Tamil Nadu

North Chennai

CC/288/2018

C.G.Balaji - Complainant(s)

Versus

Citibank - Opp.Party(s)

Raj & Raj Associates

05 Jan 2023

ORDER

Complaint presented on  :08.04.2011 Date of disposal               :05.01.2023

         

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,

CHENNAI (NORTH)

@ 2^ND Floor, T.N.P.S.C. Road, V.O.C. Nagar, Park Town, Chennai – 600 003.

 

PRESENT : THIRU. G. VINOBHA, M.A., B.L.,                       :PRESIDENT

            TMT. KAVITHA KANNAN, M.E.,                             : MEMBER-I  

            THIRU.V.RAMAMURTHY,B.A.,B.L.,PGDLA., :MEMBER-II

                              

C.C. No.288/2018

DATED THIS THURSDAY THE 05^TH  DAY OF JANUARY 2023

 

C.G.Balaji,

S/o.Govindachari,

No.17, Old No.8, Ramanujam Street,

Choolaimedu,

Chennai-600 094. 

                                                                                                                                                                  .. Complainant.                                                                          ..Vs..

Citibank NA

Rep. by Manager,

No.2, Club House Road,

Chennai-600 002.                                                             ..  Opposite parties.

 

 Counsel for the complainant                       : M/s.Raj & Raj Associates.

Counsel for  opposite party                                 : M/s.V.Adhivarahan and 2 others

 

ORDER

THIRU. G.VINOBHA, M.A., B.L.        : PRESIDENT

This complaint has been filed by the complainant against the opposite party under section 12 of the Consumer Protection Act, 1986 prays to cancel the entries made by the opposite party in the records pertaining to the complainant with the credit information Bureau (India) Limited Mumbai and to pay Rs.10 lakhs as compensation for deficiency in service and mental agony to the complainant and cost.

This complaint was originally filed before the District Commission, Chennai (South) and taken on file in C.C. No. 110/2011.  Thereafter, the said complaint has been transferred to this Commission as per the proceedings of the Hon’ble S.C.D.R.C. and taken on file as C.C. No.288 /2018.

1.THE COMPLAINT IN BRIEF:

          The complainant submitted that he availed credit card facilities from the opposite party card numbers 5425569028315018 and 4568229168490002 from the year 1995 and upto the year 2000.  The complainant cancelled the both cards in the October 2000 and was accepted by the opposite party. As there was an outstanding in his account he offered to settled the same with the opposite party and accordingly one time settlement for Rs.95000/- was arrived and which the opposite party agreed.  The  complainant submitted that he issued ten cheques in favour of opposite party and the details are given in the letter dated 27.10.2000 to the opposite party. The above said entire amount due to the opposite party was fully paid and settled. The opposite party issued the acknowledged and payment  receipts on various dates. Further the complainant had not availed the credit card facility of the opposite party till date. The complainant submitted that when he approached few banks for availing educational loan for his elder son’s study abroad in march/april 2010 he was informed by the concerned bank that he is ineligible to get any financial assistance from the bank as his credit rating as maintained by the Credit Information Bureau(India) Limited Mumbai. Aggrieved by the same he had applied of his own CIBIL Credit report to the CIBIL in June 2010, the CIBIL sent a report dated 17.07.2010 along with letter dated 19.07.2010 stating that the opposite party has kept reporting to them about the outstanding in the credit card which was fully paid and settled in January 2001. Further the complainant submitted that he was surprised and shocked that the opposite party kept sending intimation to the CIBIL that the complainant has left a high credit of Rs.380513/- with the opposite party which has been written off. The complainant submitted that the opposite party reported that his account was closed on 23.12.2000 whereas the complainant has been making payments right upto 18.07.2001 which remittances have been receipts and acknowledged by the opposite party and issued the receipts. The complainant submitted that the opposite party never maintained proper accounts for payments received by them.  Due to their improper and arbitrary accounting the opposite party reported to the CIBIL on 31.01.2010 that they have ‘written off’ the said amount of Rs.380513/-.  Further submitted that he was never approached by the opposite party for the payment f the aforesaid money at any point of time before 31.01.2010. Further the account was closed on 23.12.2000 whereas payment of Rs.10000/- was made on 18.07.2001.This lethargic and negligent act of the opposite party committed deficiency in service rendered to the complainant. The complainant sent lawyer notice to the opposite party on 12.08.2010, the opposite party failed to reply. Hence prayed that cancel the CIBIL record entries pertaining to the complainant and Rs.10/- lakhs as  compensation for deficiency in service. Hence this complaint. 

