C.C. No.141/2022

Sriram Chandra Sahoo,

S.o.- Late Basudev Sahoo,

At present- Qtr. No.JB/10,

Madhuban, Paradeep,

Dist.- Jagatsinghpur,

Permanent Address:-

At- Basudev Niswa, Lalasahi,

P.O./P.S./Dist.- Jagatsinghpur.                             ……………. Complainant

                                                                                            (Versus)

1. The Chief Manager, Union Bank of India,

Bank Street, Paradeep,

Dist.- Jagatsinghpur- 754142.

2. The Branch Manager, Union Bank of India,

At/P.O./Dist.- Jagatsinghpur- 754103.

3. Asst. General, Credit Card Division,

Reay Road, Mumbai.

4. Mr. DVS Krishna,

Senior Manager, Union Bank of India,

Credit Card & MAB Department,

Union Bank of India Building,

Hyderabad- 500095.…..… Opposite parties

For Complainant………..Mr. R. Mohanty & Associates

For O.P. No.1 & 2………..Mr. B. Mohapatra & Associates

ORDER BY HON’BLE PRESIDENT- MR. P.K. PADHI:

                                                                                          JUDGMENT

            Complainant has filed the consumer complaint U/s.35 of Consumer Protection Act, 2019 seeking cancellation of Credit Card bearing No.4726143000006299, direct to return Rs.13,49,330/- in A/c No.600105010000105 with 12% interest and pay compensation Rs.1,00,000/- towards mental agony, Rs.50,000/- for cost of litigation and held the opposite parties jointly and severally liable.

            The complainant is executive customer with the opposite parties bank since last 35 years and having savings bank account numbers. Opposite parties are providing banking serve in the district of Jagatsinghpur in their respective capacity on receiving respective charges from the complainant for the same and the opposite party No.3 had allegedly issued the Credit Card. The opposite party No.1 took some signature for issuance of Credit card without any specific knowledge on the same from the complainant but misrepresenting the facts. Neither the complainant had any intention to avail the Credit Card facility nor has he ever used the same. The opposite parties in the mean time never bothered to intimate the complainant regarding the issuance of the Credit Card bearing No.4726143000006299 nor bothered to intimate the bills being incurred due to use of the said Credit Card.

            The complainant has another account with opposite party No.2, the branch at Jagatsinghpur town vide A/c No.600105010000105 as the proprietor/owner of Kanchan Automobiles. The said with the opposite party No.2 was converted to NPA since 31.3.2021 and to close the NPA account the complainant paid total due of Rs.29,73,897.84 paisa on 06.4.2022 by dispossessing his collateral property. But shockingly Rs.13,49,330/- was debited from the account of the complainant on 24.4.2021 without the knowledge of the complainant by used of the said Credit card which has not been received by the complainant and of course there is no question of use of the said Credit Card at all.

            Notice to opposite parties was sent by Regd. Post. Opposite parties No.1 & 2 has filed their written version stating as under;

            It is true that the opposite party No.2 in the mean time issued the credit card in favour of the complainant according to his application and so also the opposite party No.2 opened an account in his name at Jagatsinghpur Branch and the said account was converted to NPA since 30.6.2017 and to close the NPA account, the complainant paid total of Rs.29,73,897.84 paisa on 06.4.2022. But the complainant taken a plea the same amount while deposited by dispossessing the landed property and Rs.13,49,330/- was debited from the account of the complainant when the complainant did not pay the Credit card dues to the bank. So the opposite party legally used the Credit Card for encash of debt amount.

            Opposite party No.4 received the Regd. Notice but take no steps, hence set ex-parte.  

            The Credit Card bearing No.4726143000006299 was valid from 05/2013 to 05/2016 but interest has been calculate even after 05/2016, whereas the card has been used upto 04.4.2014 and the outstanding balance as on 31.5.2014 was Rs.2,02,463.63 paisa. It is also stated by the complainant that as per extent guideline of RBI the loan account on credit facility to be identified/classified as NPA, if the accounts remain out of order or interest is not serviced for more than 90 days thus credit card issued to complainant ought to have been classified as NPA w.e.f. 31.8.2014 but the opposite parties violating the guidelines of RBI has charged service charge, over limit fees, service tax, GST, late payment fees etc. from 31.5.2014 to 25.3.2022 increasing outstanding amount from Rs.2,02,463.63 paisa to Rs.14,19,399.20 paisa and thereby excess of Rs.12,16,935.57 paisa has been charged to complainant.

            From the aforesaid sequence of events, it is crystal clear that the credit card was valid upto May, 2016 (05/2016) and used upto 04.4.2014 and outstanding balance as on 31.5..2014 was Rs.2,02,463.63 paisa and the credit card/account should have been treated as NPA after 90 days as such we are satisfied that the opposite parties have illegally charged interest on complainant after NPA period after expiry of validity of ca rd and imposed various taxes as discussed above as such there is deficiency in service and unfair trade practice by opposite parties. 

            We therefore direct the opposite parties to treat the Credit Card as/Account as NPA as per guide line and treat the Credit card bearing No.4726143000006299 to be invalid w.e.f. 06/2016 (June, 2016) as Credit card was valid upto 05/2016 (May, 2016) and direct the opposite parties to calculate the amount afresh and intimate correct amount to be paid as per law. We impose cost of Rs.20,000/- for mental agony and Rs.10,000/- towards cost of litigation. The opposite parties are jointly and severally liable to pay the cost and compensation to complainant. With the aforesaid observation and direction the consumer complaint is disposed of.          

            Pronounced in the open Commission on this 23^rd February,2024.