The National Consumer Disputes Redressal Commission (NCDRC) has directed the Hongkong and Shanghai Banking Corporation Ltd (HSBC) to pay Rs 15 lakh compensation, noting that due to the deficiency in service and negligence of the bank, the customers had to face mental agony and harassment.
Presiding Member Inder Jit Singh passed the order on a petition alleging that the joint savings bank account of the complainants was illegally frozen, resulting in ATM withdrawal transactions being declined and cheques being dishonoured despite having sufficient balance.
The Commission further directed HSBC to pay litigation costs of Rs one lakh, noting that the bank had frozen the joint account on the grounds of non-renewal of Know Your Customer (KYC) details of either of the complainants and/or non-deposit of some outstanding amount in one of the two loan accounts, which were settled much earlier by the complainants
Terming the Bank’s act as unjustified, the Presiding Member observed that the dishonouring of cheques adversely impacted the reputation of the complainants, besides exposing them to the possibility of criminal action.
The Commission further noted that HSBC had reopened the issue of CIBIL Status claiming some outstanding amount in the two loan accounts linked to the joint account. However, according to the records, both the loan accounts stood settled and closed in 2009 and 2010, it added.
The Commision said the KYC of both the complainants was duly updated in accordance with prevailing guidelines as on the date of freezing the savings bank account. It further said that OP’s action in reopening the issue of CIBIL Status and continuing to keep the said joint account (frozen) was not correct.
The NCDRC ruled that HSBC’s acts of omission and commission amounted to deficiency in service, entitling the complainants to compensation for embarrassment, unwarranted humiliation and loss of reputation.
It further directed the bank to ‘defreeze’ the account of the complainants, besides making changes in its records to show the loan accounts as closed and reflect the CIBIL of the complainants appropriately, after issuing the requisite ‘No Dues Certificate’ .