Tamil Nadu

South Chennai

cc93/2008

s arunachalam - Complainant(s)

Versus

city bank - Opp.Party(s)

a palaniappan & co

11 Apr 2019

ORDER

                                                                        Date of Filing  : 10.03.2008

                                                                          Date of Order : 11.04.2019

                                                                                  

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (SOUTH)

@ 2^ND Floor, T.N.P.S.C. Road, V.O.C. Nagar, Park Town, Chennai – 3.

 

PRESENT: THIRU. M. MONY, B.Sc., L.L.B, M.L.                    : PRESIDENT

TR. R. BASKARKUMARAVEL, B.Sc., L.L.M., BPT., PGDCLP. : MEMBER

 

C.C. No.93/2008

DATED THIS THURSDAY THE 11^TH DAY OF APRIL 2019

                                 

S. Arunachalam,

S/o. Late. Sivapatham,

No.51, Trunk Road,

Porur,

Chennai – 600 116.                                                      .. Complainant.                                                       

 

                                                                                          ..Versus..

 

The Manager,

City Bank,

Customer Service,

Credit Card Division,

Anna Salai,

Mount Road,

Chennai – 600 002.                                                    ..  Opposite party.

 

Counsel for the complainant      : M/s. A. Palaniappan & others

Counsel for the opposite party  : M/s. V.V. Giridhar & another

 

ORDER

THIRU. M. MONY, PRESIDENT

       This complaint has been filed by the complainant against the opposite parties under section 12 of the Consumer Protection Act, 1986 pray to refund a sum of Rs.77,890/- being the excess amount collected by the opposite party from the complainant in respect of loan account Nos.a.21117206, b.21149894, c.21195330 & d.41199459 and to pay a sum of Rs.2,00,000/- towards compensation for damages, mental agony, hardship, financial loss and suffering with cost to the complainant.

1.    The averments of the complaint in brief are as follows:-

The complainant submits that he had availed a credit card facility from the opposite party vide No.4564 0700 0983 9005.   The complainant submits that he paid the dues promptly without any default.  Eventhough availed the following 4 loans vide account Nos.21117206, 21149894, 21195330 & 41199459.  The complainant submits that on 21.04.2007, the complainant contacted the opposite party over phone and expressed his intention to pre-close his all loan accounts and after telephonic discussion, the complainant has collected the total amount due towards the four loans is of Rs.4,86,659.48/-.  The complainant submits that on 21.04.2007, the complainant has paid a sum of Rs.4,86,659.50/- by means of cheque bearing No.57230 drawn on TNSC Bank, Valasaravakkam Branch dated:21.04.2007 and another cheque  for a sum of Rs.77,890/- by way of cheque bearing No.57231 drawn on TNSC Bank, Valasaravakkam Branch dated:21.04.2007 which was duly acknowledged by the opposite party bank and encashed the amount.  Thereby, the complainant has paid the entire amount including foreclosure charges.   The complainant submits that he has availed credit card loan and there is no terms and conditions for pre-closure charges. 

2.     The complainant submits that after due verification of the amount and account, the complainant came to know that the opposite party had collected excess amount from the complainant by way of instalment for the period of May 2007 and June 2007.  The complainant submits that on 21.04.2007, the complainant has paid a sum of Rs.5,64,549.50/- towards the entire settlement / fore-closure of all the four loans.   The complainant submits that evenafter repeated requests in relation with the excess payment, the opposite party has agreed to refund the same to the complainant or adjust the amount.  The complainant submits that to the shock and surprise, the opposite party issued statement dated:22.06.2007, for the period from 20.05.2007 to 21.06.2007 claiming a sum of Rs.13,258.66/-  as due which is apparently false and thereafter, by way of statement for the period commencing from 20.05.2007 to 21.06.2007 and dated:22.06.2007 the opposite party claimed a sum of Rs.13,258.66/- arbitrarly.  Since, after payment on 21.04.2007 and there is no transaction by using the credit card and due requests made for closure of the credit card account.  Since the opposite party has not come forward to settle the issue, and refund the excess amount the complainant issued legal notice dated:29.7.2007 for which, the opposite party sent reply with untenable allegations without any specifications dated:30.08.2007 but not come forward to settle the claim.   The act of the opposite party amounts to deficiency in service and unfair trade practice which caused great mental agony.   Hence, the complaint is filed.

