Senior citizen sues bank for taking extra money, wins ₹3k
Cash Debited Illegally For Fuel Purchases
Petlee.Peter@timesgroup.com
Bengaluru:14.03.2021
Overcharged for fuel purchase through his debit card, a 65-year-old Bengalurean took his bank to a consumer court, which ordered it to refund the excess amount of Rs 382 collected from the man, apart from paying him Rs 3,000 as compensation.
Prasad KP of Nagarabhavi used to tank up his vehicle using his debit card. The retired banker examined his bank statements between April 24, 2014 and July 6, 2015 and found that a commission of Rs 521 was debited from his account for fuel purchases. While the actual cost of fuel was mentioned in the petrol bunk, more money was deducted from his account.
Prasad found out that as per RBI guidelines, extra charges collected as TIP or merchant discount rate (not shown at point of sale) shall not exceed 0.75% of the transaction amount for value up to Rs 2,000 and 1% of the transaction amount for value above Rs 2,000. The guidelines also say only if the consumer agrees to bear the extra charges, s/he should proceed with the transaction during fuel purchases.
Since Prasad hadn’t agreed to bear the extra cost, he requested the bank to refund the additional Rs 382 from April 2014 to July 2015. With the bank failing to do so, he approached the Bengaluru rural and urban 1st additional district consumer disputes redressal forum on March16, 2018 with a complaint against the chairman and MD of the bank and assistant general manager of its branch where he had an account.
Prasad fought his case on own, while the bank’s lawyer stated it was false, frivolous and liable to be dismissed. He said the money was debited from the customer’s account with tax on the refuelling charge. The card was swiped in another bank’s POS machine and Rs 382 was debited as per its terms and conditions. As per industrial practice, certain merchants pass on MDR or TIP charges to card holders and the fuel industry follows this. Since TIP charges were claimed by the bank whose POS machine was used, their was no deficiency by the customer’s bank, he argued.
Judges noted that as per RBI guidelines, merchants and banks which provide POS and debit card services can levy TIP charges. But this is not told to customers whose cards are swiped in POS machines. Even petrol bunk authorities do not inform customers that service charge would be deducted from their account. Only when customers get the transaction statement, they get to know that an amount greater than the actual cost of petrol or diesel has been deducted.
In Prasad’s case, it’s clear that more money was deducted from his account than the stipulated percentage permitted by RBI, the judges said, adding that this amounts to deficiency of service. Despite requests by the customer, the bank had refused to refund the excess money collected.
On February 26, 2021, the court asked the bank to refund Rs 382 to the customer with interest apart from paying him Rs 1,000 towards damages, Rs 1,000 towards correspondences and Rs 1,000 towards litigation expenses within 30 days.
Shop charges ₹7 for carry bag, fined
Haveri:
The Haveri District Consumer Redressal Forum fined a cloth vendor for charging Rs 7 from a customer for a carry bag. The forum, in its order, said companies selling bags with their shop’s logo is illegal. Forum chairman Sunanda and member Maheshwari B S ordered that Rs 7 charged for the bag be refunded to the complainant.
Lifestyle International Private Limited was also asked to pay Rs 3,000 for harassment, mental agony and litigation expenses. The company should deposit Rs 10,000 to the forum’s legal aid account.
Jyoti Jambagi, a resident of Davanagere city, had shopped at the outlet in December 2019. The outlet charged Rs 7 for the bag. Jyoti contended that by charging her for the bag, the outlet was not being responsibile in discharging its service. The forum slammed the firm for charging an additional amount for the paper bag.
The forum ruled that it was the store’s duty to provide a free bag to the customer who purchased their product. TNN
Senior citizen sues bank for taking extra money, wins ₹3k
Cash Debited Illegally For Fuel Purchases
Petlee.Peter@timesgroup.com
Bengaluru:
Overcharged for fuel purchase through his debit card, a 65-year-old Bengalurean took his bank to a consumer court, which ordered it to refund the excess amount of Rs 382 collected from the man, apart from paying him Rs 3,000 as compensation.
Prasad KP of Nagarabhavi used to tank up his vehicle using his debit card. The retired banker examined his bank statements between April 24, 2014 and July 6, 2015 and found that a commission of Rs 521 was debited from his account for fuel purchases. While the actual cost of fuel was mentioned in the petrol bunk, more money was deducted from his account.
Prasad found out that as per RBI guidelines, extra charges collected as TIP or merchant discount rate (not shown at point of sale) shall not exceed 0.75% of the transaction amount for value up to Rs 2,000 and 1% of the transaction amount for value above Rs 2,000. The guidelines also say only if the consumer agrees to bear the extra charges, s/he should proceed with the transaction during fuel purchases.
Since Prasad hadn’t agreed to bear the extra cost, he requested the bank to refund the additional Rs 382 from April 2014 to July 2015. With the bank failing to do so, he approached the Bengaluru rural and urban 1st additional district consumer disputes redressal forum on March16, 2018 with a complaint against the chairman and MD of the bank and assistant general manager of its branch where he had an account.
Prasad fought his case on own, while the bank’s lawyer stated it was false, frivolous and liable to be dismissed. He said the money was debited from the customer’s account with tax on the refuelling charge. The card was swiped in another bank’s POS machine and Rs 382 was debited as per its terms and conditions. As per industrial practice, certain merchants pass on MDR or TIP charges to card holders and the fuel industry follows this. Since TIP charges were claimed by the bank whose POS machine was used, their was no deficiency by the customer’s bank, he argued.
Judges noted that as per RBI guidelines, merchants and banks which provide POS and debit card services can levy TIP charges. But this is not told to customers whose cards are swiped in POS machines. Even petrol bunk authorities do not inform customers that service charge would be deducted from their account. Only when customers get the transaction statement, they get to know that an amount greater than the actual cost of petrol or diesel has been deducted.
In Prasad’s case, it’s clear that more money was deducted from his account than the stipulated percentage permitted by RBI, the judges said, adding that this amounts to deficiency of service. Despite requests by the customer, the bank had refused to refund the excess money collected.
On February 26, 2021, the court asked the bank to refund Rs 382 to the customer with interest apart from paying him Rs 1,000 towards damages, Rs 1,000 towards correspondences and Rs 1,000 towards litigation expenses within 30 days.
Shop charges ₹7 for carry bag, fined
Haveri:
The Haveri District Consumer Redressal Forum fined a cloth vendor for charging Rs 7 from a customer for a carry bag. The forum, in its order, said companies selling bags with their shop’s logo is illegal. Forum chairman Sunanda and member Maheshwari B S ordered that Rs 7 charged for the bag be refunded to the complainant.
Lifestyle International Private Limited was also asked to pay Rs 3,000 for harassment, mental agony and litigation expenses. The company should deposit Rs 10,000 to the forum’s legal aid account.
Jyoti Jambagi, a resident of Davanagere city, had shopped at the outlet in December 2019. The outlet charged Rs 7 for the bag. Jyoti contended that by charging her for the bag, the outlet was not being responsibile in discharging its service. The forum slammed the firm for charging an additional amount for the paper bag.
The forum ruled that it was the store’s duty to provide a free bag to the customer who purchased their product. TNN
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