Consumer forum fines Barclays bank over unfair trade practices

Consumer forum directed Barclays Bank to pay Rs 5,000 as compensation to a customer

A district consumer forum has directed Barclays Bank to pay Rs 5,000 as compensation to a customer after finding it guilty of unfair trade practices, saying though it propagated efficient services, things happen otherwise.

The forum's order came on a complaint by South Delhi resident Bhagwat Prasad after the bank failed to adjust Rs 10,000, the full payment made by him towards a credit card purchase, and instead kept on adjusting it towards the EMI.

According to the complaint, Prasad purchased goods worth Rs 10,000 in February, 2008, using Barclays credit card.

"Opposite Party (bank) has indulged in deliberate deception and unfair trade practices in continuing with EMI on one hand and assuring the complainant that purchase amount has not been converted to EMI on the other," the forum, headed by its president Justice A S Yadav, said.

"We find OP (Bank) guilty of unfair trade practices and direct it to pay Rs 5,000 as compensation for harassment, inclusive of litigation expenses," it said, adding "the bank always propagates efficient service to customers however things are otherwise."

The forum said the bank had a malafide intention when it converted Rs 10,000 into 12 EMIs in spite of one-time payment and the whole action was taken in a mechanical manner without verifying actual record.

"OP (bank) with malafide intention converted the said Rs 10,000 into 12 EMIs in spite of one-time payment of the said amount in March itself. Bank credited it towards first ten instalments while continuing sending bills along with late payments charges for 11th and 12th instalments.

"On the face of it, it appears that whole action is taken by OP in purely mechanical manner without verifying the actual record," it said.