Hyderabad Consumer Court Case: In a significant ruling, the District Consumer Disputes Redressal Commission has ordered CRED Private Limited to compensate a Hyderabad resident with Rs 20,000. The commission found the company responsible for causing inconvenience and mental anguish to Shyama Ashok Kumar (35), a resident of Jiyaguda.
Payment Troubles with CRED App
Shyama Ashok Kumar used the CRED app, managed by CRED Private Limited, to pay his monthly IndusInd credit card bill. On April 15, 2020, he made a payment of Rs 20,471 to IndusInd Bank through the app, as he did every month. Ashok Kumar even received confirmation of his payment through the CRED app.
However, IndusInd Bank disputed the receipt of the payment and claimed they hadn’t received it on their end. Consequently, Ashok Kumar approached the bank with all the payment confirmation details provided by the CRED app.
Harassment and Legal Action
As the situation unfolded, bank officials began harassing Ashok Kumar through their recovery agents, pressuring him to involve the cyber crime police and file a case. Disturbed by the turn of events, Ashok Kumar decided to seek redressal through the consumer court and filed a petition, demanding compensation for the troubles he had faced.
The Bank’s Response and Reversal
IndusInd Bank responded in writing, refuting the charges made in Ashok Kumar’s complaint. The bank stated that they hadn’t received the claimed amount and had acted in accordance with the terms and conditions agreed upon when issuing the credit card. Bank officials emphasized that the CRED app’s correspondence clearly indicated that the payment made by Ashok Kumar was mistakenly credited to another account.
Subsequently, the bank reversed the funds and credited them to Ashok Kumar’s credit card account in December 2020, following the submission of a bond of indemnification. The bank officials argued that the case should be dismissed since there was no negligence on their part.
The Consumer Court’s Verdict
The Hyderabad consumer court examined the details of the case and observed that Ashok Kumar had made his due payment on April 15, 2020, using the CRED app. However, IndusInd bank officials claimed that they hadn’t received the funds. Taking this into account, the commission issued notices to CRED Private Limited, cautioning them about Ashok Kumar’s compensation claim for the inaction and harassment he had experienced.
The court acknowledged a mail sent by the CRED app on November 11, 2020, which confirmed that the payment had been sent to the wrong card. Ashok Kumar was asked to complete an identification form, which he duly filled out. Following the necessary paperwork, the amount was reversed and re-deposited into Ashok Kumar’s credit card account, which he repaid.
The court noted that apart from legal reminders from the bank, there was no evidence to support Ashok Kumar’s allegations of non-payment. IndusInd Bank clearly stated that they initiated the recovery process because they hadn’t received any funds.
Furthermore, the court recognized that the CRED app’s failure to deposit the money into Ashok Kumar’s credit card account had caused problems, mental agony, harassment, and financial loss. Consequently, the court ruled that CRED Private Limited was obligated to compensate Ashok Kumar for his losses. As a result, the court resolved the dispute in Ashok Kumar’s favor and ordered the company to provide the awarded reliefs.
Compensation and Verdict Compliance
While dismissing the case against IndusInd Bank, the consumer court directed CRED Private Limited to pay Rs 15,000 to Ashok Kumar as compensation for the inconvenience and mental anguish caused. Additionally, CRED was ordered to pay Rs 5,000 as litigation costs.
The court granted CRED officials 45 days from the date of receiving the judgment to comply. Failure to meet this deadline would result in CRED authorities being required to pay an additional Rs 10,000 to Ashok Kumar, in addition to the initial compensation amount.
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