Punjab

Ludhiana

CC/21/536

Deep Preet Singh - Complainant(s)

Versus

Standard Chartered Bank - Opp.Party(s)

Harpreet Singh Adv.

12 Jan 2024

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, LUDHIANA.

                                                Complaint No:536 dated 26.11.2021.                                                         Date of decision: 12.01.2024.

 

Deep Preet Singh aged 49 years son of Sh. Inder Mohan Singh, R/o. 390-CX, Model Town Extension, Ludhiana.                                                                                                                                                     ..…Complainant

                                                Versus

Standard Chartered Bank, Crescenzo, C-38/29 ‘G’ Block, Bandra Kurla Complex, Bandra East, Mumbai-400051.

Second Address:- 19, Rajaji Salai, Chennai-600001.                                                                                                                         …..Opposite party 

Complaint Under Section 35 of the Consumer Protection Act, 2019.

QUORUM:

SH. SANJEEV BATRA, PRESIDENT

SH.  JASWINDER SINGH, MEMBER

SH. MONIKA BHAGAT, MEMBER

 

COUNSEL FOR THE PARTIES:

For complainant             :         Sh. Harpreet Singh, Advocate.

For OP                           :         Exparte.

 

ORDER

PER JASWINDER SINGH, MEMBER

1.                 Shorn of unnecessary details, the facts of the complaint are that the complainant got issued a credit card No.5543 7441 7000 6536 from the OP. In the year 2005, an amount of Rs.6991/- was pending in said credit card account and after mutual discussions, the complainant paid Rs.5000/- as full and final settlement on 04.03.2006 vide receipt No.SCB-1260504. The complainant stated that on 23.11.2019, he purchased a new TATA Harrier Car from Dada Motors, Ludhiana for which he applied loan on 24.11.2019 from Oriental Bank of Commerce, Mode Town, Ludhiana. He received SMSs on 25.11.2019 from the said bank that his case is under consideration and will be informed shortly. However, on 27.11.2019, he received an Email from the said bank regarding declining of his loan proposal as his CIBIL Score was not satisfactory. On enquiry, the complainant came to know that his car loan was declined as CIBIL report was showing outstanding money of more than Rs.1,00,000/- towards the OP rather receipt of Rs.5000/- as full and final settlement and there was no outstanding amount against the complainant. The complainant further stated that he sent an Email dated 13.12.2019 to the OP to which the OP replied vide Email dated 21.12.2019 stating that they have reversed the entire outstanding amount in his card account and they have also arranged to update the status of the card as blank. The OP further stated that the balance will be updated as Zero in CIBIL records soon. According to the complainant, this is an admission on the part of the OP of their mistake and rectified the same. The complainant further stated that the Oriental Bank of Commerce offered him car loan of Rs.14 Lakh to be payable in 84 installments of Rs.22,172/- each @ 8.50% per annum i.e. total Rs.18,62,448/- but the OBC refused to sanction the loan which constrained the complainant to take car loan from TATA Motors to the tune of Rs.14 Lakh payable in 84 installments of Rs.22,885/- each @9.48% per annum i.e. total Rs.19,22,340/-. Thus the complainant claimed to have suffer doss of Rs.59,892/-. The act and conduct of the OP amounts to deficiency in service which has caused physical and mental agony and loss of repudiation to the complainant. In the end, the complainant has prayed for issuing direction to the OP to pay Rs.59,892/- to the complainant on account of loss caused to him and also to pay compensation of Rs.1,00,000/- and litigation expenses of Rs.25,000/-.

2.                Upon notice, none appeared on behalf of the OP despite service and as such, the OP was proceeded against exparte vide order dated 16.05.2022.

3.                In support of his claim, the complainant tendered his affidavit Ex. CA in which he reiterated the allegations and the claim of compensation as stated in the complaint. The complainant also tendered documents Ex. C1 and Ex. C2 are the copies of text messages, Ex. C3 is the copy of Email dated 27.11.2019, Ex. C4 is the copy of customer copy of cheque collected receipt, Ex. C5 is the copy of Email dated 13.12.2019, Ex. C6 is the copy of Email dated 21.12.2019, Ex. C7 is the copy of screen shot of interest rate for car loan enquiry, Ex. C8 is the copy of contract details dated 21.12.2020, Ex. C9 is the copy of amortization table, Ex. C10  is the copy of Cardex-II regarding repayments and closed the evidence.

