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2006 (1) CPR 28 (NC)
NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION,
NEW DELHI
K.S. Gupta, Presiding Member; Mrs. Rajyalakshmi Rao, Member
H.S. Arya & Ors.—Complainants
versus
CEO, SBI International Card & Anr.—Opp. Parties
Original Petition No. 398 of 2002
Decided on 16-9-2005
Counsel for the parties :
For the Complainant : Mr. Joy Basu,
Advocate with Madhurendra, Advocate.
For the Opp. Parties :Mr. Ravi Birbal, Advocate.
Headnote:Consumer Protection Act, 1986 — Section 2(1)(g) — Banking — Credit
Cards — Deficiency in service — Payment of educational examination fee for ‘ECFMG’ through credit card — OP declined payment in spite of availability of credit limit — Withholding of relevant information by Bank — Deficiency in service, proved — OP to pay Rs. 96,649/-
the examinations fee and Rs. 50,000/- for mental agony.
Facts of the case : (A) The complainant no. 1 (C1) is the primary card holder and complainant no. 2 (C2) is the additional card holder of SBI International Credit Cards. The complainants decided to use the credit card for making payment of educational examination fee for ‘ECFMG’, a foreign based organization. The complainant no. 2 has completed his stage 1 and stage 2 and was preparing for stage 3. The required fee for ECFMG was for US $ 1220 which is equivalent to Rs. 58,560/-.
(B)When the transaction for US $ 1220 was presented on 5-11-2001 for payment, the same was denied as credit card not honoured. On the denial the complainants contracted the ‘Helpline’ who advised to keep sufficient credit balance for the amount exceeding Rs. 56,000/- (Rs. 56,000/- is the credit limit granted to complainants). The complainants then deposited Rs. 6,964/- when the bill for US $ 1220 was presented for payment again the same was declined and not honoured by Ops. Finally the C2’s application was rejected by the ECFMG. Aggrieved by the same, a complaint was preferred alleging deficiency in service.
(C)The Commission observed that some of the transactions which are shown in the notice sent by Ops were never reflected in the monthly statements and this informa-
tion was not known to the complaiantns at all till the
reply is given. This is within the knowledge of Ops alone which itself is deficiency in service. How can a bank withhold relevant information to their client especially when their computer programme is perfected to the last paise detail.
(D)The Commission found that there was deficiency in service on the part of Ops in withholding information from the complaint due to which credit limit had been denied in an inhuman manner and for wrongly relying on the computer mechanism without giving any credibility to the facility of ‘help line’. The Ops were directed to pay Rs. 96,649/- and also Rs. 50,000/- for mental agony. The complaint was partly allowed.
Result : Complaint is partly allowed.
Mrs. Rajyalakshmi Rao, Member — The present petition is filed by Complainant No.1, Shri H. S. Arya alongwith his son Shri Amit Arya for deficiency in service by opposite parties, Chief Executive Officer, SBI International Card,
O.P. 1 and Manager-Customer Services, SBI International Card, O. P. No.2, New Delhi. Brief facts of the case are :
It is the case of the Complainant No.1 that he was approached by O.P.,
the SBI International Credit Card for
taking an international credit card. The Complainant was enrolled as an SBI International Credit Card holder in July 2001 and another additional credit card in the name of his son Shri Amit Arya was also issued. The Complainants used this facility for payment of educational examination fee and other processing charges for “ECFMG” (Educational Commission for Foreign Medical Graduates,), which is a foreign based organization with its headquarters at Pennsylvania (USA) which conducts educational examinations for medical specialization. In order to pay fee and other processing charges for “ECFMG” Complainants considered it appropriate to make payment by way of International Credit Card as the payments were to be received in dollars. Amit Arya successfully completed stage 1& stage II exams and was preparing for stage III exam for which fee is to be paid within time. The required fee for “ECFMG” was for US $1220 on account of examination fee for ‘CSA’ (Clinical Skills Assessment Exam) which was sought to be paid and in Indian equivalent amount of Rs. 58,560/- @ Rs. 48/- to US $ 1 at the relevant time.
Complainants went though the
card holder agreement and found that Clause 3.4 provides for an event where transactions could be made in excess of the credit limit at any particular point in time, that Clause 3.4 also stipulates
that in the event if such outstanding on the card account exceeds the credit
limit, the card holder will be charged an over limit fee at the prevailing rate: and the card holder must also repay the excess immediately. The Complainants were prepared to pay the over limit fee as also repay the excess amount immediately as soon as it was charged to his credit card and reflected in the subsequent statement as per the conditions
of the card holder agreement (Enclosure: Annexure A).
The above transaction for US $ 1220 was presented on 5.11.2001 for collection of payment of the said transaction but payment to “ECFMG” was declined by the opposite parties with the remarks “Credit card not honoured” which reached Shri Amit Arya on 28.11.2001. Consequently, Shri Amit Arya’s application for “ECFMG” was rejected.
Being shocked at this that the said transaction was declined by SBI International Credit Card the Complainant enquired on the very next day, i.e. 29.11.2001 from opposite parties “Helpline” as to the reasons why the transactions was not honoured by SBI. Complainants’ contended that “Helpline” informed him that it was declined due to some technical error and was advised that the bill may be presented again and was assured that the authorization for the payment of Rs.58,560/- would be made by them irrespective of the Complainants having a credit limit of Rs. 56,000/-. The Complainant was also advised by the “Helpline” to keep sufficient credit balance for the amount exceeding Rs. 56,000/- so that the total available credit on the card should exceed the amount of Rs.58,560/- in order to avoid any possibility of the “ECFMG” transaction being declined.
As per advise of the opposite parties, the Complainants maintained sufficient credit balance as is evident from the credit card statement dated 21.11.2001 wherein addition to the credit of Rs.56,000/- another column total amount due Rs. 5,882.50 was shown as credit. The SBI Credit Card statement showed credit as on 21.11.2001 to be Rs 56,000/- plus Rs. 5,882.50 which comes to Rs. 61,882.50 exceeding the total transaction amount of Rs.58,560/- (Annexure-B). On the advise of the Complainants “ECFMG” presented the bill for collect
