The Chennai North District Consumer Redressal Commission has directed a private bank, Standard Chartered, and a non-banking financial company (NBFC), Shaha Finlesase, to pay a total compensation of Rs 1.05 lakh to a customer who was scammed by them. The customer, M Ganesh Nagarajan, had availed a credit card facility with the bank in 2006 and had a due of Rs 44,780. The bank had offered to settle the amount for Rs 34,000, which Ganesh paid in several installments.
However, despite paying the full amount, the bank assigned the right to recover the amount to the NBFC, which claimed that there was still a due. The NBFC made several communications to Ganesh, threatening him to pay the amount or face consequences. Ganesh tried to communicate with both parties, but they failed to listen to his plea. The NBFC even claimed that there were dues for the past 17 years and demanded Rs 58,859.62 to be paid.
The bank had also given a report to CIBIL, stating that the current outstanding was Rs 80,90,644, which affected Ganesh’s CIBIL score and prevented him from availing any benefits. Ganesh issued a legal notice, but the NBFC failed to respond. The bank responded, seeking details of payment, which Ganesh provided.
The consumer commission, headed by president D Gopinath, found that both the bank and the NBFC were deficient in providing basic services. They directed both parties to close Ganesh’s account, issue a No Objection Certificate (NOC), and update the CIBIL report. The commission also directed them to pay jointly or severally Rs 1 lakh as compensation for deficiency in banking service, mental agony, pain, and sufferings, and Rs 5,000 towards litigation costs within two months.
The commission’s order is a victory for Ganesh, who had been harassed by the bank and the NBFC for 17 years. The order highlights the importance of consumer protection and the need for banks and financial institutions to provide transparent and fair services to their customers. The commission’s decision also serves as a warning to other banks and financial institutions to adhere to consumer protection laws and regulations.