate of aforesaid amount with penal charges as applicable to the tune with 18% interest per annum total as stated above from the date of filing of this complaint to until the disposal of the case.
2. Direct the respondents to provide Rs.1,00,000/- as a compensation to the complainant for the deficiency in service and mental harassment and agony.
3. Compensation for mental pain and agony for the harassment, discomfort mental agony Rs.5,00,000/-.
4. Because of the delinquent act committed by the opposite party, my CIBIL rating has impacted very badly. Due to which am unable to pursue further loan financing and paying higher interest rates on my existing financings.  Henceforth, my CIBIL score must be repositioned to the same as for no fault/wrong from myside.  Therefore, seeking the direction from the Honourable court to order the opposite party pay the compensation and damage for the deficiency in service a compensation of minimum of Rs.10,00,000/-.
5. Direct the opposite parties to pay the costs of the proceedings of Rs.25,000/- grant any others reliefs deems fit by Hon’ble court in interest.
6. Direct the opposite parties to pay compensation of Rs.5,00,000/- for not being considerate to act on timely manner despite of expressing my poor health condition and for making its female customer suffer and get humiliated from its collection department representatives with their inappropriate conduct and rigorous payment collection follow up process through continuous phone calls, whats app messages.

2. Brief facts of this case are as follows:-

Complainant stated in her complaint that she being a law abiding citizen of India having credit card of OP bank and is using a service for more than 4 and half years in card bearing No.xxxx5509. Presently the dispute arised with regard to the amount of Rs.36,311/- which is demanding by OP towards overdue amount. She stated in the complaint that, being very loyal in making payment promptly every month on or before the due date without any miss and there is not instance where the payment was missed for a singly period in approximately 50 months. The issue has got prolonged for very long time since January 2022 to till date. It is due to complainant and her family had no personal time, mental peace and wellbeing, health and financial credibility as CIBIL score has impacted badly.

3. Complainant stated that somewhere in December 2021, there was a zero EMI option enable for one of the application payments which had applied through policy bazaar, the same was cancelled within months time. However through OP bank, opened a new account to track this and started levying interest and late payment charges by January 2022 onwards. This brought to the notice of complainant, she expressed her willingness to close the credit card as a service and management of collection was very poor.

4. Complainant further stated that during conversation with customer care support team on 26.02.2022, customer care support team agreed to close the EMI account and waive off the charges completely which was approximately Rs.5,771/-. This reversal were supposed to reflect in the statement of accounts on March 2022, but did not reflected. The overall due amount as on 26.02.2022 to clear the balance including the transfer from EMI account was only Rs.70,702/-, including Rs.16,000/- card usage value, but this value changed in the statement and became Rs.79,702/-, which shows the reversal did not take place in the statement as agreed, complainant hassent an E-mail to the bank highlighting these issues again and also mentioned over the mail that payment will be on hold until the issue is resolved completely (E-mail dated 15.03.2022). In March 2022 statement, bank team again failed to process the reversal and additionally they have put pre-closure charges of Rs.2,299/- which was not confirmed any time during 26.02.2022 conversation.

5. With regard to that complainant dropped E-mails on 04.05.2022, 15.06.2022 and 21.06.2022. Complainant made several phone calls to customer support of OP to seek justice by way of seeing reversal of agreed charges by OP, but nowhere OP team found helpful and continued to charge the late payment and interest charges every month till date and payment was kept on hold as the agreed reversal charges were not done fully, despite multiple follow ups over phone and E-mails and OP failed to resolve the issue on time expected by customer to make the full payment shown as due on the statement & continue to charge on the cumulative balances.

6.  Complainant further stated that, she requested for card closure in the month of February 2022, OP did not close. No one after 26.02.2022 called complainant from customer care, which complainant was supposed pay as a final clearing amount and when the complainant was requesting to take action at the earliest, OP used to say since the minimum amount payment is taken care in the statement by way of auto reversal and told not to worry about the CIBIL. Therefore complainant alleged that even after the payment of credit card bills till February 2022 without miss, OP had hold the payment from March 2022 to September 2022. In October 2022, complainant made an attempt to visit the branch office at M.G. Road, Bangalore with a hopes that OP would provide some solution but OP did not. Complainant further stated that she cleared principal amount of Rs.50,000/- on 8^th October and Rs.17,561/- on 18^th October as the interest and late fee charges. As the said interest and late fee charges were coming so high, OP were denied to reverse the charges. As per the complainant’s statement, she has paid interest and the other charges with her own interest and booked legitimate and the remaining balance are all related to charges because of team of  customer care support, escalation team and banks negligence.

