Order-13.
Date-27/05/2015.
Complainant Birendra Kishor Dutta Roy by filing this complaint has submitted that complainant has been holding a Credit Card for over 15 years issued by Standard Chartered Bank for purchasing commodities and while issuing the card the long following years the bank promised to award reward point against each transaction using the card and redemption of the earned reward points and declared different alluring announcements in public media.
Company allured on their Site about lucrative offers against reward point so he used the credit card more frequently than required with the hope of redemption of the rewards by the said bank. Complainant contacted the bank over their Phone Banking system as there was no other way to contact with them and demanded redemption of the accumulated reward points but failed to get any response. Thereafter the process was repeated several times having the same fate and on much persuasion by the complainant, the said bank sent a bill in which the number of reward point accumulated has not been redeemed at all and at the same time demanded some amount from the complainant as unpaid amount which was beyond the knowledge of complainant. But the said bill did not elaborate anything more.
After receipt of the said bill, complainant had traumatic experiences several times when he tried to make payment through the said credit card and being refused on all occasions as the bank blocked the card without issuing any prior notice to the complainant causing tremendous mental agony, pain and disrepute and harassment.
Complainant being frustrated by the behaviour of the said op bank sent a letter by registered post with A/D to op on 07.11.2014 demanding value of reward points along with interest and in reply the bank sent a letter dated 19.11.2014 to the complainant acknowledging receipt of the demand letter but did not make any payment. In the above circumstances complainant prayed for redressal for releasing the value of 13,619 reward points and interest for delaying the redemption of the said reward points and further for mental pain and agony.
On the other hand op by filing written statement submitted that main criteria to facilitate redemption of reward points is that the Credit Card needs to be Active Status and the look at the statements would indicate that complainant has been defaulting in his payments on account of which there was a huge outstanding in the complainant’s card account and due to non-payment of his dues, the card account had been invalidated in records of Bank making the card thus inactive. On account of inactive status, the reward points could not be redeemed by the complainant and the outstanding in the complainant’s card account ending 9819 as on 25.03.2014 was Rs. 62,711.43 paisa and since the month of May, 2014, the complainant has completely stopped effecting payments towards the card dues and due to non-payment of the card dues, the complainant’s card account had moved to written-off base of the Bank with prior intimation to the complainant and on account of the status of the card the reward points earned by the complainant had lapsed.
It is specifically mentioned that as per Contract Clause 15.8 of Credit Card Terms and Conditions and the Customer terms states that customer may not use or redeem any bonus points if the status of all customers’ accounts are not normal or current or if a card holder is in default or has otherwise not complied with the terms of banking agreement.
Further as per Clause 15.8 of the 360 degree Rewards Terms and Conditions – in the circumstances, cardholder will not be eligible under the programme if card account has been blocked, classified as blocked by the bank, suspended, terminated or closed. Complainant was well aware of those Clauses and it is binding both the bank and op for which complainant is guided by the said regulations and terms and conditions.
Fact remains that when the complainant requested the op Bank for redeeming his reward points by letter dated 07.11.2014, the op Bank tried to contact with the complainant but the complainant was not reachable. So, op Bank sent an interim response dated 21.11.2014 to the complainant. Since the complainant was not reachable, the op Bank sent the final response dated 03.12.2014 to the complainant informing that due to non-payment of his card dues, the outstanding amount had been moved to written off base of the bank w.e.f. 27.10.2014 and the reward points earned by the complainant had lapsed.
Moreover the rate at which reward points were redeemed is dynamic and varied from item to item Clause 2.4 of the 360 degree rewards terms and conditions and complainant has failed to explain how and under what norms, he converted 13,619 reward points into a sum of Rs. 1,36,190/-. So, the claim of the complainant converting 13,619 reward points into Rs. 1,36,190/- is absurd, illegal, bad in law and there is no question of reward points into money value and in fact the entire complaint is baseless for which the complaint should be dismissed.
Decision with reasons
On an in depth study of the complaint and written version and also considering the terms and conditions and other regulations of the Credit Card Agreement, it is found that the credit card holder will not be eligible under reward points if the complainant’s card account has been blocked, classified as blocked by the bank, suspended, terminated or closed as per clause 1.5. From the credit card statement it is found that portion of the card was dissatisfactory and there is a specific warning in block letters at the bottom of the statement “your account is overdue, this may lead to temporary suspension of card facility and in statement dated 25.06.2014 it is mentioned that account is temporarily suspended.
But fact remains that complainant himself submitted that the credit card statement dated 25.04.2014 wherefrom it is found that the account is overdue and he was directed to regularize the said credit card, otherwise facilities as given may be permanently withdrawn. But anyhow complainant has not stated that he has not received that statement, on the other hand complainant received the said statement which is marked as Annexure-B but has failed to prove that there is no outstanding.
