Chandigarh

DF-II

CC/412/2021

Ravi Choudhary - Complainant(s)

Versus

Citibank - Opp.Party(s)

In person

27 Aug 2024

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION-II

U.T. CHANDIGARH

 

Consumer Complaint No.	:	CC/412/2021
Date of Institution	:	02/07/2021
Date of Decision	:	27/08/2024

       

                                       

                       

 

 

 

Ravi Choudhary s/o Sh. Shish Pal Singh r/o H.No.31/Type-II, Panjab University Residential Complex, Sector 25, Chandigarh.

                                ...  Complainant

Versus

1. Citibank, SCO 4-5, Sector 8-C, Madhya Marg, Chandigarh 160009.

2. Trans Union CIBIL Ltd., One World Centre, Tower 2A, 19th Floor, Senapati Bapat Marg, Elphinstone Road, Mumbai 400013.

…. Opposite Parties

 

BEFORE:
	SHRI AMRINDER SINGH SIDHU	PRESIDENT
	SHRI B.M.SHARMA	MEMBER
ARGUED BY:
	Complainant in person (through VC)
	Sh.Abhinav Punj, Counsel for OP-1
	Sh.Gaurav Bhardwaj, Counsel for OP-2 (earlier ex-parte) joined proceedings vide order dated 29.2.2024.

       

