HSBC India found deficient in service

HSBC has been directed by a consumer forum to pay Rs 25,000 as compensation to a former credit card holder.

This was after the bank failed to remove the card holder's name from a defaulters list after he cleared all his dues.

The New Delhi District Consumer Disputes Redressal Forum observed that once the card holder paid all the dues, the bank should have closed the accounts and informed the Credit Information Bureau (India) Ltd (CIBIL) that nothing was outstanding.

"We hold opposite party (HSBC Bank) deficient in service in not informing CIBIL of settlement of all outstanding dues of complainant...," the bench presided by C K Chaturvedi said.

It directed the bank to issue a no-dues certificate to Delhi-resident Vinay Chola and to reconsider a fresh card for him. The forum also awarded him compensation of Rs 25,000 towards litigation charges and harassment caused to him.

Vinay had alleged that his credit status with CIBIL showed him as a defaulter despite he having cleared all his dues with the bank.

The bank, in its defence, had contended that the settlement amount was not paid within the agreed upon time.

The forum, however, rejected the contention saying its recovery agents collected the last payment late.

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