[Resolved]  SBI Cards — WRONGFUL DEBT FOR A DECLINED ATM TRANSACTION

From: RUPAM SHAH

Date: 23rd December 2009


The President / Secretary
Indian Consumer Complaint Forum,

Dear Sir,

Sub: Request to file a complaint against SBI Cards & Payment Services Ltd.& Payment Services Ltd.& Payment Services Ltd.,
Ref: SBI Credit Card No. [protected]

I am holding SBI Mumbai Card no. [protected] issued by SBI Card. I am using this card since 2003. I would like to file a complaint with the Banking Ombudsman authority against SBI Cards & Payment Services Ltd.& Payment Services Ltd.& Payment Services Ltd., Post Bag No. 28, G.P.O, New Delhi - 110001 having their office at Gurgaon & Delhi for wrongfully debiting my credit card account twice for a single transaction. The amount under dispute is Rs. 2400/- (Rupees Two Thousand Four Hundred). The first complaint for the wrongful debit was lodged with the SBI Cards & Payment Services Ltd.& Payment Services Ltd. on 7th November 2005. I have sent several reminders through email, fax, and letters and also repeatedly requested to the Company to reverse the transaction. Every time I have received reply from that the transaction dispute is under investigation.

Sir, it is more than four years now. They have failed to reverse the disputed amount for the wrongful billing. As a result to this, I have gone through tremendous loss (as they have charged me interest @42% and other charges for all this years) Therefore, I would like to file my complaint for the same with The Banking Ombudsman, Reserve Bank of India for compensation of Rs. 3, 50,000/- (Rupees Three Lacs Fifty Thousand Only) for mental harassment, torture and anguish myself and my family members have gone through for all these years.

You are kindly requested to look into the matter and lodge my complaint.

Thanking you,

Yours faithfully



Rupam Shah
[protected]


































• The name and the address (of the complainant):

RUPAM SHAH
D-402, CRYSTAL PALACE
LINK ROAD, MALAD WEST
MUMBAI – 400064
CELL: [protected]
TEL: 65712146
e-mail: [protected]@yahoo.com

• The name and address of the branch or office of the bank against which the complaint is made:

SBI CARD & PAYMENT SERVICES LTD. (SBI CARD)
POST BAG NO. 28
G.P.O.
NEW DELHI - 110001
CREDIT CARD NO. [protected]


















The facts giving rise to the complaint and ‘issues’ requiring resolution:

COMPLAINT AGAINST SBI CARDS & PAYMENTS SERVICES LTD.

1. On 7th November 2005, I had lodged a complaint with SBI Cards & Payment Services Ltd. through email & through telephone for charging me twice (one transaction was a failed transaction where ATM did not dispensed cash) for a single transaction of Rs. 2400/- (Rupees Two Thousand Four Hundred Only for a cash withdrawal from an ATM in Mumbai on 5th October 2005. The statement was received after the billing date of 3rd November 2005. (Annexure ‘ A’) for my credit card No. [protected]
2. Thereafter several written complaint were lodged through email. (Annexure ‘B’)
3. Thereafter, I had written several letters requesting them to reverse this wrong entry. The request was placed with SBI Cards & Payments Services Ltd., through fax, email, and by calling up their call centre.(Annexure ‘ B-1’)
4. After receiving my request, SBI Cards & Payment Services Ltd. asked me to fill up “Charge Dispute Form’ (Annexure ‘C’) vide their letter dated 14/11/2005. This form was sent to them duly filled & signed by me under certificate of posting (Annexure C-1)
5. I received an acknowledgement from SBI Cards & Payment Services Ltd. vide their letter dated November 22, 2005 stating that the matter is under investigation. (Annexure ‘D’).
6. Thereafter, I had made several requests to reverse the above mentioned amount with interest. Please see my letters dated 12th February, 2006, 20th August 2006 sent to SBI Cards & Payment Services Ltd. by fax, ordinary post & under certificate of posting and through emails from time to time (refer to Annexure B & B-1).
7. On December 07, 2005, SBI Cards & Payment Services Ltd. sent me another letter (Annexure ‘E’) with another ‘CHARGE DISPUTE FORM’. This form was also sent to them duly filled & signed by me under certificate of posting.
8. On February 10, 2006 after repeated reminders to SBI Cards & Payment Services Ltd. through fax, and email, they sent me a letter stating that the said ‘TRANSACTION DISPUTE’ is under investigation (Annexure – F).
9. Much to my regret, I have not received a single positive reply from SBI Cards & Payment Services Ltd. Till date regarding my complaint. All the time, I got a false assurance from SBI Cards & Payment Services Ltd. FROM TIME TO TIME that the said ‘TRANSACTION DISPUTE’ is under investigation.
10. Ironically, statement of 3rd November 2005 shows that there was a transaction declined by ATM (Annexure ‘A’). SBI Cards & Payment Services Ltd. has also reversed an ATM decline fee on 10th November 2005; please see their statement dated 3rd December 2005. (Annexure - G). It is surprising that SBI Cards & Payment Services Ltd. had reversed the ATM decline fee and corresponding over limit fee (see statement dated 3rd December 2005, but did not reverse the principal amount of Rs. 2400.00 which was charged wrongfully to my account.
11. At this moment, I would like to refer to the Reserve Bank of India’s Circular No. DPSS. No. 711/02.10.02/[protected] dated October 23, 2008 (Annexure – H) and Circular No. DPSS. No. 1424 /02.10.02/[protected] dated February 17, 2009 issued by Mr. G. Padmanabhan, Chief General Manager, R. B. I. regarding Reconciliation of Transaction at ATM failure – Time Limit & Circular No. UBD.CO.BPD.(PCB) Cir. No. 50/09.39.000/[protected] dated February 17, 2009(Annexure H-1) issued by Mr. A.K. Khound, Chief General Manager, R. B. I. issued under Section 18 of Payment and Settlement Systems Act 2007 (Act 51 of 2007). Also circular no. DBOD.FSD.BC.49/24.01..011/[protected] dated November 21, 2005 (Annexure H-2 - Please refer to guideline no. 3) issued to all commercial banks & NBFCs regarding Credit Card operations & guidelines.
12. Please refer to an article published in the Economic Times dated 17th July 2009. As per the said article Banks will have to pay account holders compensation of Rs. 100 per day for every day of delay in reversing a failed ATM transaction. (Annexure ‘I’)


