Consumer Forum Comes Down Heavily on Bank's Unfair Practice
The Dharwad District Consumer Disputes Redressal Commission has delivered a strong reprimand to HDFC Bank for a blatant case of service deficiency. The forum found the bank guilty of issuing three credit cards to a customer from Hubballi who had applied for only a single card. This action, deemed purely for the bank's profit, has resulted in significant penalties.
The Hubballi Customer's Ordeal
The complainant, Kishore Desai of Hubballi, had a straightforward request. He approached the HDFC Bank branch at Deshpande Nagar seeking the issuance of one credit card. However, the bank processed three separate cards in his name without his consent. The situation worsened when the bank began pressuring Desai to pay service charges and other expenses for all three cards, amounting to a total demand of Rs 72,328 for the unwanted cards.
In his formal complaint, Kishore Desai stated he made repeated requests to the bank, informing them he needed only one card and asking for the cancellation of the extra two. Despite his multiple appeals, the bank failed to act, leaving him with an unnecessary financial burden and considerable mental distress.
Commission's Verdict: A Clear Case of Unfair Trade
After a detailed hearing, the bench comprising Commission Chairman Ishappa Bhute and Member Vishalakshi Bolashetty made strong observations. They noted that while Kishore Desai was a legitimate customer, issuing three cards against a request for one was completely unjustified. The commission held that this conduct was driven by a profit motive and constituted a clear deficiency in service under the Consumer Protection Act.
Furthermore, the commission ruled that demanding payment for the unsolicited cards amounted to an unfair trade practice. The bank's actions were seen as an imposition on the consumer for its own benefit.
Relief and Penalty Ordered
In its final order, the consumer commission directed HDFC Bank to take immediate corrective action and provide compensation:
- Immediately cancel the two additional credit cards issued to Kishore Desai.
- Refrain from recovering the disputed amount of Rs 72,328 related to those cards.
- Pay Rs 50,000 as compensation to the complainant for the inconvenience and mental agony caused.
- Pay Rs 2,000 towards litigation costs incurred by Desai.
This ruling serves as a significant reminder to financial institutions about ethical consumer dealings and reinforces the power of consumer forums in protecting individuals from predatory practices. The case underscores the importance of banks obtaining explicit consent and not burdening customers with unsolicited products and services.