7. Even after escalation made for the particular issue several times, she did not receive any reply from OP. No resolution, proper explanation and no action initiated against the grievance of complainant. Therefore complainant alleged that, it is a clearly a deficiency of service and Unfair Trade Practice practiced by OP bank without any solution since complainant has raised a complaint before them and OP keep on raising the interest and the other charges on day to day basis. Complainant caused legal notice on 23.12.2022, OP did not reply to the complainant. Hence, she approached this commission for the relief she sought as referred above.

8. OP appeared through its counsel, filed version with 4 copies of documents. After the filing of version, complainant filed an application for the amendment of prayer column. In spite of sufficient opportunities, OP did not file their objection to amendment. Hence, IA was disposed off by allowing the complainant to amend the prayer column as she sought. Subsequently complainant has filed amended complaint. OP did not file any additional version, even after sufficient time given to OP.

9. OP filed version and denied the averments made in the complaint. OP taken contention that, complaint is not maintainable before this commission since OP has not caused any deficiency in service, and complainant has filed this complaint with malafide intention of getting the unjust enrichment at the cost of OP. OP admitted that complainant has taken credit card and she is using service of OP for more than 4 and half years with card number ending with No.xxxx5509. OP stated that the statement for the month of December 2021, pertains to complainant clearly shows that she was due to pay an amount of Rs.20,392/- which is to be paid on or before 16.02.2022. Further as per the statement for the month of January 2022,total amount payable by complainant was Rs.1,37,267/- is to be payable on or before 17.01.2022. OP submitted that the complainant has not provided the details of transaction through policy bazaar. OP submitted that has duly replied to the E-mails of the complainant dated 08.10.2022 and 13.10.2022 and also replied to complaint filed before the banking ombudsman vide reference No.N202223023233959 which the complainant has suppressed before this commission. Complainant is well aware of the fact that nonpayment of entire outstanding due amount shall attract charges, penal interest etc., despite complainant intentionally not made the payment, resulting in permanent blockage of her credit card. Despite bringing it to the notice of the complainant, regarding inability to reverse the charges levied, complainant made false allegation against OP. OP contended that, as per the statement, for the month of September 2022, complainant was due to pay Rs.88,025/-, on or before 25.09.2022, but complainant failed to pay the said amount and she herself admitted that the payment of principal amount Rs.50,000/-and on 8^th October and Rs.17,561/- only during October 2022. As per the statement of October 2022 the complainant was still liable to pay Rs.23,208/-, on or before 24.10.2022. Non-payment of the due amount payable by the complainant within the period, clearly evidence the fact that she has intentionally evaded the due amount, as such OP has levied late charges as per the agreed conditions. Therefore OP has forced to block the credit card permanently when the complainant is due to pay an amount of Rs.30,478/-. Hence OP stated that, there is not deficiency of service on the part of OP bank, since OP has fully co-operated and carried out the investigation within its power and the same has been responded to complainant, hence prayed to dismiss the complaint with cost.

10. At this stage, complainant adduced her evidence by filing affidavit with certificate U/S 65B of I.E. Act. In support to the affidavit evidence, complainant has produced 13 documents which are marked as Ex.P.1 to Ex.P.13. One Suresh Gurala, working as manager is authorize to lead evidence on behalf of OP.Accordingly he lead evidence by filing affidavit. In support of the affidavit evidence OP filed 5 documents including certificate U/S 65B of I.E. Act which are marked Ex.R.1 to Ex.R.5. Both the parties filed written arguments and submitted their arguments and perused the materials on record.

11.On the basis of above pleadings for our consideration are as follows:-

i) Whether the complainant proves the deficiency of service on the part of OP?

ii) Whether complainant is entitled for the relief?

iii) What order?

12.  Our answers to the above points are as follows:-

Point No.1:-Affirmative.

Point No.2:-Partly Affirmative.

Point No.3:- As per the final order.

REASONS

13. Point No.1&2:-These points are inter-connected to each other and for the sake of convenience, to avoid repetition of facts, these points are taken up together for common discussion.

