Holding HDFC Bank Ltd responsible for deficiency in service by keeping a hold on funds of a customer's savings account that resulted in bouncing his instalment of car loan, the national consumer disputes redressal commission (NCDRC) directed the lender to pay Rs50,000 compensation for mental agony and harassment and Rs5,000 as litigation costs.
In
an order earlier this month, the NCDRC bench of justice Ram Surat Ram Maurya (presiding member) and Bharatkumar Pandya (member) says, "... it is proved that although HDFC Bank was insisting the respondent to deposit Rs34,259 but was not in position to give the details of the transactions. Before giving the details of the transaction, HDFC Bank, vide notice dated 2 May 2014, kept on 'hold on funds' his savings bank account, which resulted in a cheque bounce on 5 May 2014 of the car loan instalment. Findings of the Tamil Nadu state consumer disputes redressal commission that HDFC Bank committed deficiency in service in not supplying the details of the transaction of credit card does not suffer from any illegality. The appeal has no merit and is liable to be dismissed."
Chennai-based Jai Kumar had a savings account in HDFC Bank. He also obtained a credit card and car loan from the Bank. HDFC Bank employees called Mr Kumar to deposit some amount to use his credit card. He requested them to send a message on his mobile about the minimum amount due so that he could pay immediately. However, he was repeatedly called by staff of HDFC Bank, who asked him to deposit Rs34,259 for the credit card.
On 14 April 2014, Mr Kumar sent a letter to HDFC Bank requesting to provide details of the amount he spent on his credit card, the total amount he paid and the total amount with details of principal and interest debited by the bank on his credit card.
Meanwhile, as his instalment for the car loan was due on 5 May 2014, Mr Kumar deposited Rs5,000 on 3 May 2014 into his bank account while his client transferred Rs10,000, taking the balance in the account to Rs19,127.
However, instead of providing details, HDFC Bank sent him a letter on 2 May 2014 informing him about the hold on funds in his account due to non-payment of the demanded Rs34,259 for his credit card dues.
Mr Kumar then issued a legal notice to HDFC Bank. Without prejudice to his right, he deposited Rs4,259 towards the overdue of his credit card. When he contacted the Bank to release the hold on his account, he was again told to pay the entire amount of Rs34,259. Mr Kumar again deposited Rs4,500 and Rs1,500 towards dues on his credit card. However, funds in his account remained on hold.
Meanwhile, on 17 May 2014, HDFC Bank transferred Rs19,141 from his savings account to the credit card. In a letter dated 23 May 2014, the Bank informed Mr Kumar that it required 15 days to furnish detailed information as he requested. Meanwhile, his cheque for the car loan instalment bounced since there was a hold on funds in his savings account.
Mr Kumar subsequently filed a complaint before the state commission.
HDFC Bank contended that vide notice dated 2 May 2014, it kept a 'hold on funds' on Mr Kumar's savings bank account due to non-payment of the demanded amount of Rs34,259 in his credit card. "Due to the 'hold on funds' on his savings bank account, the instalment of car loan payable on 5 May 2014 could not be withdrawn and his instalment payment was bounced. When Mr Kumar did not respond, the amount of his savings account was transferred towards the credit card dues. Even after transferring money from the savings account of the complainant, an amount of Rs17294.56 was still payable in the credit card account and Rs11857 towards the car loan instalment. All the transactions were done as per procedure and there was no deficiency in service on the part of the Bank."
After hearing the parties, the state commission, in its order on 14 March 2022, held that HDFC Bank failed to supply the details of the credit card transactions done by Mr Kumar, even after demand through a letter dated 14 April 2014. It says, "Without supplying the details, HDFC Bank vide notice dated 2 May 2014, kept on a hold on funds on his savings bank account, which amounts to deficiency in service on the part of the HDFC Bank."
Aggrieved by the order, HDFC Bank approached NCDRC.
After considering the arguments of the parties and examining the record, the bench of justice Maurya and Mr Pandya observed that the state commission's findings that HDFC Bank committed deficiency in service in not supplying the details of the transaction of credit card, does not suffer from any illegality. "The appeal has no merit and is liable to be dismissed."
(First Appeal No587 of 2022 Date: 3 September 2024)