                   During the course of proceedings, the complainant filed application for permission to lead additional evidence, which was allowed vide order dated 31.05.2023 subject to cost of Rs.500/-. The complainant closed the additional evidence after tendering Ex. C11 i.e. copy of screen shot of EMI calculation.

4.                We have heard the arguments of the counsel for the complainant exparte and also gone through the complaint, affidavit and annexed documents produced on record by the complainant.

5.                Due to absence of the OP, the uncontroverted facts that emerges from the pleadings and evidence produced on record by the complainant that the complainant, a credit card holder paid an amount of Rs.5000/- as full and final settlement on 04.03.2006 vide receipt Ex. C4. In the last week of 2019, when the complainant approached the Oriental Bank of Commerce, Branch Model Town, Ludhiana for availing loan facilities for the purchase of New Tata Harrier Car, the bank declined the advancement of loan as the CIBIL score (Credit Information Bureau India Limited) was found to be unsatisfactory. On 13.12.2019, the complainant sent an Email Ex. C5 to the OP, which reads as under:-

“This is to bring to your kind notice that I was having a credit card of your bank with number 5543 7441 7000 6536 on the name of Deep Preet Singh, address 309 CX Model Town Extension, Char Khamba Road, Ludhiana.

The last statement in my record is of dated 18 Oct 2005 in which outstanding is Rs.6991.00. Credit limit mentioned on the statement is cancelled. Due to unstable economic condition of mine I was unable to pay the dues timely and after your regular calls a sum of Rs.5000.00 was settled to clear the dues which was agreed by me and paid on 4.3.2006with receipt No.SCB-126504 mentioned FULL & FINAL SETTLEMENT     in capital letters and even after the above mentioned date I did not receive any statement or call from your bank regarding this matter.

Now after about fourteen years I needed or applied for a car loan for which I contacted my bank but was denied due to only one reason that my cibil report showed a balance of Standard Chartered Bank more than one lack which is written off. Regarding this I was never ever contacted by any Standard Chartered Bank employee neither then in 2005 nor till now.

I just want to know how is there any outstanding when I have settled the dues with a full and final amount, regarding this I have also made a complaint to National Consumer Helpline whose complaint number is 1790662.

Please do the needful to clear this issue as soon as possible.”

 

6.                In response to Email Ex. C5, the OP responded  vide Email Ex. C6 whereby it was admitted on its part that the entire outstanding reflecting in the card of the complainant has been reversed and the card has been permanently invalidated in its record. They further informed the complainant that the status of CIBIL is being updated. The operative part of Email Ex. C6 reads as under:-

“We confirm that your card ending 6536 has been permanently invalidated in our records.

We had reversed the entire outstanding reflecting in your card account.

As on date, there is no outstanding balance payable by you towards your card ending 6536.”

 

7.                It is evident that the complainant did not pay anything to the OP but on mere representation of the complainant, the CIBIL score was rectified by the OP. It is strange that once the OP had settled the amount with the complainant, it was its duty to send  the requisite information for updation of CIBIL as Zero in the records of Credit Information Bureau India Limited. So certainly there is deficiency in service on the part of the OP which entitles the complainant for compensation.

8.                The other contentions of the complainant that he has to obtain loan at higher rate of interest and suffered a loss of Rs.59,892/- is untenable. Perusal of documents shows that TATA Motors advanced the loan of Rs.14,00,000/- even before the CIBIL score was rectified and updated in records. In the given set of facts and circumstances, it would be just and appropriate if the OP is burdened with composite costs of Rs.20,000/-.

9.                As a result of above discussion, the complaint is exparte partly allowed with direction to the OP to pay a composite cost of Rs.20,000/- (Rupees Twenty Thousand only) to the complainant within a period of 30 days from the date of the receipt of the copy of this order. Copies of order be supplied to parties free of costs as per rules. File be indexed and consigned to record room. 10.             Due to huge pendency of cases, the complaint could not be decided within statutory period.

 

 

(Monika Bhagat)          (Jaswinder Singh)                   (Sanjeev Batra)                Member                     Member                                  President   

 

Announced in Open Commission.

Dated:12.01.2024.

Gobind Ram.