Credit Card Misuse: Bank Asked to Pay Rs. 5K to Customer

BANGALORE: When banks issue credit cards, it is their duty to see that it is not misused by other people. If any transaction  related to that credit card takes place, the customer will be liable only if the transaction is done by him, The Consumer Disputes Redressal Forum, Bangalore Urban District, has held.

The forum recently allowed a complaint filed by 27-year-old Pallav Deb Barman alleging that he was asked by a public sector bank to pay for an alleged illegal transaction done using his credit card.

Barman alleged that he received three messages on his mobile phone stating that the transaction worth Rs 82,019 has taken place from on his credit card in the week hours on April 13, 2013.

After the massages, he immediately called the Credit Card Customer Care section and informed them about the illegal transaction and asked them to block the card.  Barman also contended that the bank did not investigate the dispute and they did not waive the disputed amount. Hence, he filed a complaint with the forum on August 28, 2013.

The bank contested the complaint and contended that  keeping the credit card safely is the primary responsibility of the credit card holder. It also submitted that the complainant has miserably failed to keep his credit card safely and  also failed to keep the PIN number secretly and thus, he himself has allowed the misuse of the card.

The forum, while allowing the complaint, observed, “The very fact that immediately after the use of the card, the complainant raised objection. It shows that he was not a party to that transaction. Hence, the contention of the complainant is prima-facie acceptable. The burden of proof shifts on to the bank to prove that the transaction has been made by the complainant himself and by using the credit card.”

“It is the duty of the bank to see that the credit card is not misused by any other person. If any such transaction has been taken place relating to that credit card, the complainant will be liable only if the transaction is done by him. Hence, unless it is shown by the bank that the transaction was done by the complainant himself, the complainant cannot be held liable, even if any transaction is said to have taken place,” observed the forum.

The forum has now asked the bank not to claim any amount from the complainant and asked to pay Rs 5,000 as compensation.

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