COMPLAINT FILED ON: 30.10.2009

DISPOSED ON:13.01.2012

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

13^th DAY OF JANUARY-2012

  PRESENT:-  SRI. B.S. REDDY                    PRESIDENT

                      SRI. A. MUNIYAPPA                   MEMBER

COMPLAINT No.2537/2009

O R D E R S

SRI. B.S. REDDY, PRESIDENT

The complainant filed this complaint U/s.12 of the Consumer Protection Act of 1986, seeking direction against the Opposite Party (herein after called as O.P.) to credit sum of Rs.18,782/- debited in his account No.SB.2035 by reversing the interest debited in his S.B account and to award compensation of Rs.50,000/- on the allegation of deficiency in service on the part of OP.

  2. The case of the complainant to be stated in brief is that:

        The complainant has been using OP Bank’s Credit Card since about 20 years. His latest credit card bears No.045436301 3729 1001. When the complainant received FTV for the month of December 2008, he noticed that there was a demand for payment of Rs.27,081/- being the air tickets booked through internet.

3. The complainant had not booked any air tickets; he took up the matter with OP-Bank to find out the correctness of FTV. Then he came to know that a person by name one Mohanlal Chowdhury had made use of his Can Card Number to book air tickets through internet. Immediately thereafter, the complainant took up the matter with OP for reversal of debit entry as he had not made use of the credit card and somebody had fraudulently used his card number. Thereafter, OP-Bank by its letter dt.24.01.2009 communicated that it promptly contacted the concerned acquirer bank and succeeded in getting back Rs.8,299/- and credited the same to the complainant’s S.B account on 27.12.2008. However, the OP insisted the complainant for the balance amount of Rs.18,782/- which they could not recover from the acquirer bank. OP while demanding for the balance amount, holding complainant responsible for the same stated that it was the complainant’s responsibility not to dis-close CVV number to anyone or not to part with the possession of the card. The complainant was totally unaware that there exists a three digit number on the reverse side of the card called CVV number through which anyone can make online purchases through internet. It was the bounden duty of the OP-Bank to communicate and educate its customers i.e., the cardholders as to how they should keep the CVV numbers secret and not accessible to others, when the cards are swiped. The complainant re-collected after the fraudulent act of one Mohanlal Chowdhury coming to light that when he had used the credit card for the last time at High Gates Hotel at Church Street, Bangalore for making payment of the bill relating to the lunch he had, there was considerable delay in return of the credit card by the waiter, who had taken the same to the cash counter for swiping the same. On thorough enquiry, it came to light that at the Travel Agent’s place in that hotel, the disputed air tickets were booked in the name of one Sri Mohanlal Chowdhury by fraudulently using the Can Card CVV number of the complainant. Immediately thereafter, the complainant lodged a complaint with the Chandra Layout Police and they are investigating the matter. Apart from the fraudulent act on the part of the miscreants, the complainant is aggrieved by the fact that the OP-Bank which issued the credit card had not communicated to him that there is a three digit number on the reverse side of the card called CVV number, which has to be maintained as a secret number, known only to the Card Holders. Had the complainant known that he would have taken pre-caution to ensure the secrecy of the same.

The fact that the OP-Bank had not communicated the existence and importance of CVV number and also the method of covering the same from public eye, amounts to deficiency of service on the part of the OP-Bank. Due to that deficiency of service on the part of the OP-Bank, the complainant has not only suffered loss but also has been put to lot of inconvenience, hardship and tension. Like in ATM cards if OP1 devised a system of having PIN number which is known only to the card holder and that needs to be typed at the time of using the card for internet purchases, then probably would not have taken place.  According to the OP-Bank, the CVV numbers are the last three digit numbers after the card number. The said CVV numbers are as open as card numbers are and hence, anybody gets the card even for a second can memorize the same along with the card number and make use of it, to defraud the genuine card holder. The complainant was totally unaware of the risks involved in having credit cards. He also did not know the existence of EVV number and the method to cover the same to have secrecy. Hence, his using the card in the restaurant and misuse of his card number and CVV number by the miscreants for fraudulent act has caused loss, inconvenience and hardship to the complainant. OP is only responsible for the agony the complainant is facing now. Hence the complaint.

4. On appearance, the OP filed version contending that the complaint is bad for non-joinder of necessary party M/s High Gates Hotel, Church Street, Bangalore and the waiter who has collected the credit card from the complainant to swipe the bill amount. The said hotel and the waiter are liable to make good the loss caused to the complainant. It is settled position of law that the District Forum cannot entertain the complaint, wherein the fraud is alleged as the same requires full dressed trail and the same cannot be determined and find out in the summary trial. It is admitted that the complainant has been using credit card and FTV issued for the month of December-2008, there was a demand for a sum of Rs.27,081/- being the air tickets booked by the complainant through internet. One Mr.MOHAN Lal Choudhary had made use of complainant’s can card number to book air tickets through internet. After the complainant approached the OP-Bank, OP contacted acquirer Bank and successful in getting back Rs.8,299/- and credited the same to the complainant’s SB Account. Even after adjusting the said amount, still the complainant is liable to pay balance amount of Rs.18,782/- to the OP-Bank. The complainant is responsible for not keeping the credit card without disclosing CVV No. to any one or not to part with the possession of the card. It is denied that the complainant was unaware that there exists a three digit number on the reverse side of the card called CVV number. It may be true that 20 years back the practice of internet Banking or Transacting for purchasing online internet was not in vogue. However, as and when new technologies are applied to the existing facilities, the OP-Bank used to send broacher to its customers to make aware and use of new facilities available along with the existing facilities. The complainant was aware of the importance of CVV number in the credit card and he was also using the credit card for booking train tickets through internet. The OP sent broacher along with the card as and when previous cards are expired and new cards are issued to the customers. It is the bounden duty of the complainant to read the broacher sent by the OP-Bank before using the credit card and the complainant without reading the broacher cannot make reckless and baseless allegations against the OP-Bank. The complainant had lodged the complaint with Chandra Layout Police Station and OP-Bank has furnished necessary information and documents to trace the culprit. It is specifically denied that, OP-Bank had not communicated the existence and importance of CVV number and also method of covering the same from public eye and there is no deficiency of service on the part of the OP-Bank. The complainant handed over the card to the waiter of the hotel the waiter colluding with the travel agent in the same Hotel misused the card to cause loss to the complainant. The OP cannot step into the shoes of indemnifier for the ignorance of the complainant. Ignorance of taking precautionary measures as per the broacher is no excuse. It is the prime responsibility of the card holder not to disclose the CVV number to any one or part with the card. The complainant is not entitled for the any relief’s and he has not placed on records any evidence demonstrating to claim, compensation of Rs.50,000/- towards mental agony, hardship, inconvenience, losses etc., said to have been caused by the OP due to the alleged deficiency of service. It is prayed to dismiss the complaint with the exemplary costs.