Moreover considering the operation of the credit card for more than 15 years, complainant never stated that he is not aware of the terms and conditions. But on the contrary he is legally stopped to challenge the rules and regulations of the reward points and etc. Moreover complainant has admitted in his reply to question no.11 made by the op that he had no basis to calculate the valuation of his reward points and ignored the basic rules that Reward Points cannot be valued in terms of cash and when that is the fact then the claim of the complainant is no doubt baseless but at best the accumulated reward point invariably ought to have been redeemed and if such prayer would be made by the complainant time to time.
Anyhow after considering the entire materials on record, it is found that op issued two loans dated 19.11.2014 and 21.11.2014 and complainant received the same. Further after considering the reward point request, we find that reward points are awarded on the basis of the transactional values and the bank at its own discretion offers certain gift vouchers or gift products in lieu of the reward points, but the value of such gift vouchers or gift products are generally around 50 paisa per point though it is always variable. Those reward points are never available for conversion into cash or against repayment of dues and no doubt in the present case, considering that principal of law; complainant is not entitled to any convertible cash or repayment of dues against this dues, against credit card.
Admitted position is that against credit card up to 25.06.2014, balance was Rs. 9,288.33 points. When it was Rs. 7,929/- in the statement on 25.05.2014 and on 25.04.2014, the outstanding balance was Rs. 6,973/- and truth is that in the month of April-2011 previous balance was Rs. 62,712.40 paisa, complainant paid Rs. 59,000/- and thereafter outstanding balance was Rs. 6,973/- and also considering the loan statement dated 25.06.2014, it is found that his card was temporarily suspended for not clearing the dues and for which complainant though cleared accumulated reward points for redemption to the extent of 13,619. But till 25.04.2014 complainant did not file any such application before the op for redemption of the reward points.
Another factor is that this accumulation is made for long period and when this card was temporarily suspended when the complainant appeared before this Forum. But scope was there on the part of the complainant only to clear Rs. 6,973/- outstanding balance in the month of April-2014 or May-2014, in that case the entire amount shall be satisfied and complainant shall have to get benefit of the reward points as accrued in the meantime that is 13,619. But without adopting such procedure nowadays the customer appears before this Forum to get huge amount as compensation and that has become a disease in the mind of the so called consumers.
Whatever it may be after considering the entire materials on record and also considering the argument as advanced by the Ld. Lawyer of the op, we have gathered that bank has no vices to harass the complainant. Bank is always ready to redeem that reward point 13,619 if complainant pay the balance amount and balance amount is Rs. 8,933/-. But we find that practically in the month of April-2014, balance is Rs. 6,973/-. But in the month of May, June 2014 they have already charged late charges, service tax and the figure has been enhanced and considering the entire materials on record we find that the matter can easily be disposed of by passing such order when bank is willing to give the redemption value in respect of accumulated reward point accrued in favour of the complainant if complainant pays the outstanding amount.
Further it is found that complainant had his scope to get such benefit if he pays the balance amount of Rs. 6,973/-. Adopting such simple procedure, complainant appeared to this Forum with a hope to get a decree as if the Consumer Forum is here and there to give dole to the consumers but anyhow he appeared before this Forum without discharging his duties as customer to the bank and in such premises, we are disposing of the matter on merit by allowing the complaint in part and by directing the op to release the redemption value of accumulated reward points to the complainant after receiving Rs. 6,973/- as balance amount treating the entire account is closed and no further interest, service charge etc. shall be charged against this account of the complainant and accordingly the op may cancel the credit card account of the complainant. If complainant deposits that amount in that case op shall have to handover redemption of reward points so far accrued i.e. 13,619 in favour of the complainant.
Accordingly this complaint succeeds in part.
Hence, it is
ORDERED
That the complaint be and the same is allowed on contest against op but without any cost.
Op is directed to receive Rs. 6,973/- and complainant shall have to deposit it forthwith to the op bank and along with a prayer for redemption of the accured reward points of 13,619 and after receipt of the same, op shall release the reward point to the complainant within one month from the date of this order failing which the op shall have to pay penal damages to the extent of Rs. 300/- per day till full satisfaction of the decree and if it is collected, it shall be deposited to this Forum and on payment the credit card shall be treated as finally closed.
Op bank shall comply the order very strictly on receipt of the said amount from the complainant and on compliance of the order, shall report to this Forum within one month from the date of this order failing which for non-compliance of the Forum’s order, penal proceeding u/s 27 of C.P. Act 1986 shall be started against the op for implementation of the order and even further penalty and fine shall be imposed.
