DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II

Udyog Sadan, C-22 & 23, Qutub Institutional Area

(Behind Qutub Hotel), New Delhi-110016

Case No.662/2009

Smt. Neelam Grover

W/o Shri J. L. Grover

C-114, G.F. Inder Puri,

New Delhi-110012                                                       ….Complainant

Versus

The Regional Manager

Standard Chartered Bank

Jeewan Bharti Bldg.

Parliament Street,

New Delhi-110001                                                   ….Opposite Party

                                                Date of Institution        : 09.09.09          Date of Order                : 14.05.19

Coram:

Sh. A.S. Yadav, President

Ms. Kiran Kaushal, Member

ORDER

Ms. Kiran Kaushal, Member               

1. Briefly put, the complainant Neelam Grover had got a credit card issued from Standard Chartered Bank hereinafter referred to as OP. The complainant was regular in paying her dues. The complainant was shocked on receiving monthly statement of account dated 15.12.06 in which Rs.99/- was charged for the cash payment made by the complainant on 06.12.06.
   1. On further enquiry, it was brought to her knowledge that OP had been charging unwarranted and illegal charges every month for last one year without the knowledge of the complainant; as the monthly statement was not being received by the complainant. Complainant requested time and again for waiver of illegal charges being charged, for the cash payment and late receipt of payment if made by cheque even before the due date for the last many months. But OP paid no heed to her request which ultimately resulted into surrender of the complainant’s card.
   2. It is averred that at the time of surrender the complainant had made lumpsum payment of Rs.9,500/- by cheque after deducting all the illegal charges being charged by the OP for 7-8 months towards full and final payment. It is further stated that the complainant made the said payment to OP after talking to the customer care office stating that only if OP agrees to this payment they should encash the said cheque, which was encashed by OP.
   3. It was after lapse of two years that the complainant was shocked to receive a call on 11.06.09 for payment of Rs.12,251/- which was stated to be outstanding against the complainant as per the records of OP and the same had to be paid within two days otherwise harsh and coercive methods was to be used against the complainant. After numerous requests the recovery agent of OP told the complainant that the matter could be settled at Rs.3500/-, if the complainant agrees, which was not acceptable to the complainant.
   4. Thus, being aggrieved the complainant approached this Forum with the prayer to direct OP not to harass and threaten the complainant and close the file of the complainant as nothing is payable by the complainant. Additionally OP be directed to pay damages of Rs.50,000/- for mental agony, harassment and Rs.10,000/- towards litigation cost.
2. OP resisted the complaint inter-alia stating that the complainant was regularly using the credit card and was also paying the dues. It is submitted that the outstanding amount of the credit card as per statement of account dated 15.02.07 was Rs.13,081.09 and payment of Rs.9,500/- was made by the complainant which was not full and final. An amount of Rs.3,180.38 was still outstanding in her account.
   1. It is next stated that the complainant had failed to pay even minimum payment due after February, 2007 and therefore apart from service tax, late charges as well as interest was levied as per the rules and regulations.
   2. It is further submitted that despite repeated requests and reminders by OP complainant did not make the minimum payment due and as a result her card was temporarily suspended in May, 2009 and the same was intimated to her by statement of account dated 15.05.07.
   3. It is next submitted that the complainant failed to regularize her account and her card facility was cancelled in July, 2007 and as per the statement of account dated 27.07.08 an amount of Rs.9,119.47p was still outstanding in her credit card account. The complainant  approached the OP for reversal of financial charges and inspite of the same being genuine OP bank showing its bonafide intention reversed the financial charges in the complainant’s account as is evident from statement of account dated 15.03.07.
   4. It is next stated that OP never made any offer of Rs.3,500/- for settlement. On the other hand it is submitted that OP has every right to recover its legitimate dues. Hence OP prayed for dismissal of the complaint as OP has neither indulged in any unfair trade practice nor is deficient in service.
3. Complainant has filed rejoinder to the written statement of OP reiterating the averments made in the complaint. 
4. Complainant has filed evidence by way of affidavit.  On the other hand, affidavit of Sh. Shefaulah Khalid, Legal Officer has been filed on behalf of OP.
5. Written arguments have been filed on behalf the parties. 
6. Having heard the arguments of the Ld. Counsels of the parties and going through the record carefully it is observed that the complainant was regular in making payment of her bills since 2003. It was only in 2006 when the complainant through the statement of account got to know that Rs.99/- was charged for the cash payment made by the complainant with the cash counter of OP and late receipt of payment if made by cheque even before the due date for last many months without giving any prior notice to the complainant, the complainant opted to surrender her credit card.
7. OP has faltered in not supplying the statement of account to the complainant as per the clause ‘billing statement periodicity and mode of sending’ of the terms and conditions of the credit card. The relevant portion of the same is reproduced as under:

