Credit card firm told to pay `40K com­pen­sa­tion

The New Indian Express - - CHENNAI -

A con­sumer fo­rum in the city has or­dered a credit card com­pany to pay `40,000 as com­pen­sa­tion to a lawyer for send­ing him a le­gal no­tice over pend­ing dues though the mat­ter has al­ready been set­tled be­fore a Lok Adalat. P Ku­mar, an ad­vo­cate of Ayanavaram, had said in his com­plaint that he had failed to pay a due of `15,555 for the SBI credit card he was us­ing. But the mat­ter was later set­tled in a Lok Adalat and Ku­mar paid `20,000 as per the award of the Lok Adalat in 2011. How­ever, the credit card com­pany sent a le­gal no­tice in Septem­ber 2012 ask­ing him to pay `1,45,446, in­clud­ing penal­ties, for his de­fault. Ku­mar said the credit card com­pany had also not re­moved his name from the list of de­fault­ers’ list. This has caused men­tal agony to him and wanted a com­pen­sa­tion of `1,25,000 for the ac­tions of the com­pany. The coun­sel of the credit card com­pany ar­gued that the con­sumer fo­rum had no ju­ris­dic­tion to hear the case. “As per the card­holder’s agree­ment there is an ar­bi­tra­tion clause, and the dis­pute shall be re­solved by ap­point­ment of a sole ar­bi­tra­tor, hence this fo­rum is de­void of ju­ris­dic­tion to en­ter­tain the com­plaint,” it ar­gued. The Dis­trict Con­sumer Dis­putes Re­dres­sal Fo­rum, Chen­nai North ruled, “Once the mat­ter is set­tled in view of com­pro­mise ar­rived at through the Lok Adalat and set­tled be­tween par­ties, the op­po­site party had no lo­cus standi to dis­turb the com­plainant for the same is­sue,” the fo­rum ruled.

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