2.WRITTEN VERSION OF OPPOSITE PARTY IN BRIEF:

The opposite party deny the averments and allegations mentioned in the complainant as false and frivolous except those that are specifically admitted and put the complainant to strict proof of the same. The opposite party submitted that the complainant had availed two credit card from the opposite party vide card No. 5425569028315018 and 4568229168490002 on 30.09.1992 and 30.11.1995 and the cards are governed by the terms and conditions. Opposite part submitted that the card had been extensively used by the complainant herein payments thereon had been highly irregular.  There used to be full/part payments and no payments as against the outstanding shown in the monthly statements sent across to the complainant. Further the complainant omits to make full payment of the dues under his credit card usage as per the statement within the stipulated time, late payment and interest charges would be billed as per the terms and conditions. Further the complainant failed to clear the total amount due before the payment due date or avails the Revolving credit Facility choosing to pay the minimum amount due. The interest would be charged only upon the unpaid amount on the average daily balance which comprises of the previous balance that is carried forward and subsequent transactions. On cash advance interest would be applicable from the date of transaction till the date of settlement and would apply even where RCF is not availed. The RCF offers the flexibility of paying either the total amount due or the minimum amount due.  However the minimum amount due is not remitted before the payment due date indicated in the monthly statement of account, late payment charges are levied as applicable. The charges levied by the bank are in accordance with the RBI guidelines. It is the case of the complainant that outstanding had been shown illegally in his account even after amounts have been settled under OTS.  Further the exceptional circumstances explained and clear that the principal outstanding could not be recovered in his case. Therefore the complainant offered a settlement payment plan in October 2000, the complainant was required to pay a sum of Rs.95000/- in ten installments.  Further the credit facilities to the card have been withdrawn with effect from October 2000.  Whenever a credit card is withdrawn for financial reason, credit facilities towards all the linked cards would also be withdrawn automatically. It was found that the complainant, the payments were not regular as per the terms and conditions of the settlement and therefore the settlement has become void.  When a settlement is treated void, as per the process, the charges will not be reversed in the card account.  Further based on such settlement offer credit card facilities have been withdrawn from October 2000 which was informed to the CIBIL, but the cheque issued in Cheque No.808842 for Rs.10000/- was dishonoured which resulted in one time settlement offer has become void as per the conditions of such settlement which dishounour was suppressed by the complainant and further submitted that based on such one time settlement the same was reported to CIBIL in October 2000 as account settled when actually the complainant has not paid entire due and after receipt of legal notice on perusal of records the opposite party as a good will gesture has written off the loan the debits were reversed and CIBIL status updated as NIL which was informed to the complainant and counsel and even thereafter the complaint have been filed vexatiously as alleged in the  complaint, the opposite party have not committed any deficiency in service and the complaint is totally misconceived.

3. POINTS FOR CONSIDERATION:

1. Whether the opposite party caused any deficiency in service  as alleged in the complaint?

2. Whether the complainant is entitled to the reliefs prayed in the complaint.

If, so to what extent?

Complainant had filed proof affidavit, written argument and documents Ex.A1 to A8 were marked on the complainant side.  The Opposite party filed written version, proof affidavit, written argument and documents Ex.B1 to B7 were marked on the opposite party side.

