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radha (freelancer)     28 July 2010

Urgent / CRedit card case

 

Sir, Kindly advice on the following:

For the purpose of clarity, details are given.

 

X filed a case in Consumer court, and the Dist. Consumer ordered the Bank to reverse all charges, supply all bills for the last 2 years so that consumer X is able to pay the principle amount, pay penalty and litigation charges to consumer X, restore the invalidated cards, remove the name of X from CIBIL, with in a month. X upon receipt of the order sent a letter to the 3 noticies i.e. local Branch Manager, Branch Manager credit cards branch at Chennai, MD at Mumbai to supply him all the bills so that he is able to pay the correct principle amount, and asked the bank to acknowledge the receipt and ensure compliance of total order of the forum.

X had asked for the terms and conditions of the card usage, policies of the bank applicable in the forum which bank did not supply, in the forum despite protest by X.

On the day one month ended, X did not receive the bills and any other letter from the bank and on his own as per his calculation deposited the cheque for the principle amount of apprx. Rs.17500.00 in local branch and obtained the receipt. Bank enchased the cheque immediately.

X received a letter with the Date exactly the last day on which one month ended, by regd.post, by a lawyer who stated he has been instructed By his client MD of the bank to reply and confirmed MD has received order of the forum and stated Bank has adjusted penalty and litigation charges in the card account and after the payment of Rs.17500.00 nothing is due to paid by X. This letter did not mention restoration of invalidated card, supply of bills for last 2 years, reversal of charges etc.

X filed the execution petition. Bank kept on obtaining dates on pretext or another. MD and Branch Manager credit cards branch at Chennai are termed X party.

Local Bank employee and layers gave a written statement in bank that old card can not restored and bank is willing to issue new card with same benefits. X has pushed hard and submitted two letters to the local branch of the bank asking to supply the card as per their statement before the next date in forum.

Interestingly bank has replied from their email to email of X that his card can not restored since his card was invalidated due to non payment of dues ( while in  the execution proceedings ban has declared nothing is due)  and advices X to pay immediately to avoid levy of further charges. X immediately wrote to official email id of MD, chairman, branch manager and quoted this email as an act of extortion. Ban has not replied. The lawyer of the bank refused to comment in writing and orally stated in forum X can file a suit of defamation. X wants to file a criminal case citing financial misappropriation. Is it possible and how.

What should be the right approach of X on this email of bank.

 

 

Now the local lawyer and another lawyer who also functions as conciliator for the bank have stated in writing to bank:

1. Since the card has been invalidated the A/c in computer has been moved from category to category Z, and old bills can not be generated, and that the bank had already supplied the bills to X. Local bank submitted an  E statement received by email from some other branch showing the amount reversed and that after all adjustments bank has to pay Rs.30.00 to X which shall be paid by DD on next date.

How can X obtain all pending monthly bills for last 2 years to study the illegal and overcharging by bank and how can X counter the above statement of bank and what is category Z of account. How can X convince the forum that there is nothing called as category Z.

2.       Since the previous card has been invalidated bank can issue new card and X shall have to sign a new  application form, supply a photo and ID proof, as per RBI rules but did not supply RBI rules. Are there any such RBI rules. How can X succeed in getting these RBI rules in forum? Should X agree to sign a new application form with printed terms and condition as part of the form or not. If he may agree then which on which terms and conditions.What are his alternatives.

 

3.       Bank has not submitted Terms and conditions, of old card, and neither copy of application signed by X for old card, and thus what were the old terms and conditions. How can X succeed in getting these? Is there any judgment available on this? How can X obtain order that old terms and conditions shall continue and for any new terms and conditions bank has to allow X to obtain legal opinion on new terms and conditions? Can X obtain order that new terms and conditions printed on application form e.g bills shall be sent by normal post only, bank shall contact on phone as and when required ( Is it a legal right of the bank to make it mandatory for the customer to write his phone numbers on application form or they shall reject it) and that bank shall have the legal right to recover their charges thru civil suite/summary suit/ file a case from any of its office and anywhere.

4.       President of forum recorded in proceedings during execution, and asked the bank to submit in writing to the name of X has been removed from CIBIL, SATYAM and any other agency.

