Bengaluru: HDFC Bank told to pay compensation for harassment

BENGALURU: The District Consumer Disputes Redressal Forum directed HDFC Bank to compensate its customer for allegedly harassing and torturing him, to collect insurance premium in monthly instalments with interest, through his credit card, despite his instructions to deduct the entire premium in its entirety, from his SB account.

Partly allowing the complaint filed by C Jayarama, the Forum ordered the bank to pay compensation of
Rs 35,000, including Rs 25,000 towards damages and Rs 10,000 towards cost of litigation expenses, to Jayarama, a resident of Yeshwantpur.

The Forum said: “We are of the opinion, if HDFC Bank is ordered to pay whatever interest, penal interest, late fee and penalty it has collected from the complainant from August 12, 2014 onwards regarding the payment of Rs 22,307 through credit card by converting monthly instalments, it would meet the ends of justice along with interest at the rate of 12 per cent per annum.”

However, it also said that HDFC Bank is entitled to recover Rs 22,307 from the SB account of Jayarama.
Jayarama alleged that the bank had intentionally converted his credit card payment into EMIs, which amounts to unfair trade practice, and that he was subjected to torture by the recovery agent calling him every day to pay the balance amount and threatening him.

The Forum observed:

“Deducting the amount every month with interest and threatening the complainant to pay the entire amount naturally put the complainant under mental tension and harassment for which HDFC Bank has to compensate him and we quantify the same at Rs 25,000.” 

Case History

The complainant had taken Health Suraksha Policy for Rs 4 lakh for a premium of Rs 20,734 and was also provided another policy, Sarv Suraksha Policy, a personal accident policy for premium of Rs 1,573. The premium was paid through his credit card. HDFC Bank converted the credit card payment into EMIs, adding 1.1 per cent interest, against his instructions.