14. It is admitted that complainant having a primary credit card was ending with #5509, however the bank opened a secondary credit card ending with #4535 to collect interests and track the EMI payments for one of the insurance application payments processed through policy bazaar as an interest free EMI for her mother’s insurance application with Niva Bupa Company in January 2022. But the insurance payment was transferred back to the credit card ending with #5509 by Niva Bupa Insurance Company within the same month. OP company continues to generate EMI statements under the card ending with #4535 and started tracking the interests and EMI payments. When the complainant received the threatening calls and What’sapp messages for the payment follow ups in February 2022 to make the payment that was nearly 50 times higher the card due amount, she worried and calls up credit card customer care team to resolve this issue. On 26.02.2022 they agreed to close the EMI’s with all charges that has come so far where to be reversed out in their conversation. It’s about Rs.5,771/-. The accounts statements reveals that the complainant has paid on time whatever the purchases and the balance payment due in the credit card to OP.

15.During the conversations with the bank officials on 26/02/2022 they agreed that to close the EMI account and gave all the charges completely which was approximately Rs.5,771/-, reversal where supposed to reflect on March 2022 statement, which is not reflected. The overall due amount on 26^th February clear the balance including transfer from EMI account was only Rs.70,702/- but this value changed in the statement and become Rs.79,702/- is the agreed reversal did not taken place in the statement, hence complainant has send an email on 15/03/2022 which is at Ex.7A.she stated mainly to resolve 4 issues in the said Email.

16. Issue No.1:Though she continuously reaching out to customer care team to resolve ongoing EMI account issue, account must be closed as the policy purchase has been denied. One of the coordinator of the customer care discussed about this query to put 2 of her account into closure status and release the waiver for the earlier charges.

Issue No.2: the statement dated 24 February is, does not show the payment released by her twice in February.

Issue No.3: Until the above issues are resolved, holding the due payment.

Issue No.4: she requested for not to call or send messages with regard to the payment follow-ups from 3^rd party collection team. She elaborately raised complaint before OP bank to resolve these issues at the earliest and also requested to reverse back her credit card closure charges, interest levied and late charges reversal. OP did not take any action to resolve her grievance even after several follow-ups and visits to the bank. Officials of the bank has not encouraged her to narrate her grievance in her personal visit and even OP bank officials put any effort to clarify her queries as she is their bonafide customer.

17. After perusal of the bank statement and the Email ommunication between OP and complainant. OP bank has not taken to solve her problem instead they have made their own report about how many times the complainant has called and how many times she raised the complaint before this bank. With no other option,subsequently complainant has approached banking ombudsman when the bank officials has not resolve her problems. Per contra OP bank has sent Whatsapp messages which humiliated and embarrassed the complainant.Even after raising complaint before them,they keep onsending messages and also generated the bill with late interest, overdue charges and pre closure charges as well.

18. In the month of February 2022 itself complainant has requested OP to close the credit card account both ending with NO.5509 and 4535. OP bank has submitted their objections before Ombudsman on 28/11/2022, which is at Ex.R1 taking their own contention of settling the matter with the consent of the complainant. On 29/11/2022 OP stated in the objection before ombudsman they stated with the outstanding amount of Rs.25,625/- is due with a card ending No.5509.

19. Though the complainant wants to close the account and credit card, OP kept on sendingWhat’sapp messages for paying minimum amount of Rs.2,000/- to avoid NPA,  which are at Ex.3A. In Ex.3.4 complainant asked OP that the reason for bank people are havingonly interest to collect minimum amount when she wants to cancel / close her card itself by paying the entire due amount, after corrections. This delay in resolving the matter and negligence on the part of the OP, made complainant in hardship and mental agony and also caused financial cause humiliation and affected more to the CIBIL score.

