HDFC Bank Ordered to Pay Compensation for Holding Funds in Customer’s Account
The National Consumer Disputes Redressal Commission (NCDRC) has ruled in favor of a Chennai-based customer, Mr. Jai Kumar, in a case against HDFC Bank Ltd. The NCRDC directed the bank to compensate Mr. Kumar with Rs50,000 for mental agony and harassment, along with Rs5,000 as litigation costs. This decision stems from HDFC Bank’s failure to provide details of credit card transactions and placing a hold on funds in Mr. Kumar’s savings account, leading to the bouncing of his car loan installment.
The dispute arose when HDFC Bank employees repeatedly contacted Mr. Kumar to deposit Rs34,259 for his credit card, despite his request for details of the minimum amount due. Despite Mr. Kumar’s efforts to obtain information about his credit card transactions and payments, HDFC Bank sent a notice on 2 May 2014, informing him of the hold on funds in his account due to non-payment of the demanded amount.
Mr. Kumar’s subsequent attempts to resolve the issue, including depositing money and issuing a legal notice, were met with the bank’s insistence on the full payment of Rs34,259. This situation culminated in the bank transferring funds from Mr. Kumar’s savings account to the credit card, leading to a further delay in providing the requested transaction details. As a result, Mr. Kumar’s car loan installment bounced, prompting him to file a complaint with the state commission.
The state commission’s ruling in favor of Mr. Kumar was upheld by the NCDRC, which deemed HDFC Bank’s actions as a deficiency in service. The bank’s contention that all transactions were conducted as per procedure was dismissed, and the NCDRC affirmed the state commission’s findings.
In light of these developments, HDFC Bank’s appeal was deemed to have no merit, and the bank was instructed to compensate Mr. Kumar as per the NCDRC’s ruling.