5.   In order to substantiate the complaint averments, the complainant filed affidavit evidence. The Manager of OP-Bank filed affidavit evidence in support of the defence version.

6.   The complainant filed written arguments, arguments on both sides heard.

7.   Points that arise for our consideration are:

       Point No.1:- Whether the complainant has proved          

                          the deficiency in service on the part          

                            of the OP?

Point No.2:- If so, whether the complainant is

                   entitled for the reliefs now claimed?

       Point No.3:- To what Order?

8. We record our findings on the above points:

Point No.1:- Negative.

Point No.2:- Negative.

Point No.3:- As per final Order.

R E A S O N S

9.   It is not in dispute that the complainant has been using OP-Bank credit card and his latest card bears No.045436301 3729 1001. When the complainant received FTV for the month of December-2008, there was a demand for payment of Rs.27,081/- being the air tickets booked through internet.  As the complainant had not at all booked air tickets by making use of his credit card, he took up the matter with the OP-Bank, then he came to know that a person by name Mohanlal Chowdhury had made use of Can Card number of the complainant to book the air tickets through internet. The OP-Bank contacted the concerned acquirer Bank and succeeded in getting back Rs.8,299/- and credited the same to the complainant’s S.B.Account on 27.12.2008. OP-Bank insisted the complainant for the balance amount i.e., Rs.18,782/- which they could not recover from the acquirer bank.

10.         The fact that the Can Card of the complainant has been misused at the time when the complainant has handed over that card to the supplier to pay the hotel bill for the lunch taken at hotel High Gates Church Street, Bangalore on 19.12.2008 by the cashier of that hotel is clear from the charge sheet filed by the jurisdictional Police in 18^th ACMM Court, Bangalore in CC.No.299/2011. Based on the complaint lodged by the complainant, the Police after investigation filed the charge sheet. The copy of the order sheet, F.I.R, Charge Sheet and Statement of witnesses recorded are produced by OP. Thus it becomes clear that it is on account of negligence on the part of the complainant in handing over the Can Card to the supplier of the hotel, the Can Card has been misused for booking the air tickets through internet.

11.   The main allegation against this OP is that OP Bank had not communicated the existence and importance of CVV number and also the method of covering the same from public eye, while issuing the credit card to the complainant. Had the complainant was aware of these things he could not have handed over the card to the supplier of the hotel as such the same amounts to deficiency in service on the par of OP.

The defence of the OP is the complainant has been making use of credit card since 20 years, as and when new technologies are applied to the existing facilities, OP-Bank used to send brochure to the customers to make aware and use of new facilities available along with existing facilities. The complainant was aware of the existence and importance of CVV number in the credit card and he was also using the credit card in booking train tickets through internet. It was the duty of the complainant to read the brochure sent by OP before using the credit card. Thus it is denied that OP had not communicated the complainant regarding the existence of three digit numbers on the reverse side of the card called CVV number which has to be maintained as a secret number.

It may be noted that the complainant is well educated person making use of the credit card for the last 20 years. It is difficult accept that he was not aware of the existence and importance of CVV number in the credit card and to maintain secrecy of that number. The complainant was making use of the credit card to book the train tickets through internet. Without knowing the existence of CVV number it is difficult to accept that the complainant could have used his credit card for booking the railway tickets on internet. OP-Bank has issued the brochure to educate the customer regarding the use of credit cards and the existence and importance of that CVV number in the credit cards. The brochure produced by OP is marked as EX.D1 which contains the important points to prevent any misuse of the card. One of the points mentioned is:

“Never give out photocopies of both sides of a credit card to anyone. The last 3 digits printed after the card number, on the reverse of the card (called the CVV number), required for online purchases and mail order transactions, may be misused”.  

The other important points are given to the customers for using the card to prevent any misuse of the same. Under these circumstances, we are of the view that there is no any deficiency of service on the part of the OP. The complainant is entitled for the any of the relief’s claimed. Accordingly we proceed to pass the following:

O R D E R

The complaint filed by the complainant is dismissed.  Considering the nature of dispute no order as to costs.

 (Dictated to the Stenographer and typed in the computer and transcribed by her verified and corrected, and then pronounced in the Open Court by us on this the 13^th day of January 2012.)

 MEMBER                                                PRESIDENT

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