20. The E-mail communication from complainant dated 29 September 2022, she clearly stated that she has paid Rs.50,000/- today and expected to reverse charges worth of Rs.16,119/- as her complaint is already raised before his OP bank. She further stated that she will clear balance amount of Rs.21,906/- and to close the credit card accounts which she insisted from the date of issue raised in the month of February and March 2022. OP acknowledged the E-mail but not mentioned anything about the amount remained as an outstanding in the complainants account and also not stated anything about the complaint raised on 15 March 2022 with 4 issues. Here we can observe that the complainant grievance since beginning remains the same till now. Even she has visited standard chartered bank on 13^th October personally to get help and facilitation from OP bank to resolve the issue. OP bank did not take any interest even she approached bank personally. As on 25/11/2022 in the E-mail of OP stated that the total outstanding in the card ending 5509 is Rs.25,459.57/- since then OP has only stated the amount of complainant to pay back, but not at all taken any contention or stand to resolve the issues of complainant. As she requested, they have reversed the overdue charges,preclosure charges and the delay interest twice or thrice but later several times she requested of the delay charges and preclosure charges even she requested to foreclose the account by paying balance amount. OP bank did notdisclose the entire amount what is outstanding amount after reversal of the excess amount from her side to close the account. The act of OP is not fair and just in connection to customers grievances since OPs objectives is to provide or facilitate assistance whenever the customers need their help. As they admitted that complainant is having credit card since 4 to 5 years without any grievance, she is bonafide customer followed their rules and conditions of a OP bank.When shestrucked with some problem. She raised complaint and requested for his resolution. OP bank many times reversed the amount but she requested for reversal of Rs.36,311/- which is showcased as overdue of credit card No. ending with 5509 in March 2023 statement. This amount purely relates to various charges levied by bank in the complainant credit card statement throughout from January 2022 to March 2023 which remainsunreversed by OP bank due to their inappropriate and negligent behavior. OP nowhere mentiond the same. Complainant submitted detailed written arguments with a levied charges month wise on her card. All together from January 2022 to March 2023 OP bank livid Rs.54,806.93/- towards the delay charges, delay interest out of it, she submitted table NO.2 as bank charges reversal from April 2022 to December 2022 reversed Rs.17,892/- then it clearly exhibits OP bank is still has to reverse the amount to the complainant.

21. OP bank is functioned and bound under the guidelines of RBI and their objective is to run the institution with satisfaction of the customers. Bank has to come forward to satisfy the bonafide customers of their bank specially on the occasion of they have disputes or grievances against bank transactions.Since February 2022 the complainant kept on raising complaints OP bank did not take any action or assist her to close the account as she requested by collecting outstanding charges from her in the month of February 2022. Complainant approached this commission for the redressal of her grievance when she fails to get remedy at the stage of preliminary complaint before the bank and also she approached ombudsmen to get remedy.It is unfair that OP bank has to resolve at their end, at the initial stage of the complaint but dragged till she approaches this commission to get remedy against them. When the bank has imposing the charges on credit card or any transaction with the bank on day to day basis, who is responsible for the delay caused in solving the grievance of the complainant,taken almost two and half years. Till then OP bank not stopped sending the What’s app messages and E-mails without any solution for her complaint and generated the bill every month, obviously caused mental agony to the complainant. Each and every person of the society will utilize the service of the bank one or the other way, banking institutions must be very careful and diligent in their duty to serve the people who approaches them.Unnecessarily the complainant has been dragged to approach this commission for the remedy and also made her to suffer financially and mentally. If they have solved at their end, she could pay little amount at her capacity and close the account as she needed. Therefore, in our considered view, OP has caused deficiency of service, it directly amounts to mental agony, hardship and inconvenience to answer to the OP bank of the time when she received What’s app messages and E-mails from their side. OPs have to compensate the same by paying compensation to the complainant. OPs are also liable to reversal of overdue amount Rs.36,311/- at the earliest and the complainant is not entitled to pay the whatever the charges levied on complainants account after filing this complaint before this commission.The delay costin closing her account since March 2022 is only due to the negligence and dereliction duty on the part of OP bank. Hence they are liable to reverse the amount of Rs.36,311/-. OP caused deficiency of service and caused mental agony, humiliation, embarrassment and loss of time of the complainant, liable to pay compensation of Rs.30,000/- and Rs.15,000/- towards cost of litigation. For no reason complainant is forced to approach this commission for the remedy which is supposed to be solved at the initial stage of the banking system. On the above reasons we answer point No.1 in affirmative, point No.2 partly affirmative.

22. Point No.3: In view of the discussion referred above, we proceed to pass the following:-

:ORDER:

1. Complaint filed under section 35 of the Consumer Protection Act 2019, is allowed in part.
2. OPs are liable to reverse Rs.36,311/- to the complainant’s savings account,  directed to close the credit card account of complainant by collecting the amount due in the month of February 2022 only and waive of the charges after February 2022.
3. OP shall pay Rs.30,000/- for the deficiency of service and Rs.15,000/- towards cost of litigation within 30 days from the date of order, failing which OP shall pay interest at the rate of 10% p.aon above Award amount mentioned in NO.2 &3 from the date of complaint filed before this commission  till realization.
4. Furnish the copy of this order and return the extra pleadings and documents to the parties.

(Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Open Commission on this 23^rdday of OCTOBER 2024)

Documents produced by the Complainant-P.W.1 are as follows:

Documents produced by the representative of opposite party – R.W.1;