Bengaluru Consumer Court orders Standard Chartered Bank to pay ₹1 lakh to customer for failure to update his CIBIL records

The Additional Consumer Disputes Redressal Commission at Bengaluru recently ordered Standard Chartered Bank and its assignee Shaha Finlease to pay a compensation of ₹1 lakh to a businessman for failing to update his credit information or CIBIL after closure of his credit card account..A quorum of president B Narayanappa and cembers Jyothi N and Sharavathi SM held the Standard Chartered Bank and Shaha Finlease jointly and severally liable for the customer’s harassment and further directed them to pay a litigation cost of ₹3,000 to him.VV Venkatesh Babu, the complainant, had in 2010 surrendered his credit card but the bank allegedly continued to harass him for rental charges. He then offered to close the account upon payment of ₹15,500 towards full and final settlement against the dues claimed..The complainant paid the amount and received a confirmation that there were no outstanding dues. The bank on its part also undertook to remove the complainant’s name in CIBIL records and update it with the assignee.However, he later found that the CIBIL record wasn’t updated and it continued to show him as debtor. The assignee demanded ₹20,491 to issue a no dues certificate and to update the CIBIL record. The complainant then moved the consumer court seeking compensatory damages for the deficiency in service. While the bank did not enter appearance in the case, the Shaha Finlease contended that the complaint is time barred as it was after 8 years that the complainant approached it..Considering the arguments and the record, the Consumer Court found that Shaha Finlease had issued legal notices to the complainant in 2020 and 2022 informing that there was a due amount of a whopping ₹20 Lakh and over ₹33 Lakh as outstanding. Shaha Finlease also had demanded 20,491 from the complainant for clearing the CIBIL records.However, the Consumer Court also noted that the bank had already confirmed that there are no dues outstanding in the credit card account of the complainant. It thus held that the demand of money to issue a no dues certificate amounted to deficiency in service and ordered payment of compensation..Advocate Abhishek MR represented the complainantAdvocate Santhosh Kumar MB represented Shaha Finlease [Read Order]