CDCRF Slapped SCB

The Coimbatore District Consumer Disputes Redressal Forum (CDCRF) has slapped a fine on Standard Chartered Bank for deficiency in service causing mental agony to one of its credit card holders. Petitioner, G. Satyamurty filed a complaint before the forum citing the Standard Chartered Bank as a respondent. He had stated that as a credit card holder, he had availed a dial a loan of Rs. 31,000 from the bank on his credit card on July 23, 2004. The same was repaid on August 11, 2004 by remitting Rs. 36,000 (i.e., within 20 days). Since the loan was offered and accepted as a credit card holder, the repayment was also made to the credit card account.

Deficiency in service causing mental agony to one of its credit card holders

But the Bank chose to keep the amount to the credit of credit card account without closing the loan account. It took the monthly instalments from the credit balance of the credit card account without the knowledge of the complainant. The fact was about a separate loan account and its so-called number etc was never communicated to the complainant. Only after a few months the complainant came to know about this. Then, the Bank insisted for a letter to close the loan account. In order to avoid further problems the petitioner immediately gave a letter for the same in November 2004. Further, the Bank demanded so-called interest for the fully settled loan amount till that period.

The complainant was forced to pay an excess amount of Rs.575/- on April 30, 2005, which was remitted under protest. The Bank also withdrew the credit card facility to the complainant putting him in the negative profile of defaulters thus affecting his worthiness, despite his prompt repayment of the loan. The Bank contented that the complainant only credited the amount to the credit card account and it was an advance payment and he should have given a letter for closure of the loan account.

The consumer forum led by its president, S.A. Sreeramulu and member P. Mathavi refused to accept the contention of the bank stating that the combined credit limit of the complainant was Rs.83,000 and there was no necessity for the complainant to remit additional Rs.36,000/- to the credit of his credit card account. Hence, the complainant has paid Rs.36,000 only towards the loan account. The Court further held that instead of appreciating and accepting the prompt repayment, the opposite party had chosen to penalise the complainant.

This was nothing but an unethical practice on the part of the bank which was against banking procedures. It was further held that the Standard Chartered bank credit card was suspended unlawfully. Therefore, the act of the Bank amounted only to deficiency in service and unfair trade practice. Thus, the forum directed the bank to extend the Credit Card facility to the complainant, to refund Rs.575/- wrongly collected as overdue and to pay a sum of Rs.20,000/- towards compensation for mental agony and Rs. 1,000 as cost of the litigation within two months from the date of this order, failing which the complaint was at liberty to execute the order u/s 25 and 27 of the Consumer Protection Act 1986.

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