Unauthorized Debit Despite Cancellation Of Booking, Central Kolkata District Commission Holds SBI Credit Card Services Liable

Brief Facts:

The Complainant was a credit card holder of SBI Credit Card Services (“SBI Cards”) with a credit limit of Rs. 70,000/-. On November 21, 2017, he booked a hotel room at Hotel Comfort Inn President in Ahmedabad through Booking.com using his credit card. However, he soon found a better offer at another hotel and cancelled the booking at Comfort Inn President, receiving instant acknowledgement from the hotel. Later, he received an SMS from SBI Cards indicating that Rs. 82,600/- was debited from his credit card to the hotel which exceeded his credit limit by Rs. 12,600/-. Shocked by this transaction and the lack of prior intimation from SBI, the Complainant immediately contacted customer service and declined the credit card. He also submitted a transaction dispute form the same day.

Despite submitting the necessary documents and communicating with SBI through emails and phone calls, the Complainant did not receive a resolution. SBI informed him that no transaction was showing in its system and that the dispute could not be resolved as it was beyond the stipulated period of 17 days from the transaction. The Complainant argued that his reference number was within 17 days and alleged that SBI intentionally mishandled his complaint for financial gain. After receiving no relief from SBI, the Complainant issued a legal notice. Feeling aggrieved, the Complainant filed a consumer complaint in the District Consumer Disputes Redressal Commission-II, Kolkata (West Bengal) against SBI Cards.

In response, SBI Cards argued that the Complainant was bound by the cardholder agreement, which included an arbitration clause stipulating that any disputes should be resolved by a sole arbitrator appointed by SBI. It also contended that all terms and conditions were provided to the Complainant in a welcome kit before any transactions were made. It argued that the version of Booking.com was necessary for proper adjudication, and the Complainant failed to include Booking.com as a party in the case. SBI Cards claimed that the Complainant's failure to provide necessary documents like a credit note and merchant's confirmation letter hindered their ability to investigate the disputed amount.

Observations by the District Commission:

The District Commission noted the Complainant provided satisfactory evidence of the disputed transaction and cancellation. Despite this, it noted that SBI Cards did not fulfil its duty as a service provider to resolve the issue. The District Commission held that SBI Cards' actions constituted a gross deficiency in service by debiting the amount from the Complainant's account despite the acknowledged cancellation and the credit limit being exceeded.

Therefore, the District Commission ordered SBI Cards to credit the disputed amount of Rs. 82,600/- to the Complainant's account and exempt him from any interest calculated on this amount. Additionally, SBI Cards was directed to compensate the Complainant with Rs. 20,000/- and cover litigation costs of Rs. 10,000/-.

Case Title: Snehasish Chakraborty vs SBI Cards and Payments Services Pvt. Ltd. and Ors.

Case Number: CC/126/2019

Date of Pronouncement: 26th June 2024