13. The RBI has imposed stringent penalties on Banks who fail to reverse a transaction where Cash is not dispensed by the ATM but customer’s account gets debited within 12 days (Annexure ‘H’). SBI Cards & Payment Services Ltd.(SBI CARDS & PAYMENT SERVICES LTD. failed to give any satisfactory reply to my complaints till date. Whenever I complained or enquired about what action they have taken to this effect, I received a stereo typed reply that ‘the matter is under investigation’.
14. It is now more than 4 years since I first lodged my complaint for the wrong entry and failure of SBI Cards & Payment Services Ltd. to reverse the same.
15. SBI Cards & Payment Services Ltd. never attempted to solve the matter and rectify their mistake. On the contrary, they ignored my complaints and out of sheer negligence to customer’s complaint, they pressurized me every time to make the payments for the out standing amount. They have even charged me interest and levied other charges on such wrongful entry (the amount debited wrongfully) to my Credit Card account. There was severe bungling & gross negligence from SBI Cards & Payment Services Ltd. in this matter and I was put through lot of anguish and mental tension. I was forced to contact SBI Cards & Payment Services Ltd. many times for this issue. SBI Cards & Payment Services Ltd. also did not care to give any timely reply to me to settle the complaint nor have they shown any willingness to solve the matter.
16. At this juncture, I would like to bring to your kind attention to the fact that even after lodging several complaints with their Gurgaon & Mumbai office, I was making regular payments to SBI Cards & Payment Services Ltd till June 2009 on having a good faith on them.
17. Sir, I believe that as a customer I deserve and have all the rights to file a complaint and claim for compensation when the service provider fails to provide services to customer’s satisfaction. I also have all the rights to not to make any payments under the Consumer protection act for the sub-standard product or services provided. As a consumer I have all the rights to deny the payments, if I am not satisfied with such product or service.
18. Furthermore, I would like to state that SBI Cards & Payment Services Ltd. willfully ignored my complaints and to make matter worst they even charged me interest and levied other charges with intention to harass me.
The nature and extent of the loss caused:

A) Now, in this context, I call upon SBI Cards & Payment Services Ltd. (SBI CARDS & PAYMENT SERVICES LTD.& PAYMENT SERVICES LTD. to reverse the amount of Rs. 2400/- together with interest @ 42% per annum from November 5th 2005 till the time it is reversed and credited to my account. I also call upon SBI Cards & Payment Services Ltd. to make the payment of Rs. 100/- (Rupees One Hundred Only) per day from the 12th day of my 1st complaint lodged with them (i.e. from 7th November 2005) till date and any further period till the time it is paid as compensation for mental harassment, torture, and agony I have gone through all these years to recover the charges and amount wrongfully debited to my account.

The relief sought:

B) Therefore, I demand a lump sum compensation of Rs. 3, 50,000/- (Rupees Three Lacs Fifty Thousand Only) for the mental torture, harassment, and pain my self & my family members have gone through in the process from SBI CARDS & PAYMENT SERVICES LTD.& PAYMENT SERVICES LTD .

Thanking you,


Rupam Shah