4. Point No.1:-

          The fact that the complainant had availed credit card facilities from the opposite party vide card No. 5425569028315018 and 4568229168490002 from the year 1995 to 2000 and the fact that the complainant is the customer of the opposite party bank is not in dispute. But according to the complainant he cancel the both the cards in October 2000 itself based on one time settlement offer given by the opposite party for Rs.95000/- which is payable in ten installment and accordingly the complainant had paid that amount as stated in para. 4 of the complaint with final payment by cash of Rs.10000/- on 16.07.2001 and all those payments receipts were issued by the opposite party which were marked as Ex.A3 to A5 and further contended that all the cheque given by him were honoured and he discharged the liability but when he approached a few banks in April 2010 for availing education loan for his elder son’s he was informed by the bank that he is not eligible for the loan as his credit rating in the CIBIL was against him and when the complainant applied for a copy of CIBIL credit report dated 17.07.2010 it was found that the opposite party bank has been improperly reporting to them that he is having outstanding in his credit cards which were already fully paid as early in January 2001 itself and further contended that he was having a creditor Rs.380513/- with the opposite party which has been written off and due to the improper and arbitrary accounting of the opposite party by reporting to the CIBIL as written off the above said  amount due to which the complainant was not able to obtain any loan from any bank and though the account was closed 23.12.2000 but opposite party was receiving payment till 18.07.2001 which is negligent and defect on the part of the opposite party and alleged that the  opposite party committed deficiency in service by reporting a wrong information to the CIBIL and furnishing improper account.

5.  But on the otherhand the opposite party mainly contended that the complainant who availed two credit card facilities is governed by the terms and conditions of the card member agreement which is marked as Ex.B1 as per which if a customer omits to make a full payment of the dues within stipulated time late payment, interest charges and penal charges would be billed and such charges were levied in accordance with RBI circular and any payment made by the customer will be first adjusted towards fees and service charges and only thereafter towards purchases and cash withdrawals which were mentioned on the reverse of the all card transactions and further contended that though one time settlement in respect of credit card outstanding was offered for a sum of Rs.95000/- payable in ten installments and the final installment was extended till 2001 and based on such settlement offer credit card facilities have been withdrawn from October 2000 which was informed to the CIBIL, but the cheque issued in Cheque No.808842 for Rs.10000/- was dishonoured which resulted in one time settlement offer has become void as per the conditions of such settlement which dishonour was suppressed by the complainant and based on Ex.A1, A3 to A5 receipts which were issued by the opposite party subject to realization of cheque were taken advantage by the complainant and he falsely alleges that entire amount was paid as per settlement which is incorrect. 

