Telangana State Commission Holds SBI Liable Deficiency in Service Collecting Excess Amount from Customer Without Proper Justification (Consumer Case)
The complainant, a credit card holder with State Bank of India, paid Rs. 26,250 in six EMIs for an outstanding amount of Rs. 24,710.66, along with additional Rs. 5,531 at the bank’s insistence.
The bank later debited Rs. 7,979 from the complainant’s savings account without consent. The complainant filed a complaint alleging the bank collected Rs. 7,341 in excess and sought the refund. The District Commission ruled in favor of the complainant, ordering the bank to pay Rs. 15,000 in compensation with 9% interest and Rs. 5,000 for litigation costs. The bank, dissatisfied with the decision, filed an appeal before the State Commission of Telangana.
The Commission noted that the complainant purchased an item for Rs. 24,710.66 and requested repayment in six EMIs, but the bank allowed repayment in 12 EMIs. The complainant paid Rs. 26,520 in six installments, exceeding the purchase amount, as EMI payments include interest that decreases with fewer installments. The Commission criticized the bank for failing to explain the Rs. 7,979 auto-debit or disclose the interest charged.
Despite claims of initiating a refund, the bank provided no clear evidence for the excess amount collected. The Commission upheld the District Commission’s decision, finding that the lower forum had properly evaluated the evidence and dismissed the appeal.
Source: – Live Law
By: – Rajat Ranjan
