"Can bank apply BL to FD of the customer if a case is already being heard by DCDRF for CC dues?"
Banks have a right to exercise lien under section 171 of the Indian Contract Act against the dues from constituents/customers. However, the banks cannot exercise lien over the personal account of a customer on the ground that money was due to the bank in another account where he acts in a different capacity, if there is no agreement to that effect}
Brief history of the matter is given below:
A is CC holder of a leading Pvt Sector bank since 7 years and has been paying on time without a single default. Bank has not provided copy of CC application form signed by customer and is not supplying the same despite many representations. Customer is sure that 7 years back he has not signed any agreement that bank can exercise lien on other accounts.
--Bank defaults on service and customer lodges’ complaint in writing from customer care to the highest level of VP-Customer Services Credit Cards and MD.
--bank does not resolve the complaint as customer is adamant on getting reply and apology in writing. Bank is not willing to beg apology in writing. Bank resorts to unethical practices e.g. bank has been supplying CC bills by courier and stops courier. Customer lodges complaint on non receipt of bill in time and escalates the complaint. Bank does not supply the bill. Customer blocks the payment and states bill shall be paid if bank supplies the bills at his doorstep. Bank's collection/recovery agents resort to coercion/threats and customer lodges police complaint, and also with MD of the bank.
Bank dispatches its Zonal Collection Head to the o/o lawyer of customer to apologize in verbal and this man promises in verbal to supply all bills and revalidate the CC. Nothing happens. Customer lodges consumer complaint. While, the hearing is in progress in DCDRF, bank resorts to another malpractice. It creates banker's Lien on FD of the customer and notice of BL reaches customer on the last day mentioned in the notice. Hence lien is created.
Lawyer of the customer issues legal notice to the bank. Bank starts calling customer on phone from various locations and vacates the lien. Customer takes premature payment of all FD's and suffers loss of interest.
Other query is :
“Can customer claim this amount from bank’s MD or has to go to DCDRF again? What are the chances of getting payment of loss suffered? Kindly provide, if available, some suitable decisions from National Commission or State Commissions”
DCDRF decides in favor of the customer and orders the bank to waive off all charges and supply valid CC. Customer gets CC by execution petition.
Again bank resorts to unethical practices and does not activate the CC. Customer lodges written complaint and bank activates the CC. Bank again does not supply the bill. Customer lodges complaints in writing. Bank does not supply the bills despite repeated reminders in writing and invalidates the CC.
Can the customer demand severe punishment/penalty as bank has committed same offense like a habitual willful offender?
What should be the strategy?