Manish Raj, TNN | Sep 15, 2014, 01.31AM IST
CHENNAI: A student pursuing a postgraduate course at a foreign university could not pay his fees because of several failed bank transactions. Eight years after he moved the state consumer disputes redressal commission, it has fined a bank 2 lakh for deficiency in services.
In his submissions to the commission, R Sivakumar of Adyar said his son studied at the University of Leicester. Sivakumar had availed a 'world currency card' from IDBI Bank that allowed the card holder to use it abroad for payments. He had given the card to his son.
His son was solely dependent on the card for withdrawing cash and making payments. On October 17, 2005, he used the card at the university to pay around 588 pounds for his accommodation fees. But the transaction was declined. He made two more attempts which were declined. Despite the failed transactions, around 1188 pounds was debited from the account. Due to the failed transactions, he could not pay the fee on time.
After informing bank officials, the amount was debited back in his account after 10 days. Sivakumar said during this period his son "lost his credibility for not paying the fee within time," and was put to "mental agony and indignity."
IDBI Bank said the bank "duly honoured" the transactions but the merchant establishment (acquirer bank) declined it. "The case of rejection would arise when there is insufficient amount...In this case, the account had enough fund and all three transactions were honoured," said IDBI Bank. Also, after receiving the dispute form, it had credited the amount in the account, it said.
The bench of presiding judicial member J Jayaram and member S Sambandam said the argument that the acquirer bank being at fault was "untenable." Despite explanations submitted by IDBI, deficiency in service was "patently evident."
It then directed IDBI Bank to pay the compensation for "monetary loss, loss of reputation and credit worthiness..." along with 10,000 as case costs.
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