ORDER BY AMRINDER SINGH SIDHU, M.A.(Eng.),LLM,PRESIDENT

1.        The complainant has filed the present consumer complaint pleading that he is holder of credit card of OP-1 since the year 2003. The complainant had used the said credit card and made all the payments on time till May 2018.  The complainant further alleged that he closed his credit card account in May 2018 as he did not need the same any longer. The complainant mentioned in his complaint that he had cleared all the payments due and pending towards the credit card before requesting OP-1 to close the credit card vide email dated 11.5.2018 but OP-1 did not acknowledge the aforesaid request of the complainant and sent another email dated 17.5.2018 asking for five more days to resolve the request put forward by the complainant.  OP-1 kept sending reminders to the complainant in the form of text messages.  The complainant pleaded in his consumer complaint that during the years of using the credit card issued to him by OP-1 he had accumulated 45115 reward points and conversion rate of each reward point is equivalent to 35 paisa.  The statement from the period 26.4.2018 to 27.5.2018 reflects the reward points earned by the complainant.  However, the OPs mischievously did not credit the amount by encashing 45115 reward points earned by the complainant by using the aforesaid credit card in the account of the complainant as payment for the amount due and payable by him towards the said credit card.  The complainant received email by OP-1 in which it had malafidely shown an amount of Rs.31,912.47 due and pending towards the complainant.  OP-1 through this email threatened the complainant that it would report the matter with credit bureau if the amount so demanded by OP-1 was not paid immediately by the complainant. The complainant duly replied to the email explaining that no solution could be provided by OP-1 to his grievance.  The complainant had to start construction of his house and, therefore, approached the State Bank of India to grant him loan but it informed the complainant that his Trans Union CIBIL score was low due to non payment of his credit card bill due towards OP-1 and hence they could not provide him loan amount that he had requested for and also the rate of interest chargeable to him for loan would be on higher side due to his low credit score.  The complainant had no option but to accept the same.  Thus, it caused financial loss and mental trauma to him.  The complainant also served a legal notice to OP-1 but with no success.  Alleging that the aforesaid acts of omission and commission on the part of the OPs amount to deficiency in service and unfair trade practice, complainant has filed the instant complaint praying for compensation of Rs.1.00 crore for causing mental agony, trauma loss of public image and social standing, financial loss and harassment suffered by the complainant due to unlawful acts committed by OP-1 and for further direction to OP-1 to issue no due certificate towards credit card and clear the ‘write off’ status from the complainant’s account and direct OP-2 to rectify the details pertaining to the account of the complainant.
2.        In its written version OP-1 took preliminary objections that the complainant is guilty of misleading this Commission by not placing on record the material evidence for the proper adjudication of present consumer complaint. The emails annexed by the complainant with the consumer complaint are not complete communications and the complainant with malafide intentions has not placed on record various emails sent to him by the answering OP. It is submitted that that the main grievance of the complainant is that OP-1 failed to acknowledge his request dated 11.5.2018 to close his credit card  as he had paid the total due amount of the OP but the actual fact is that the complainant has not deposited the outstanding amount of Rs.1,48,314.94 but Rs.1,37,780/- only as per the credit card statement for the month of April 2018 and for the balance outstanding amount he had requested the bank to redeem 45115 reward points accumulated against his credit card.  OP-1 further submitted that the complainant had not disclosed the fact that, at the time of his request, his credit card was already blocked on account of his failure to provide updated Know Your Customer (KYC) documents.  The complainant has not submitted his KYC documents despite of repeated requests of OP-1 and as per Reserve Bank of India’s Know Your Customer guidelines (DBR.AML.BC.No.39/14.01.001/2018-19) banks are required to periodically update identification data of their customers including customers photograph, proof of identify and proof of address.  The system logs for the intimation sent to the complainant are annexed as Annexure OP-1/1 by which complainant was requested to update his KYC documents. As the complainant failed to submit his KYC to OP-1 so his credit card was blocked on 25.4.2018 due to non submission of KYC documents.  A copy of alert communication sent to the complainant is Annexure OP-1/2. Further, it was informed to the complainant vide email dated 24.5.2018 that upon submission of KYC documents and reactivation of his credit card in question, complainant may proceed with the redemption of his accumulated reward points towards payment of his credit card outstanding.  The complainant is guilty of misleading this commission by not placing on record the above said email dated 24.5.2018 received by him from the bank.  It is further submitted that the consumer complaint is vague, baseless and devoid of merit.  The remaining allegations have been denied, being false. Pleading that there is no deficiency in service or unfair trade practice on its part, OP-1 prayed for dismissal of the consumer complaint.
3.        Despite due service, OP-2 did not put in appearance before this Commission and accordingly it was proceeded against ex-parte vide order 25.7.2022.  However, subsequently Sh. Gaurav Bhardwaj, Advocate filed vakalatnama on behalf of OP-2 and joined the proceedings.
4.        The contesting parties filed their respective affidavits and documents in support of their case.
5.        The complainant chose not to file the replication.
6.        We have heard the complainant in person, learned Counsel for the OPs and have gone through the documents on record, including written arguments.
7.        The main issue involved in the present consumer complaint is whether there is any deficiency in service or unfair trade practice on the part of OPs or not? 
8.        The allegation of the complainant is that OP-1 failed to honour his request dated 11.5.2018 to close his credit card in question.  The complainant has alleged that on the date of closure of his credit card, he had deposited the total outstanding amount due i.e. Rs.1,48,314.94 as per the credit card statement for the month of April 2018.  The complainant further disclosed that he had deposited an amount of Rs.1,37,780/- and for the payment of balance amount he had requested the bank to redeem the 45115 reward points accumulated against his credit card.   It is observed that the OP had blocked the complainant’s account on his failure to submit his Know Your Customer (KYC) documents on 25.4.2018.  It was done by OPs as per Reserve Bank of India’s Know Your Customer guidelines (DBR.AML.BC.No.39/14.01.001/2018-19) whereby banks are required to periodically update identification data of their customers. 
9.        The bank has taken the objection that once the complainant’s credit card was blocked by OP-1 due to non submission of KYC documents on 25.4.2018 then 45115 reward points could not be redeemed until and unless the credit card is active and, therefore, the complainant has paid Rs.34,184/- less than the amount due on the date of payment.  The complainant did not come forward to submit/update his KYC in order to activate his credit card and thereafter possible redemption of 45115 reward points equivalent to 35 paisa towards the balance payment could not be effected. In order to prove its bonafide, OP-1/bank has placed on record the message alert sent on the mobile phone of the complainant dated 25.4.2018 vide which the complainant was requested to update his KYC with the bank.  Hence, it is concluded that when the credit card of the complainant is blocked by OP-1 for non-submission of KYC documents, then the reward points accumulated in the credit card of the complainant could not have been redeemed until and unless the credit card is activated by updation of KYC documents by the complainant.
10.        In view of the aforesaid discussion, we are of the opinion that the complainant has miserably failed to prove any deficiency in service or unfair trade practice on the part of OPs and the present consumer complaint, being meritless, is hereby dismissed, leaving the parties to bear their own costs.
11.        The pending application(s) if any, stands disposed of accordingly.
12.        Certified copy of this order be sent to the parties, as per rules. After compliance file be consigned to record room.

 

Announced 27/08/2024 hg	(AMRINDER SINGH SIDHU) PRESIDENT
	(B.M.SHARMA) MEMBER