Bank penalised for placing customer on CIBIL list
A local consumer court on Monday penalised Kotak Mahindra Bank for wrongly putting a customer's name on the Credit Information Bureau (India) Limited (CIBIL) defaulter list and failing to issue no dues certificate in spite of settlement of loan account.chandigarh Updated: Apr 29, 2013 19:14 IST
A local consumer court on Monday penalised Kotak Mahindra Bank for wrongly putting a customer's name on the Credit Information Bureau (India) Limited (CIBIL) defaulter list and failing to issue no dues certificate in spite of settlement of loan account.
Sameer Monga of Sector 38-D had taken a personal loan from the bank which was settled under the one-time settlement scheme of the bank.
Pankaj Chandgothia, counsel for the complainant, contended that the bank itself had issued a letter dated December 29, 2010, to the complainant directing him to deposit Rs 65,000 on or before December 30, 2010, in full and final settlement of his loan account.
Accordingly, the complainant deposited the amount on December 30.
Chandgothia contended that the bank was guilty of deficiency in service as in spite of loan clearance, the bank did not issue the no dues certificate. The bank compounded its deficiency by displaying the name of the complainant as a defaulter on the CIBIL website.
According to Chandgothia, “Wrongly displaying the name of the complainant on the CIBIL website as a defaulter amounts to defaming and harassing him. Also, he is unable to avail any other credit benefit from any other source, as his name is blacklisted.”
Court member Madanjit Kaur Sahota said the bank did not appear before the forum in spite of notice. Therefore, the assertions of the complainant were accepted as they have gone non-rebutted.
The court headed by president PL Ahuja ruled that as a result of deficiency of the bank, the complainant was facing lot of harassment and mental agony.
The forum directed the bank to issue no dues certificate to the complainant and get his name deleted from the CIBIL list. The bank has also been directed to pay Rs 15,000 as compensation and cost of litigation. If the compensation is not paid within 30 days, the bank shall pay an additional fine of Rs 50,000.