“Billing Statement Periodicity and Mode of Sending:

Statement will be sent by post once every month for accounts with a balance of more than Rs100/-. For accounts with a balance of less than Rs100/-, a statement will be issued when a new transaction reflects in the account. Also, in case a cardholder has a credit card balance in his account, a statement will be issued to him only if his credit balance exceed Rs250/-. Cardmembers with address registered outside India will not receive any statements. The statement will be sent through E-mail if the Cardmember has registered for E-statements. The Cardmember can also check his statement on the Standard Chartered website if he has registered for NetBanking.”

The back-page of statement of account very clearly states ‘billing statement periodicity and mode of sending’ which was never sent to the complainant.The said averment is not controverted by OP.

8. It is next noticed that the complainant had surrendered her credit card on 04.02.07 and made payment of Rs.9,500/- vide cheque to OP towards full and final settlement. The relevant portion of the letter dated 04.02.17 written by the complainant to OP is reproduced as under:

“With reference to above it is to inform you that my self is no more interested in your aforesaid card and the same is being surrendered for cancellation with immediate effect.

I am also enclosing a cheque of Rs.9500/- of even date in full and settlement of all dues till date in regard to my said card after deducting all illegal charges, interest being charged by you for the last one year, as informed to me by you concern officer on phone.

It is requested that the said cheque is being sent to you with a condition that the same be encashed if it is accepted to you and after encashment please send me No Dues Certificate also for my records.”

OP in its pleadings have been denying of any illegal charges being charged by them. However, the statement of account dated 06.04.07 shows that fee for cash payment at branch i.e. Rs.99/- was reversed in the complainant’s account. The two entries of Rs.99/- being reversed to the complainant’s account itself shows that OP had been charging the amount arbitrarily or unilaterally without informing the complainant. OP has further failed to show any rule or regulation under which such charges were being made by OP for several months and why only the two entries were reversed?

9. Further we are of the opinion that OP has indulged in unfair trade practice as although the cheques for payment of due were being given in advance by the complainant but the cheques were enchased by OP on clearing dates and the complainant was made to pay late payment charges on the same. Further we have no plausible reason to believe that the complainant who had been paying regularly since 2003 would certainly stop making payments in 2007 without any valid reason.
10. In light of the discussion above, we hold OP guilty of deficiency in service and unfair trade practice. Hence, we allow the complaint and direct OP to close the file of the complainant/zeroise the credit card account of the complainant and issue ‘No Dues Certificate’ to her. Additionally, OP is directed to pay Rs.15,000/- for causing mental agony and harassment to the complainant  including litigation expenses with interest @ 6% p.a. from the date of filing of the complaint till realization within a period of 2 months from the date of receipt of copy of this order. Failing which OP shall become liable to pay Rs.15,000/- with interest @ 9% per annum from the date of filing of the complaint till realization.    

Let a copy of this order be sent to the parties as per regulation 21 of the Consumer Protection Regulations.Thereafter file be consigned to record room.   

Announced on 14.05.19.