A consumer forum in Delhi has ruled in favor of M J Anthony, a former journalist, directing SBI Cards & Payments Services Pvt. Ltd. to pay him ₹2 lakh as compensation for their deficient services. The New Delhi District Consumer Disputes Redressal Forum, comprising President Monika A Srivastava and members Kiran Kausal and Umesh Kumar Tyagi, found the company at fault for continuing to send bills to Anthony even after the expiry of his credit card, subsequently blacklisting him for non-payment. The forum acknowledged that the company’s actions resulted in significant damage to Anthony’s credit rating, leading to the rejection of his credit card applications from another bank, where he had maintained a regular account for nearly two decades.
While it is challenging to quantify the precise monetary loss incurred due to the damage to his credit rating, the forum deemed it necessary to impose punitive damages on the company. The forum ordered SBI Cards & Payments Services Pvt. Ltd. to pay ₹2 lakh as compensation to Anthony within two months of the order. Failure to comply within the given timeframe would result in an increased compensation amount of ₹3 lakh. Anthony had informed the company in April 2016, well before the card’s expiry, of his request to cancel the card and not renew it. He had not used the card for any transactions since April 9, 2016, and had followed the proper procedure by destroying the card. However, despite receiving a letter from the company in September confirming the cancellation, he continued to receive bills for the card. These bills amounted to ₹2,946 by May 18, 2017, including late payment charges and penalties.
Moreover, the company’s letter had warned Anthony about potential adverse effects on his credit history and future credit requirements if he failed to pay the outstanding amount. As a result of SBI Cards & Payments Services Pvt. Ltd. blacklisting him in the wilful defaulters’ list maintained by the Reserve Bank of India (RBI), Anthony faced difficulties obtaining loans or credit cards. During the proceedings, the company denied the allegations made by Anthony. However, the forum deemed the evidence presented by the complainant to be sufficient and held the company accountable for its deficient services, which caused significant inconvenience and financial harm to the consumer.