Chandigarh District Commission Holds HDFC Bank, Phoenix ARC Liable For Illegally Demanding Outstanding Balance For Unauthorized Credit Cards

Brief Facts:

The Complainant's credit card and account no. from HDFC Bank Ltd. were registered in her name with a current debt balance of Rs. 72,927/-. This account was purportedly opened by HDFC Bank on 05-01-2021. She discovered that another credit card and account no. from Phoenix ARC Private Limited (“Phoenix ARC”) was also in her name showing a current balance of Rs. 1,17,432/-. This account was alleged to have been opened by Phoenix ARC on 31-08-2017.

The Complainant contacted both HDFC Bank and Phoenix ARC by phone to inquire about the persons responsible for making payments or the payment methods. She requested them to withdraw their demands and correct her CIBIL score which was adversely affected. Despite her repeated requests, HDFC Bank and Phoenix ARC did not provide satisfactory responses. The Complainant stated she never used or applied for any credit card facilities from HDFC Bank and Phoenix ARC. She also didn't receive any communication or OTPs regarding these cards.

The Complainant approached HDFC Bank and Phoenix ARC multiple times to resolve the issue and required them to issue a No Objection Certificate (NOC). However, no action was taken by the HDFC Bank and Phoenix ARC. She contended that these acts constituted deficiency in service and unfair trade practices. Feeling aggrieved, the Complainant filed a consumer complaint in the District Consumer Disputes Redressal Commission-II U.T. Chandigarh (“District Commission”) against HDFC Bank and Phoenix ARC. HDFC Bank and Phoenix ARC didn't appear before the District Commission for the proceedings.

Observations by the District Commission:

The District Commission noted that the Complainant neither used nor availed the credit card facilities from HDFC Bank and Phoenix ARC at any time. Further, she didn't receive any communication or OTP regarding the restructuring of the credit cards.

The District Commission noted that HDFC Bank and Phoenix ARC didn't take any action to withdraw the illegal demands made against her. Further, HDFC Bank and Phoenix ARC did not appear before the District Commission to provide any rebuttal or defence against the claims made by the Complainant.

Consequently, the District Commission directed HDFC Bank and Phoenix ARC to withdraw the illegal demands amounting to Rs. 72,927/- concerning the first credit card and the demand of Rs. 1,17,432/- related to a second credit card. Furthermore, HDFC Bank and Phoenix ARC were instructed to issue an NOC to the Complainant and to rectify her CIBIL score by coordinating with the competent authorities without delay.

Case Title: Paramjit Kaur Pasricha vs HDFC Bank Ltd and Anr.

Case No.: CC No. 539/2023

Advocate for the Complainant: Shri Mohit Singla

Advocate for the Opposite Parties: None

Date of Pronouncement: 11.07.2024

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