Consumer Commission directs Corporation Bank to refund €13679.18 to a customer who lost the sum to a pickpocket in Paris
The RBI has issued clear guidelines in respect of the liabilities of a credit card holder who lost the card or the same has been misused by other persons or by the unscrupulous method.
BENGALURU: The Consumer Commission has directed the Corporation Bank branch of Rajajinagar to refund the amount of Rs 1,00,556-08 (13679.18 Euros) drawn by unscrupulous persons, using the credit card which was pickpocketed in a metro train at Paris, along with payment of compensation and litigation cost to one Vijay Basutkar, 70-year-old from Mahalakshmi Layout in the city.
The Bengaluru Rural and Urban Additional District Consumer Disputes Redressal Commission directed the Corporation Bank to refund the sum which was paid by the consumer to the bank, to the complainant along with interest at 4 percent from the date of transaction on December 30, 2019, till payment of the entire amount.
The Commission comprising president HR Srinivas and Member SM Sharavathi also directed the bank to pay a sum of Rs 10,000 towards damages for causing mental agony and strain, and further Rs 5,000 towards litigation expenses to the complainant Basutkar, who is an engineer by profession.
The Commission noted that the complainant lost the card due to pickpocketing in a metro train in Paris. A copy of the FIR is produced which mentions that his wallet was consisting of 700 Euros and 3 credit cards and a driving license. After the incident, the complainant rushed to the police station in Paris and made a complaint at 9 pm, though the said pickpocket had occurred around 5 pm. That itself cannot be a ground for the Corporation Bank to deny the benefits which are available to the complainant on the ground of lost card being misused by unscrupulous persons, the Commission said.
"Though it is stated by the Bank regarding the liabilities as per the Corporation Bank credit card rules, it is pertinent to note here that the RBI has issued clear guidelines in respect of the liabilities of a credit card holder who lost the card or the same has been misused by other persons or by the unscrupulous method. When this is taken into consideration, even assuming for the moment the complaint regarding the loss of his credit card due to pickpocket at the metro station around 5 pm and reporting the same to Police at 9 am, third party breach where the deficiency lies neither with the bank nor with the customer but lies elsewhere in the system and the customer notify the bank within 3 workings days of receiving communication from Bank regarding the unauthorized transaction the liability of the customer is zero", the Commission said.
Taking this into consideration, the Commission said that the complainant within 3 days has apart from sending an email to the bank, made a request in writing to the home branch. When such being the case, his liability will be zero and further clause 12 of the notification, the entire burden of proving customer liability in case of unauthorized electronic banking transaction shall lie on the bank, the Commission added.