3.      The brief averments in the written version filed by  opposite party is as follows:

The opposite party specifically denies each and every allegation made in the complaint and put the complainant to strict proof of the same.    The opposite party states that the opposite party after due compliance issued credit card bearing No.4564 0700 0983 9005 to the complainant.   On the basis of the credit card, the complainant availed 4 loans for a sum of Rs.3,00,000/-, Rs.43,000/-, 1,28,477.58/- and Rs.2,84,000/- against loan Nos.21149894, 21195330 & 21117206 which is to be payable in 36, 48 & 40 equal monthly instalments respectively which is payable by the complainant from his credit card and EMI payable by way of debiting the amount from the credit card. The opposite party states that as per the statement dated:20.04.2007 for the period from 23.03.2007 to 20.04.2007, the complainant was liable to pay a sum of Rs.77,789.20/- towards the credit card dues.    The opposite party states that all the payments were reflected in the statement of account for the credit card dated:20.05.2007 and 22.06.2007 that a sum of Rs.4,86,659.48/- was paid towards the loan and Rs.77,889.20/- was paid towards credit card due.   The opposite party states that since the complainant has not submitted any letter of foreclosure, the opposite party was not able to foreclose the credit card account of the complainant.  Therefore, there is no deficiency in service on the part of the opposite party.  Hence, the complaint is liable to be dismissed.

4.     To prove the averments in the complaint, the complainant has filed proof affidavit as his evidence and documents Ex.A1 to Ex.A12 are marked.  Proof affidavit of the opposite party is filed and no document is marked on the side of the opposite party. 

5.      The points for consideration is:-

1. Whether the complainant is entitled to a sum of Rs.77,890/- paid in excess towards pre-closure of loan as prayed for?
2. Whether the complainant entitled to a sum of Rs.2,00,000/- towards compensation for damages, mental agony and deficiency in service with cost as prayed for?

6.      On point:-

The opposite party filed his written arguments.  The complainant has not filed any written arguments and not turned up to advance any oral arguments.  Perused the records namely; the complaint, written version, proof affidavits and documents.  The complainant pleaded and contended that he had availed credit card facility of the opposite party vide No.4564 0700 0983 9005.   Further the contention of the complainant is that he paid the dues promptly without any default; eventhough availed the following 4 loans vide account Nos.21117206, 21149894, 21195330 & 41199459.  Further the contention of the complainant is that on 21.04.2007, the complainant contacted the opposite party over phone and expressed his intention to pre-close his all loan accounts and after telephonic discussion, the complainant has paid the total amount due towards the four loans is of Rs.4,86,659.48/-.  Ex.A3 & Ex.A4 are showing the details of loan account numbers, loan amounts and pre-closure charges.  

7.           Further the contention of the complainant is that on 21.04.2007, the complainant has paid a sum of Rs.4,86,659.50/- by means of cheque bearing No.57230 drawn on TNSC Bank, Valasaravakkam Branch dated:21.04.2007 and another cheque  for a sum of Rs.77,890/- by way of cheque bearing No.57231 drawn on TNSC Bank, Valasaravakkam Branch dated:21.04.2007 which was duly acknowledged by the opposite party bank and encashed the amount which is reflected in Ex.A5 & Ex.A1  in handwritten.  Thereby, the complainant has paid the entire amount including foreclosure charges.   Further the contention of the complainant is that admittedly, the complainant has availed credit card loan and there is no terms and conditions for pre-closure charges.  On a careful perusal of records also, there is no such terms and condition produced in this Forum.   But collected huge amount towards fore-closure charges.   

