Chandigarh

DF-I

CC/6/2021

Rakesh Kumar Rana - Complainant(s)

Versus

Axis Bank Credit Cards - Opp.Party(s)

Gaurav Sharma

15 Jan 2024

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION-I,

U.T. CHANDIGARH

 

                    

Consumer Complaint No.	:	CC/6/2021
Date of Institution	:	1.1.2021
Date of Decision	:	15/1/2024

 

Rakesh Kumar Rana, aged 46 years, son of Late Sh. Khazana Ram, resident of House No. 216, Swaraj Enclave, Sector 126, Tehsil Kharar, District S.A.S. Nagar, Mohali.

Complainant

Versus

 

1. Axis Bank Credit Cards, SCO 350/352, 2^nd floor, Sector 34-A, Chandigarh, 160022 through its Authorized Signatory.
2. Axis Bank Ltd. Manimajra Branch, SCO No. 916, Pocket No. 6, Chandigarh  Kalka Road Chandigarh. 160101 through its Branch Manager.

.....Opposite parties

 

CORAM :	PAWANJIT SINGH	PRESIDENT
	SURJEET KAUR SURESH KUMAR SARDANA	MEMBER MEMBER

                       

ARGUED BY	:	Sh. Gaurav Sharma, Advocate for complainant
	:	Sh. kartik, Advocate for Sh. Sandeep suri, Advocate for OPs.

Per SURESH KUMAR SARDANA, Member

     Briefly stated the complainant   is having credit card  of OP bank and limit whereof is Rs.3,15,000/-  and the same is being used by the complainant for the  last 4-5 years and the bill of the debit card automatically paid from the account of the complainant. In the month of April, 2020 the complainant received a telephonic call from the opposite parties, offering the complainant to convert his transactions of Rs. 50,636, Rs. 16,516 and
Rs.5,986/- total Rs. 73,138/- into six easy equated monthly installments (EMIS) for which complainant has to make extra payment of processing fee and GST as well as interest @ 18% P.A on amount of Rs. 73,138/-. The opposite party also assured the complainant that on the due date of bill i.e. 02.05.2020 the outstanding amount will not be deducted from the bank account of the complainant. The complainant gave his consent to pay the outstanding bill of credit card into six easy equated monthly installments (EMIs) and the same was acknowledged by the opposite party. Accordingly, the complainant had made three different transactions that are Rs.50,636, Rs.16,516 and Rs.5,986/- totaling to Rs.73.138/- which were converted into six easy equated monthly installments (EMIS) for which the opposite parties charged processing fee of Rs.759.54, Rs.250 and Rs.250 totaling to Rs.1259.54. Thus  the complainant has to pay Rs. 73,138 in six equated monthly installments (EMIS) for which the complainant has to pay extra payment of processing fee of Rs.1259.54 and GST as well as interest @ 18% P.A. The copies of letters dated 01.05.2020 issued by the opposite party confirming therein that the complainant had opted for making outstanding bill of credit card into six monthly installments and the said letters also showing Processing fee, Interest rate on the said EMIs are annexed as Annexure C-1 (Colly). However, to the  utter shock of the complainant on 02.05.2020 i.e. billing date of the credit card, the opposite parties deducted outstanding bill of the credit card of Rs.78435.94 from the bank account of the complainant without intimating the complainant and inspite of the fact that the complainant had opted  to pay the outstanding bill into six monthly installments.  On 3.5.2020 when the complainant used his debit card for payment the same was declined on account of insufficient fund balance as Rs.78435.94 was deducted by the OP from the account of the complainant. The complainant took the matter with the OPs but to no avail. Alleging the aforesaid act of Opposite Parties deficiency in service and unfair trade practice on their part, this complaint has been filed.

2. The Opposite Parties in their reply while admitting the factual matrix of the case stated that

 from the document which has been placed on record by the complainant himself, it is evident that though the transactions were for 27 March 2020, and 23 March 2020, admittedly the complainant did not opt for the conversion of the amount which has been spent to the credit card into a loan facility towards EMI, immediately and intentionally the complainant has not placed on record the account statement for the particular period of time. The complainant has admittedly opted for the conversion of the same into repayment in the form of EMI much later and the same has been processed only on 1 May 2020 and on the 3 may 2020. It is the case of complainant that he is only requested for the purposes of change on 30 April 2020. However,  the same was required to be processed and confirmed and as per Annexure C3 the same has been confirmed on 1^st  May 2020,  as is evident from the e-mails which have been placed on record by the complainant himself, even the conversion has taken place on 1^st  May 2020 at approximately 4 PM in the afternoon and by that time the auto debit facility having been already opted for activated by the complainant has already been processed for the purposes of payment. It was for the complainant to have issued appropriate instructions for the purposes of the stoppage of debit of the said amount of the Bill amount which had already accrued to the account, however, the complainant chose not to issue any such instructions. The bank is bound by the instructions issued as per the auto debit facility till such time as instructions are not issued for the purposes of stoppage of the same. In the present case, as has been mentioned, the process is already initiated much prior to the date fixed. It is averred that when the payment is made towards the credit card through a methodology which has been adopted by the card holder, it is not for the bank to question the same but it was further account holder itself to have taken appropriate steps to ensure that the amount is not paid from his account if he has opted for an auto debit facility. Even otherwise the conversion into EMI would show in the next billing cycle, and the auto debit instructions having issued for the payment of the amount of the last billing cycle which admittedly was for the amount which has been deducted from the account, in case the complainant did not wish to pay the same it was for the complainant to have issued appropriate stop payment instructions for the same and the bank cannot unilaterally change the standing instructions which has been given by the complainant. The complainant has not issued any change in or stoppage of auto debit facility for that particular bill amount with already stood raised and the due date for which was admittedly the second of may 2020 to be paid through the auto debit as per the instructions of the complainant. All other allegations made in the complaint has been  denied being wrong.

3. Rejoinder was filed and averments made in the consumer complaint were reiterated.
4. Contesting parties led evidence by way of affidavits and documents.
5. We have heard the learned counsel for the contesting parties and gone through the record of the case.
6. The main grievance of the Complain is that the OPs have failed to convert his three transactions totaling Rs 73,138/- into six EMI's  for which the OPs have Charged Rs. 1259.54P as processing charges.
7. On perusal of Annexure C-1 (colly), which are confirmation Letters from Axis Banks Credit card, addressed to the complainant it is apparent that the request of conversion of the transactions into EMIs have been processed.  Inspite of issue of these letters  the amount of these transactions have been deducted in lump sum by the OPs, due to which the complainant has suffered mental agony and harassment for which Complainant is required to be compensated.
8. In view of above discussion, the present consumer complaint succeeds and the same is accordingly partly allowed. OPs are directed as under:-

1. to pay Rs.20,000/- to the complainant as compensation for causing mental agony and harassment to him;
2. to pay Rs.7000/- to the complainant as costs of litigation.

9.      This order be complied with by the OPs within 45 days from the date of receipt of its certified copy, failing which, they shall make the payment of the amounts mentioned at Sr.No.(i) above, with interest @ 12% per annum from the date of this order, till realization, apart from compliance of direction at Sr.No.(ii) above.
10. Pending miscellaneous application(s), if any, also stands disposed off.
11.      Certified copies of this order be sent to the parties free of charge. The file be consigned.

			sd/- [Pawanjit Singh]
			President
			Sd/-
			[Surjeet Kaur] Member Sd/-
15/1/2024			[Suresh Kumar Sardana]
mp			Member