Observing that failure to investigate disputed transactions, wrongful debiting of accounts, arbitrary recoveries and unjustified reporting to credit agencies amount to deficiency in service and unfair trade practice under the Consumer Protection Act, the District Consumer Disputes Redressal Commission, Chandigarh, has directed Punjab National Bank (PNB) to refund all amounts illegally deducted from a customer’s savings account towards a disputed credit card liability.
The complaint was filed by Chandigarh resident Manoj Bajaj, who had obtained a credit card from PNB’s Sector 23 branch.
According to the complaint, on January 18, 2016, Bajaj received a call from a person claiming to be an employee of the bank’s credit card division. The caller informed him that reward points accumulated on his credit card were about to expire and that an amount of Rs 10,000 had been credited against those points. He was also told that the bank was sending him a complimentary gift and was asked for his shoe size.
Bajaj stated that he did not suspect any fraud as no confidential card details were sought or disclosed during the conversation. No amount was debited from his card on that day.
However, on January 20, 2016, he received a parcel containing a pair of shoes, a belt, a wallet and sunglasses. The same day, he received an SMS informing him that Rs 7,109 had been debited from his credit card account.
The complainant alleged that he had been informed that the gift would be adjusted against his reward points. Instead, the amount was debited from his credit card without his consent. He maintained that he had neither requested the gift nor authorised any purchase. No OTP, confirmation message or transaction authorisation was sought from him.
Bajaj further alleged that despite raising objections, the bank failed to resolve the matter and subsequently declared his account a non-performing asset (NPA) on May 26, 2018, without issuing any notice or providing him an opportunity to be heard. He also claimed that the bank adversely reported his credit history to CIBIL, affecting his creditworthiness and reputation.
The bank, on the other hand, argued that the complainant had been regularly using the credit card facility and was liable to clear the outstanding dues reflected in the monthly statements.
After hearing both sides, the Commission observed that the bank had failed to place on record any transaction log, merchant authentication details, signed delivery acknowledgement or other documentary evidence to establish that the complainant had voluntarily entered into the transaction.
The Commission held that in the absence of evidence proving the complainant’s consent, the bank could not fasten liability upon him. It further observed that the bank’s failure to investigate the disputed transaction and its subsequent recovery actions amounted to a clear deficiency in service and unfair trade practice.
Holding the bank liable, the Commission directed PNB to reverse the disputed debit transaction of Rs 7,109 along with all consequential interest, penalties, late payment charges and other levies imposed on the account. It also ordered the bank to refund all amounts recovered from the complainant’s savings account towards the disputed liability, close the credit card account after reconciliation and issue a No Due Certificate (NDC).
The Commission further awarded Rs 10,000 to the complainant towards compensation for harassment and litigation expenses.
