Mumbai: A district consumer commission in an order has directed Standard Chartered Bank Credit Card Department to reverse ₹90,684 a customer lost to unauthorised transactions on his credit card. The customer lost money through nine transactions on PayTM platform, which he had not authorised.
The commission said that bank had contradicted itself and its report did not match with findings of PayTM on authorised transactions and OTPs sent so besides reversing the entry, the customer be given 35,000 towards mental agony and litigation cost.
Unusual transactions of ₹90,000 to PayTM
The order dated January 20, 2023 (uploaded April 4, 2023) was passed by S S Mhare, president and M P Kasar, member District Consumer Disputes Redressal Commission, Central Mumbai on a complaint by Jagat Gandhi, Sion resident against Standard Chartered Bank Credit Card Department. Gandhi had used the credit card of the bank since 1992. In November of 2019, there were nine unusual back-to-back transactions on PayTM platform (Grabon PayTM) for an amount of totalling ₹90,000 that was charged to his credit card account. He stated that he did not get even a single OTP either through sms or email.
OTPs sent to numbers not registered with bank
As per paytm cyber cell report, the OTP pertaining to the unauthorised transactions was sent on different mobile numbers and email addresses which were not his nor were they registered with the bank. The bank said that the complaint should not be entertained as it was false and suffered from for non-joiner of necessary parties.
It contended before the commission that when a complaint of unauthorised transaction was made, immediately the credit card was blocked and a new one issued with credit of the amount lost.
Transations took place after OTPs validated
However, the bank stated that on their investigation they got to know that the transactions happened only after validation from OTPs through the contact details registered with it. It also stated that it reversed the credit limit provided after that and that the complainant intentionally or inadvertently shared details of the credit card.
During the hearing, the commission stated that as per PaytM Cyber cell report, the OTPs went to a mobile number and email id that do not belong to the complainant nor are linked to his account. It added that the customer got to know of unauthorised transactions when a bank officer called to check about them in Gandhi inturn informed that he had not authorised them.
Commission: Customer cannot be held accountable for loopholes in bank's reports
The commission cited a RBI circular which stated that if the victim has informed the bank within three days of the unauthorised transaction then victim is not liable to pay and that the report of PayTM and that of the bank did not match.
The bank's report, commission observed, was inconsistent and had loopholes for which the customer cannot be held responsible. It also upheld the contention of Gandhi that not once did the bank call before processing the transaction and that it had indulged in deficiency in service and committed unfair trade practice. The commission directed the bank to comply with the order in 30 days.