8.     Further the contention of the complainant is that after due verification of the amount and account, the complainant came to know that the opposite party had collected excess amount from the complainant by way of instalment for the period May 2007 and June 2007 which is totally arbitrary and baseless amounts to unfair trade practice.  Since, it is admitted that on 21.04.2007, the complainant has paid a sum of Rs.5,64,549.50/- towards the entire settlement / fore-closure of all the four loans.  Further the contention of the complainant is that evenafter repeated requests in relation with the excess payment, the opposite party has agreed to refund the same to the complainant or adjust the amount.    But the opposite party has not taken any positive steps for such readjustment of the amount.    

9.     Further the contention of the complainant is that to the shock and surprise, the opposite party issued statement dated:22.06.2007, for the period from 20.05.2007 to 21.06.2007 claiming a sum of Rs.13,258.66/-  as due which is apparently false as per Ex.A6 and thereafter, by way of statement for the period commencing from 20.05.2007 to 21.06.2007 and dated:22.06.2007 the opposite party claimed a sum of Rs.13,258.66/- arbitrarily. Since, after payment of entire loan amount on 21.04.2007 and there is no transaction by using the credit card and due requests made for closure of the credit card account which caused great mental agony to the complainant.  Since the opposite party has not come forward to settle the issue, and refund the excess amount to the complainant, he was constrained to issue notice dated:29.07.2007 as per Ex.A8 for which, the opposite party sent reply dated:30.08.2007 as per Ex.A11 stating that “the complainant has not submitted written letter for fore-closure and the opposite party was unable to fore-close the loan”; is not acceptable.  Because admittedly, the opposite party has collected huge amount towards foreclosure charges of the loan on credit card.  The opposite party also, issued demand letter for the period 20.05.2007 to 21.06.2007 for a sum of Rs.13,258.66/- and another demand for the period of 22.08.2007 28.09.2007 for a sum of Rs.4,505.82/- is arbitrary.   Hence, the complainant is constrained to filed this case claiming refund of a sum of Rs.77,890/- being amount paid in excess towards the loan amount and compensation.

10.    The learned Counsel for the opposite party would contend that admittedly, this opposite party after due compliance issued credit card bearing No.4564 0700 0983 9005 to the complainant.   On the basis of the credit card, the complainant availed 4 loans for a sum of Rs.3,00,000/-, Rs.43,000/-, 1,28,477.58/- and Rs.2,84,000/- against loan Nos.21149894, 21195330 & 21117206 which is to be payable in 36, 48 & 40 equal monthly instalments respectively which is payable by the complainant from his credit card and EMI payable by way of debiting the amount from the credit card.   Further the contention of the opposite party is that as per the statement dated:20.04.2007 as per Ex.A2 for the period 23.03.2007 to 20.04.2007, the complainant was liable to pay a sum of Rs.77,789.20/- towards the credit card dues. On a careful perusal of records, Ex.A2, it is seen that the said sum of Rs.77,789.20/- includes the EMI for the above four loans availed by the complainant.  

11.    Further the contention of the opposite party is that the complainant suppressed the above said facts and approached this Hon’ble Forum and made a false claim.  But on a careful perusal of Ex.A3 & Ex.A4, it reads as follows:

“This is with reference to your email dated:June 04, 2007.

We are concerned to note your feedback on your recent experience with us.  We regret the inconvenience caused.

Our records indicate that the following loans have been pre-closed on June 02, 2007.  Accordingly, following pre-closure charges have been billed to your card account.

Loan Amount                                            Pre-closure charges

Rs.3,00,000.00                                        Rs.1,51,204.08

Rs.   43,000.00                                        Rs.   33,421.67

Rs.1,28,477.58                                        Rs.   63,259.74

Rs.2,84,000.00                                        Rs.1,99,007.79

This debit will reflect in your statement for June 2007.

proves that the complainant has paid entire amount including fore-closure charges on 21.04.2007 by way of cheques.  Thereby, the claim of Rs.77,889.20 as per Ex.A2 statement for the period from 23.03.2007 to 20.04.2007 shall be an excess because which includes the loan amount  and the entire 4 loans were pre-closed on 21.04.2007.   

