Forum orders bank to refund fraudulently made transaction

The Gautam Budh Nagar district consumer court levied a penalty on a private bank for using money in a customer’s savings bank account to pay for a fraudulent credit card transaction

The Gautam Budh Nagar district consumer court levied a penalty on a private bank for using money in a customer’s savings bank account to pay for a fraudulent credit card transaction.

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The customer, and complainant in the case, Noida resident Vikas Govil said that had received an SMS in 2009 that said a payment of $828.18 ( ₹38,493.81) was made on his credit card. Govil said that he informed the bank of the fraud and blocked his card.

But the payment was successful. Later, the complainant said, the bank deducted the amount from his savings account without his authorisation.

The bank defended itself saying that there was no deficiency of service and that it had followed all rules.

The court. however, saw otherwise.

“The commission comprising president Anil Kumar Pundir and member Daya Shanker Pandey held that there was deficiency of service and directed the bank to pay ₹38,660 to the complainant along with 9 percent interest from the date of filing of the complaint. The bank will also refund the ₹ 2,700 to the complainant in lieu of full and final settlement. It will also pay ₹50,000 for harassment and mental agony besides ₹1000 towards legal expenses. The order was delivered last week,” Gunjan Sharma, representative District Consumer Court Advocates Association said.