Kerala

Idukki

CC/220/2018

Damodharan - Complainant(s)

Versus

Union Bank of india - Opp.Party(s)

26 Dec 2019

ORDER

 

DATE OF FILING : 13/12/2018

IN THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI

Dated this the 26^th day of December 2019

Present :

SRI. S. GOPAKUMAR PRESIDENT

SMT.ASAMOL P. MEMBER

CC NO.220/2018

Between

Complainant : Raju K. Damodaran,

Kayattiyaanickal Vedu,

West Kodikulam, Thodupuzha.

(By Adv:K.M.Sanu)

And

Opposite Party : The Manager,

Union Bank of India,

Thodupuzha branch, Thoduuzha.

(By Adv: Babichen V.George)

O R D E R

SRI. S. GOPAKUMAR (PRESIDENT)

 

The case of the complainant is that,

 

The complainant is the customer of opposite party, who is the manager of Union Bank of India, Thodupuzha branch. The complainant deposited a huge amount in opposite party bank. At that time the opposite party persuaded the complainant to purchase their credit card. Due to the persuasion of the opposite party, complainant happened to purchase a credit card from the opposite party by paying an amount of Rs.50,000/-. Complainant used this credit card within its limits. While so, when the complainant noticed that the operation of this card is blocked, he approached the opposite party and intimated his willingness to stop the operation of the credit card and the complainant given a written request for that.

 

After a long period of time, in the year 2014, the complainant received a statement from the opposite party showing an amount of Rs.1896/- is outstanding in the credit card account of the complainant. This process of issuing

 

(Cont....2)

 

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statement repeated by the opposite party bank. When the receipt of the statement , the complainant approached opposite party and submitted written requests to close the credit card account and the complainant intimated this matter to the opposite party through E-mail also.

 

While so, on 20/10/2018, the complainant received a statement from the opposite party, directing him to pay Rs.25078/- as total payment due and Rs.778.50/- as surcharges in the credit card account. But the complainant has not availed any such loan from the opposite party.

 

Complainant further averred that, he purchased the credit card by paying Rs.50,000/- and used the card till its limit and closed the account and returned the card to the opposite party. At the time of availing this facility opposite party has not disclosed anything relating to future liability in this credit card scheme. Opposite party is trying to make enrichments in the light of the issuance of this credit card and it is illegal and the act of the opposite party is clear deficiency in service as well as unfair trade practice. Opposite party is liable to disclose that how they arrived this much amount in this account. Opposite party has not issued any notice demanding this amount except the statement of account till date.

 

The demanding of huge amount in relation to the issuance of a credit card is illegal and against this act of the opposite party complainant filed this petition seeking relief such as to direct the opposite party to close the credit card account of the complainant and direct him to pay compensation and cost.

 

Upon notice opposite party entered appearance and filed detailed reply version by admitting the issuance of alleged credit card. Opposite party further contented that at the time of issuance of the credit card, the opposite party has explained all the features of the card to the complainant. It is not true that the complainant availed this facility due to the persuasions of the opposite party and he availed it as his own choice.

 

(Cont....3)

 

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It is absolutely false that the complainant withdraw the amount from his account and purchased the credit card. Opposite party further contented that credit card is one which is issued to persons having high profile and upon the credit worthiness of its holder. A person cannot purchase it on payment. No pre payment is for a credit card.

 

Opposite party further contented that, sending monthly statement to a customer on a live account is a usual practice which was done by the opposite party herein. It is true that the balance grew gradually as the complainant never turned up for any further payment. Moreover it is not known from the available records that the complainant has send E-mail to the opposite party and represented directly to opposite party explaining that he has purchased credit card on payment and credit was closed much earlier, and directed to close the transaction of said card to this opposite party. If the complainant had approached to the opposite party and applied for closure after honoring the credit card account, no further steps would have continued from the part of the opposite party. It is absolutely false that the complainant paid the dues of the credit card and closed said account till date.

 

Opposite party further contented that it is true that the complainant is liable to pay Rs.25078/- and other charges as on 20/10/2018, as per the statement of account of the opposite party. Complainant is an NRI, having long banking experiences in both national and international levels and it is not believable from a moment that he was not aware that availing a credit facility vide a credit card would not cast any liability up on him. The last actual payment made by the complainant was on 30/08/2013, for Rs.51,000/-, when he had a total dues of Rs.56082/-. He has not made any payment to this bank so far except a virtual payment of Rs.8377/- on 19/06/2014. The opposite party is ready to reveal all the transactions of the complainant through its statement of account.

 

Matter being so, the complainant do not have any cause of action as alleged in the complaint and the complaint is liable to be dismissed with cost.

 

(Cont....4)

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Evidence adduced by the complainant and the opposite party by way of documents. The documents such as statement of the opposite party dated 20/10/2014 and 20/10/2018 are marked as ExtP1 and Ext.P2 respectively.

 

The documents such as statement of account dated 19/08/2019, Credit Card policy details, statement of account dated for the period from 19/06/2014 to 30/09/2014, and Cibil Report dated 20/08/2019 are marked as Ext.R1 to Ext.R4 respectively.

 

Heard both sides,

 

The point that arose for consideration is whether there is any deficiency in service from the part of opposite parties, and if so, for what relief the complainant is entitled to ?

