Standard Chartered Bank to pay Rs 55K to customer as damages

Standard Chartered Bank has been ordered by a consumer forum to pay Rs 55,000 as damages to a customer for harassing him by raising a demand of over Rs 90,000 for payment against credit card dues and putting his name on the defaulters' list even though he had returned the card.

The District Consumer Forum (Central) gave the order on a complaint of North West Delhi resident Ajit Kumar that the bank had sent a bill demanding over Rs 90,000 and put his name in the defaulters' list in 2008 even though he had returned the credit card, unused, in 1999.

The three-member panel of the forum, headed by President B. B. Chaudhary, observed the demand made by the bank was “unfounded” and by not removing Kumar's name from the list of defaulters, it had caused “deficiency in service“.

“The demand of the bank for use of the credit card is unfounded. By keeping the name of the complainant in the list of defaulters, the bank has caused further deficiency in service,” said the forum.

“No-due' certificate

The forum ordered the bank not to call the complainant for any payment relating to the credit card and to remove his name from the defaulters list and also issue him a ‘no due certificate'

The forum also agreed with Kumar's contention that he had returned the card in February 1999, without using it for any cash transactions.

“We believe the case of the complainant that the credit card was returned to the bank in February 1999 and that the complainant had not used the credit card for any transaction,” the forum said.

It directed the bank to “to pay Rs 50,000 as compensation for causing harassment, pain and mental agony” and Rs 5,000 as litigation charges to Kumar.

Kumar contended that on receiving the bill of Rs 22,600.47 in March 1999, he had informed the bank about the misuse of the card and that the amount was withdrawn illegally, and also sent a legal notice to the bank in April 1999.

Two legal notices

He further argued that later in 2008 the bank sent him a bill for Rs 93,789.84 and put his name on the defaulters list, against which he again sent a legal notice in May 2008. Despite the two legal notices, the bank took no action to remove his name from the defaulters' list, he added.

Standard Chartered Bank, on the other hand, contended that the complaint filed in the month of December 2008, was barred by time.

The forum, however, rejected this contention saying that the complaint is not barred by limitation since the bank raised the demand for payment due in December 2008.

The forum also refused to accept bank's contention that Kumar had not returned the credit card, saying that the bank had received all the letters sent by Kumar, informing about his return of the card and the misuse of the same.