Consumer forum imposes Rs 1 lakh fine on SBI Credit Card

KOCHI: The Ernakulam Consumer Disputes Redressal Forum has come to the rescue of a retired bank official whose name was enlisted as ‘defaulter’ in Credit Information Bureau India Limited (CIBIL) for no fault of his.
The forum came to the rescue of Kakkanad resident K J John who was made to run from pillar to post by SBI Credit Card and payment services for sparingly using SBI credit card.As per the complaint of John, he used the credit card carefully and he paid the payments promptly as per the statement received by him.
In 2011, a customer service executive of the SBI Credit Card had telephoned John and introduced him of privilege card circle. But he declined to join the said circle, because he came to know that SBI Credit Card was cheating the card holders by misrepresenting that enlistment in the circle was free. But once the enlistment is done, they are charging hefty amounts and fleecing the card holders.
Despite his refusal to join the said circle, a fancy watch along with a travel ticket was sent to the complainant enlisting the complainant in the privilege card circle without his consent. John sent the travel ticket and fancy watch back to SBI. Even after giving back the articles, the SBI Credit Card had charged Rs 6,067 for the travel ticket and fancy watch. John had sent a request to the officer of the SBI card in 2012 requesting to make his opening balance zero and close his credit card membership.
But again he was treated badly by the firm as the credit balance in the account of John shot up to Rs 12,749.28 without having done any transaction. When he brought the issue before the officials, the firm threatened him stating that his name would be enlisted to the CIBIL as defaulter.
John approached the banking ombudsman, who ordered in his favour directing the bank to reverse the charges if the complainant was able to furnish documentary proof. Despite all these, the firm did not comply with the said order and demanded John to pay Rs 7,509 on or before June 28, 2013 as against the earliest demand of Rs 12,749.
Later, his account was zeroed and classified as dues written off. But SBI Credit Card enlisted John as a defaulter in CIBIL. The action of the firm forced him to approach the forum.
In its reply, the firm has said the forum does not have the jurisdiction to decide the issue. The complainant himself had given consent for the privilege card circle offer. It was after receiving consent of John the privilege circle kit was delivered to him. He did not send the kit back as claimed.
At the same time, the firm could not prove its claim before the forum, which even went to the extent of defining the words, ‘written off’, ‘settled’ and ‘closed’. Forum ordered the SBI Credit Card to pay Rs 1 lakh towards compensation for the unfair trade practice.
Cherian K Kuriakose, president of the forum said, “We adjudged Rs 1 lakh as exemplary compensation on the firm. Since the complainant is an ex-employee of the SBI, he is aware of the dubious activities involved in it”.
When TOI approached an official of SBI Credit Card office functioning in Ravipuram for their version, they refused to respond.