Bank has submitted copy of CIBIL report to forum and local representative of bank (not Branch Manager) submitted written statement name from CIBIL has been removed, however X has noted his transunion score shown in CIBIL report is low. Bank stated orally they have not arranged to record the name of X in SATYAM and some other branch of the bank might have done, which they are not aware of. X knows that bank had declared X a defaulter in SATYAM. What is SATYAM. Kindly provide its address. How can X force bank to declare that they had not removed X from SATYAM despite orders.,and obtain a copy of Fresh Satyam( master card negative feedback ) report, from the bank in Forum

5.       Lawyer of the bank made an oral statement that X had abused and threatened bank employee when he submitted his written letters and obtained receipt. X protested and demanded CCTV record of the bank to substantiate the statement. President of the forum has not recorded it in the proceedings.

What should be done by X. Should he press that bank has lied during judicial proceedings. How can he prove it.

 



Learning

 4 Replies

Daksh (Student)     29 July 2010

Ms.Radha,

As it is evident from perusal of the facts of  the case the bank is not allowing the execution proceeding to fructify for one reason or other.  Make sure that whatever is being done by and on behalf of the bank strictly adhere to their manual (as it cannot bypass its manual). Whatever the bank is now saying is not allowed to plead as the execution petition pertains to what bank had to say in original proceeding.  Only thing which remains is the clarification from bank of why not complying with the direction of the forum for which reason you are within your right to "robe in the principle officer (as per the section 2 of the Companies act being Managing Director and Company Secretary to come and depose about the (contrary to the manual conduct) of  the  other officials of the bank for which reason the forum is within its right to enhance the penalty/damages amount. 

Best Regards

Daksh

radha (freelancer)     30 July 2010

 

Thanks a lot Daksh for your valuable advice.

The Bank is one of the largest in the country.

I seek advice from members of the forum also, on the various points mentioned in the submission to the forum for the help and advice,to help the consumer,and bring the case to its logical conclusion.

Next date is 03rd August.

Kindly advice on the following:

6.The consumer forum decided that bank should withdraw the name of X from CIBIL. As a consequence of this order the bank has to withdraw the name of X from all indivisual credit rating agencies including  CIBIL, SATYAM ( which is also known as Master Card Negative Feedback-MCNF) and any other where ever the bank

declared X a defaulter. The president of the Distt. Consumer Forum has recorded in the proceedings that the Bank employee/lawyer have stated that the order which came up for execution has written for CIBIL only. 

How to convince the president that as a consequence of the order  Bank has to delete from SATYAM also, and that too by a letter addressed to X and enclosing copy of the CIBIL and SATYAM report.

7.Does the issue of credit card falls under Indian Contracts Act. 

If not under which act this is covered.

This is required to check the preprinted and arbitirary terms and conditions of the bank.

Can X also dictate his terms and conditions applicable on the bank that shall  form part of the Total terms and conditions of the contract 

radha (freelancer)     31 July 2010

 

Next date is 03rd August.

Kindly advice.

radha (freelancer)     13 August 2010

The president of the additional bench of forum has retired.The case has been transfered to the other forum.

The president of this forum appears to be in the favour of the bank, and stated the case is only for execution.

The Bank did not submit the application form to be signed for issue of new card.The forum objected to the bank lawyer why the application form was not submiited to the forum, since last two dates..The lawyer stated he forgot and shall submit the form in one hour.

On the other hand Bank sent  card to the address of the complaintant and an  open and torn envelope was thrown in the  premises of the complaintant. The complaintant has informed the forum about this.There is a docket number on the envelope and as per the website of the courier the status of the despatch is shown as "Flight cancelled".

The foum has taken a statement from the complaintant on status of card delivery as mentioned above and that while the bank employess have stated full payment has been received, the MD's/central card office vide their email have stated card can not be validated due to non payment, and also that complaintant has visited the local bank office and has submitted the letters under acknowledgment asking the bank to clarify after receiving the payment how the bank is claiming non receipt of the payments.

The bank lawyer is pressing that the bank employee has stated to the forum that the payment has been received and the forum should ignore the email from central office of the bank.

 

Kindly advice


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