12.    Further the contention of the opposite party is that all the payments were reflected in the statement of account for the credit card dated:20.05.2007 and 22.06.2007 that a sum of Rs.4,86,659.48/- was paid towards the loan and Rs.77,889.20/- was paid towards credit card due.  But on a careful perusal of Ex.A5, it reads as follows:-

Sale Date    Reference            Activity Since Last Statement     Amount (Rs.)

                    Number

 

02/05                57230                PAYMENT RECD. THANK YOU     486659.50 CR

02/05                57231                PAYMENT RECD. THANK YOU      77890.00 CR         

In Ex.A6, it is stated as follows:-

Sale Date    Reference            Activity Since Last Statement     Amount (Rs.)

                    Number

 

02/06                21117206           Paylite Top up                             63259.74

02/06                21149894           PAY LITE EMI – 36 EMI                 33421.67

02/06                21195330           PAY LITE EMI                              199007.79

02/06                41199459           ENHANCED PAY LITE EMI              151204.08 

proves that the alleged foreclosure charges are false. 

13.    Further the contention of the opposite party is that since the complainant has not submitted any letter of foreclosure, the opposite party was not able to foreclose the credit card account eventhough foreclosed the loan accounts; is not acceptable.   Because, admittedly the complainant has availed the loan through credit card and the entire loan amount was settled and foreclosed with huge fore-closure charges, it is the duty of the opposite party to close the account instead of closing the account kept pending the account and claimed various amounts by way of Ex.A6, Ex.A7 EA.10 & Ex.A12 amounts to deficiency in service as well as unfair trade practice.  The complainant has not given substantial reason for claiming such huge amounts.  Considering the facts and circumstances of the case, this Forum is of the considered view that the opposite party shall pay a sum of Rs.77,890/- with interest 9% p.a. from the date of complaint to till the date of this order with a compensation of Rs.20,000/- for mental agony and cost of Rs.5,000/- to the complainant.

In the result, this complaint is allowed in part.   The opposite party is directed to refund a sum of Rs.77,890/- (Rupees Seventy seven thousand eight hundred and ninety only) being the excess amount collected along with interest at the rate of 9% p.a. from the date of complaint (i.e.) 10.03.2008 to till the date of this order (i.e.) 11.04.2019 and to pay a sum of Rs.20,000/- (Rupees Twenty thousand only) towards compensation for mental agony with cost of Rs.5,000/- (Rupees Five thousand only) to the complainant.

The aboveamounts shall be payablewithin six weeks from the date of receipt of the copy of this order, failing which, the said amounts shall carry interest at the rate of 9% p.a. to till the date of payment.

Dictated  by the President to the Steno-typist, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the 11^th day of April 2019. 

 

MEMBER                                                                  PRESIDENT

COMPLAINANT SIDE DOCUMENTS:-

Ex.A1	23.03.2007	Copy of statement of accounts issued by the opposite party to the complainant
Ex.A2	21.04.2007	Copy of statement of accounts issued by the opposite party to the complainant
Ex.A3	25.04.2007	Copy of Fax message sent by the complainant to the opposite party
Ex.A4	18.05.2007	Copy of email sent by the opposite party to the complainant
Ex.A5	20.05.2007	Copy of statement of accounts issued by the opposite party to the complainant
Ex.A6	22.06.2007	Copy of statement of accounts issued by the opposite party to the complainant
Ex.A7	22.07.2007	Copy of statement of accounts issued by the opposite party to the complainant
Ex.A8	29.07.2007	Copy of legal notice issued by the complainant to the opposite party
Ex.A9	03.08.2007	Copy of acknowledgment card
Ex.A10	22.08.2007	Copy of Statement of accounts issued by the opposite party to the complainant
Ex.A11	30.08.2007	Copy of reply notice issued by the opposite party to the complainant
Ex.A12	23.09.2007	Copy of statement of accounts issued by the opposite party to the complainant

 

OPPOSITE PARTY SIDE DOCUMENTS:- NIL

 

 

MEMBER                                                                  PRESIDENT