 

The Point:- We had heard the counsels for both parties and had gone through the documents. It is an admitted fact that the complainant availed a credit card facility from the opposite party bank. The learned counsel for the opposite party bank argued that even though the complainant purchased a credit card on the compulsion of the opposite party manger for an amount of Rs.50,000/- he had closed the transaction when it reaches its financial limit. In the earlier stage itself he intimated his willingness to stop this facility to the opposite party in writing as well as through E-mail. Even after giving sufficient intimation to the opposite party for closing the credit card facility, the opposite party issued statement of account by showing huge amount as outstanding balance in this account. This act of the opposite party is gross deficiency in their service and unfair trade practice. This act of the opposite party is to be stopped by giving proper direction and further direction is to be given to the opposite party for payment of compensation and cost to the complainant.

 

On the other hand the learned counsel for the opposite party vehemently argued that the version of the complainant cannot be believable to a moment. Because nobody can purchase a credit card on pre payment as averred in the

 

(Cont....5)

 

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complaint. The counsel further argued that the complaint itself is not maintainable, since the statement averred in the complaint are against the Union Bank of India and is not made as a party. Hence the petition is bad for non joinder of necessary party.

 

The learned counsel further argued that the averment of the complainant is false and baseless that his transactions are within the said purchase amount. It is also not known to the opposite party as per records that there was any hindrance for his transaction and he returned the credit card and applied for the closure of credit card account. Credit card is one which is issued to person having high profile. A person cannot purchase the same on payment. No prepayment is required for credit card.

 

 

The learned counsel further argued that if the complainant had approached the opposite party and applied for closure after honouring the credit card account, no further steps would have continued from the part of the opposite party . The statement of account was send to the complainant periodically explaining the amount due by him and explaining the transaction in the account. The actual payment was made by the complainant was on 30/08/2013 for Rs.51,000/-. When he had a total dues of Rs.56,082/-. He has not made any payments to this account so far except a virtual payment of Rs.8377/- on 19/06/2014. But the opposite party bank as a part of its internal accounting arrangement has credited the above said amount to his account from a newly created account in his name in the branch which is also another loan. This arrangement is done for the sake of reducing the volume of Non performing Asset and no actual payment is done by the complainant to his credit card account in this regard. Recovery measures were not initiated since the opposite party bank was of bonafide belief that the complainant is a credit worthy person.

 

The learned counsel further argued that the complainant is an NRI with long banking experience in both national and international levels and it is not

 

(Cont....6)

 

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believable that he was not aware that availing a credit facility vide a credit card would not cast any liability upon him.

 

On perusing the evidences on record it is seen that the opposite party bank issued Ext.P1 and Ext.P2 statements to the complainant in the year 2014 and 2018. Ext.P1 shows an amount of Rs.1,896/- as credit card payment due as on 20^th October 2014, Ext.P2 shows an amount of Rs.25,078/- as credit card payment due along with Rs.778.50/- as charges as on 20/10/2018. It is seen that in between this period no statement is issued to the complainant related to this transaction. Opposite party has not a case that they issued periodical statements between this periods to the complainant.

 

We have gone through the preliminary issue raised by the opposite party relating to the non-joinder of necessary party. On going through the averments in the complaint and contentions of the written version, it is seen that the complainant arrayed the Manager of the Union Bank of India as the opposite party as a representative of the Union Bank of India. Even though the Union Bank of India is not arrayed as an opposite party, it cannot be considered as a non-joinder and it will not affect the maintainability of the complaint. When going through the averments in the complaint, it is very clear that the allegation of the complainant is against the branch office of the concerned bank, not against the person who manages the branch. Hence no question of any non-joinder of necessary party arises, and this issue is found in favour of the complainant.

 

Regarding other issues, we are of the considered view that as contented by the opposite party, that the complainant is an NRI with long banking experiences in both national and international levels and it is not believable that he was not aware that making a credit facility through a credit card would not cast any liability upon him,” is not denied by the complainant. More over it is also considered that no one can purchase a credit card from a bank by prepaying the amount. If a person purchases a credit card by making payment no question of any service charges or interest is arises. The term, 'Credit Card' means, it is a card

 

(Cont....7)

 

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which allows people to buy items without cash. The issuer of the card, transfers money to the seller. The person using the card gets a credit. The customer has a certain amount of time to pay the credit card bill. If the bill is left unpaid for some time, the customer will have to pay interest for the amount that is left unpaid”. If we consider the argument of the complainant that he purchased the card by paying a fixed amount in advance, it is the liability of the complainant itself to prove that such type of credit cards are prevailing in the banking field. Here the complainant has not took any effort to shake the contentions raised by the opposite party. If the complainant purchased the credit card by making advance payment, he can easily prove it through the banking transaction details. In this case complainant miserably failed to produce any document to fortify his version.

 

On the basis of above discussion Forum is of a considered view that the version of the complainant cannot be believable and acceptable, without clear and cogent evidence. Hence complaint dismissed. No order to costs.

 

Pronounced in the Open Forum on this the 26^th day of December, 2019.

 

Sd/-

SRI. S. GOPAKUMAR (PRESIDENT)

Sd/-

SMT. ASAMOL P. (MEMBER)

 

 

 

 

 

 

 

 

 

 

 

(Cont....8)

 

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APPENDIX

 

Depositions :

On the side of the Complainant :

Nil

On the side of the Opposite Party :

Nil

Exhibits :

On the side of the Complainant :

Ext.P1 -Statement of the opposite party dated 20/10/2014

Ext.P2 - Statement of the opposite party dated 20/10/2018

On the side of the Opposite Party :

Ext.R1-The documents such as statement of account dated 19/08/2019

Ext.R2- Credit card policy details

Ext.R3- Statement of account dated for the period from

19/06/2014 to 30/09/2014

Ext.R4- Cibil Report dated 20/08/2019

 

Forwarded by Order,

 

 

SENIOR SUPERINTENDENT