Telangana State Commission Holds SBI Liable For Deficiency In Service For Collecting Excess Amount From Customer Without Proper Justification

Brief Facts of the Case

The complainant, a credit card holder with State Bank of India/bank, paid Rs. 26,250 in six EMIs for an outstanding amount of Rs. 24,710.66. Additionally, the complainant paid Rs. 5,531 on the bank's insistence. The bank later debited Rs. 7,979 from the complainant's savings account without consent. The complainant filed a complaint before the District Commission and alleged the bank collected Rs. 7,341 in excess and sought a refund. The District Commission allowed the complaint and directed the bank to pay a compensation of Rs. 15,000 with 9% interest and s. 5,000 for litigation costs. Aggrieved by the District Commission's order, the bank filed an appeal before the State Commission of Telangana.

Contentions of SBI

The bank contended that the complaint is not maintainable and dismissed the deficiency in service. The bank maintained that the complainant purchased goods through a credit card and sought payment in 6 EMIs, which was changed to 12 EMIs, and this change was intimated through E-statement. The complainant stopped payments, resulting in an amount of Rs. 7,979.35 auto-debited. Late fees and charges of Rs. 2,573 have been refunded to the complainant. The bank pleaded for dismissal of the complaint with exemplary costs.

Observations by the State Commission

The Commission observed that the complainant purchased an item for Rs.24,710.66 and requested repayment in six EMIs, but the bank allowed repayment in 12 EMIs. The complainant paid Rs.26,520 in six installments, exceeding the purchase amount. EMI payments include interest, which reduces if paid in fewer installments. The commission highlighted that the bank failed to explain why Rs.7,979 was auto-debited or disclose the interest charged on the purchase. Despite claims of initiating a refund, no clear evidence was provided to justify the excess amount collected. The Commission found that the lower forum properly evaluated the evidence and dismissed the appeal, upholding the District Commission's order.

Case Title: The CEO, SBI Card Vs. Mr.Abdul Khader

Case Number: F.A. No. 168/2019