6.  On perusal of Ex.A1, A3 to A5 it is found that those repayment receipts were addressed to the Choolaimedu address of the complainant and in the receipts it is stated that the chques DDs are subject to realization, but in Ex.A2 which is one time settlement letter it is found that in case of dishonor of any cheques this settlement will stands cancel and based on this it is found that though initially based on Ex.A2 the opposite party informed to the CIBIL Bureau that the account was closed in October 2000 but subsequently the charges were reversed and as found in Ex.B4 and B5 which were statement of accounts from 2001 to 2010 in respect of the two credit cards the charges were reversed by the opposite party and after receipt of Ex.A8 legal notice which was issued on 12.08.2010 the opposite parties verified the account details of the complainant and found that after reporting closure of the account based on one time settlement and since the same was not fulfilled the charges were reversed in the complainant account but as a gesture of good will to the customer it seems that the opposite party has written off the due amount and shown the due amount as zero in the statement of account which were marked as Ex.B4 and B5 which were found in page no.160 and 269 of Ex.B4 and B5 and also informed about the reversal of charges as well as after review of records the opposite party in the very same reply has explained about the reporting to CIBIL in respect of closure of account in October 2000 and also the subsequent reversal due to non-fulfillment of settlement offer and further stated in Ex.B6 reply that in order to achieve greater customer satisfaction the opposite party has reversed the outstanding amount in both the cards which will be reflected in the next monthly statement which will show NIL outstanding and also informed the complainant to treat that letter as no due letter in respect of card account as found in Ex.B6 at page 273 and also informed the complainant that the opposite party has sent an update to the CIBIL for doing necessary changes in their records based on reversal of charges and also requested the complainant to get latest CIBIL report by mailing to the CIBIL and this reply is dated 03.09.2010 but the complainant by suppressing this reply has filed the complaint after this reply on 23.03.2011 and hence it is found that there was no cause of action at the time of filing this complaint. It is found from Ex.B3 as per the CIBIL circular dated 07.05.2010 in case an account has been classified as written off data should be submitted to CIBIL by the respective bank and accordingly the opposite party based on Ex.A2 one time settlement under the impression that the complainant will settle the amount as per the agreed terms seems to have informed to the CIBIL in October 2000 by stating that account closed but due the dishonor of one cheque issued by the complainant  as stated earlier the opposite party had reversed the account closure and hence the complainant cannot take advantage of such closure and allege that the opposite party has been collecting payments till 2010 which is improper in respect of closed account in the year 2000 and on that score the complainant is not entitled to allege negligence or improper maintenance of account by the opposite party. The complainant relied upon a decision reported in 2018 SCC Online NCDRC 1277 which is not applicable to the facts of this case. The complainant is not entitled to allege that he has no knowledge about the reversal of entry since he has been receiving the monthly statement of account from the opposite party till the year 2010.  The complainant has given two addresses to the bank and in some of the statement of account which were marked Ex.B4 and B5 his office address at Poonamalle High Road is shown and in the receipts which were marked as Ex.A3 to A5 and also in Ex.A2 is residential address is shown located in Choolaimedu which is found in the complaint and Ex.B6 reply was sent to Poonamalle Address and at any event it is not the case of the complaint that he was not in receipt of Ex.B6 which according to opposite party was duly informed to the complainant, but however there is no acknowledgement was filed by the opposite party to prove that Ex.B6 was received by complainant.  But at any event it is found from Ex.B7 as additional document by the opposite party which is copy of CIBIL credit information report which was obtained by the opposite party subsequent to filing of the complaint dated 23.11.2012 in which it is found that at page no.4 that the two credit card accounts were closed on 23.12.2000 and thereafter since 2010 the written off status had been deleted and NIL status is shown but the complaint had been filed on 23.03.2011 much later after the bank reversed the charges and reported to the CIBIL accordingly and hence there is no cause of action for filing the complaint and there is no necessity for giving direction as prayed in the complaint to cancel the entries made in the record of CIBIL pertaining to complainant as it was already fulfilled and hence it is found that there is no deficiency in service as alleged in the complaint.  Point No. 1 is answered accordingly.

7. POINT NO.2

Based on findings  given to Point No.1 there is no deficiency in service on the part of the opposite party and hence the complainant is not entitled for a direction to cancel the entries in the CIBIL record or compensation as claimed in the complaint. Point No.2 is answered accordingly.

         In the result the Complaint is dismissed. No costs.

Dictated  by the President to the Steno-Typist taken down, transcribed and computerized by him, corrected by the President and pronounced by us in the open Commission on this the 05^th  day of January 2023.

 

MEMBER  I                  MEMBER  II                           PRESIDENT

 

LIST OF DOCUMENTS FILED BY THE COMPLAINANT:

Ex.A1	19.10.2000	Receipt No.003300 issued by the opposite party for Rs.5000/-
Ex.A2	27.10.2000	Letter of the opposite party to the complainant.
Ex.A3	01.11.2000	Receipt No.003805 issued by the opposite party for Rs.90000/-
Ex.A4	08.01.2001	Receipt No.163898 for Rs.10000/-
Ex.A5	18.07.2001	Receipt No.170492 for Rs.10000/-
Ex.A6	17.07.2010	Report from Credit Information Bureau India Ltd.,
Ex.A7	19.07.2010	Communication from CIBIL enclosing report.
Ex.A8	12.08.2010	Lawyer notice issued to the opposite party with proof of delivery

 

LIST OF DOCUMENTS FILED BY THE OPPOSITE PARTY:

Ex.B1		Card member agreement containing the terms and conditions.
Ex.B2	06.07.2011	Copies of the court orders relating to rate of interest.
Ex.B3	07.05.2010	CIBIL circular.
Ex.B4	22.08.2011 To 21.09.2010	Statement of account for card No.4568229168490002.
Ex.B5	22.08.2011 To 21.09.2010	Statement of account for card No.5425569028315018.
Ex.B6	03.09.2010	Reply to legal notice by bank.
Ex.B7	23.11.2012	Copy of CIBIL consumer credit information report in    respect of the complainant issued by CIBIL.

 

MEMBER  I                  MEMBER  II                                     PRESIDENT