BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II, U.T. CHANDIGARH

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Complt.  Case No:1206 of 2009

Date of Institution:   24.08.2009

Date of  Decision :   26.05.2010

Pankaj Malhotra s/o Sh. N.N. Malhotra, #246, Indian Express Society, Sector 48, Chandigarh.

 ……Complainant

V E R S U S

Standard Chartered, Credit Card Branch, SCO No.137-138, Sector 9-C, Madhya Marg, Chandigarh, through its Branch Manager.

.…..Opposite Party

CORAM:          SH.LAKSHMAN SHARMA                         PRESIDENT

                    MRS.MADHU MUTNEJA                        MEMBER

PRESENT:     Sh.Rohit Khullar, Adv. for the Complainant.

                   Ms.Kanwal S.Walia, Adv. for the OP.

PER MADHU MUTNEJA, MEMBER

                The present complaint has been filed by Pankaj Malhotra – Complainant, seeking closure of his credit card account, as well as compensation from the OP for mental tension, harassment deficiency in service and unfair trade practice.

                The case made out by the Complainant is as under.

1]             An executive of Standard Chartered Credit Cards has approached the complainant for issuance of Credit Card Facility in his name.  Accepting the offer, the complainant had submitted the relevant documents and received the Credit Card from the OP.  After this the complainant had used the credit card regularly and paid the bills as and when raised.  In July, 2007, he was surprised to receive bill for Rs.3999/- on account of one time special fees for issuance of Gold Card, for which he had never made any request.  He had also not received this Credit Card. Thereafter, the Executives of the OP started harassing him and threatening him to pay the overdue amount. Despite protests from the complainant, the OP’s are still demanding the amount along with interest thereon. Hence, the Complainant has filed the present complaint, seeking relief against the OPs.

2]             The OP, in its reply have admitted that Complainant was issued Master Gold Credit Card in the month of June, 2005, with a credit limit of Rs.43,000/-.  In July, 2007, the Complainant had wished to convert the existing Master Gold Credit Card to Titanium Credit Card with one time special fee of Rs.3999/-. Hence, the amount was debited to his account in July, 2007. As these charges were to be paid by the Complainant, the bank was constrained to remind the Complainant again and again to make payment of dues.  As on September 11, 2009, an amount of Rs.22,720.93Ps. was due from the complainant.  The bank is however willing to resolve the matter amicably and had offered to consider reversing the charges. They have prayed for dismissal of the complaint as well as asked for a direction to the complainant to clear his outstanding bill against the Credit Card.

3]             We have heard the learned counsels for both the parties and perused the evidence led by both parties in support of their contentions.

4]             Under the circumstances mentioned above, the complainant is not willing to carry on with his Credit Card.  The OP Bank is willing to reverse all charges on the Credit Card of complainant but is not willing to pay any compensation to him.

5]             In this regard, we need to refer to the guidelines issued by the Reserve Bank of India – RBI/2005-06/211, DBOD.FSD.BC.49/24.01.011/2005-06, November 21, 2005 to All Commercial Banks/NBFCs (Excluding RRBs).  Under Item No.5, which deals with Protection of Customer Rights and Right to Privacy, they have laid down as under:-

“5.(i) Right to privacy –

a. Unsolicited cards should not be issued. In case, an unsolicited card is issued and activated without the consent of the recipient and the latter is billed for the same, the card issuing bank/NBFC shall not only reverse the charges forthwith, but also pay a penalty without demur to the recipient amounting to twice the value of the charges reversed. 

b…………

c. The card issuing bank/NBFC should not unilaterally upgrade credit cards and enhance credit limits. Prior consent of the borrower should invariably be taken whenever there are any change/s in terms and conditions.”

6]             In view of the above guidelines, the OP Bank will have to not only reverse the charges on the Credit Card of the complainant but also pay a penalty amounting to twice the value of the charges reversed.

7]             This complaint is therefore allowed.  The OP is directed to cancel the Credit Card of the complainant  and reverse all bank charges thereon till date and also pay twice the value of the charges reversed as penalty. 

8]             The parties may bear their own costs.

9]             This order be complied with within 45 days from the date of receipt of its certified copy, failing which the OP shall pay the decretal amount along with interest @12% per annum from the date of order till the date of realization.

10]            Certified copies of this order be communicated to the parties, free of charge. After compliance file be consigned to record room.

Announced

26.05.2010                                                                      Sd/-

(LAKSHMAN SHARMA)

PRESIDENT

                                                              Sd/-

(MADHU MUTNEJA)

MEMBER

‘Om’