Hyderabad consumer forum asks CRED Pvt Ltd to pay Rs 20,000 for deficiency in service

HYDERABAD: The District Consumer Disputes Redressal Commission has ordered CRED Private Limited to pay Rs 20,000 in compensation to a Hyderabad resident for causing inconvenience and mental anguish.

Shyama Ashok Kumar (35), a Jiyaguda resident, used to pay his Indusland credit card bill via the app managed by CRED Private Limited On April 15, 2020. He made a payment of Rs 20,471 to IndusInd Bank via the CRED app, as he did every month.

Ashok Kumar even received confirmation of his payment from the CRED app. However, IndusInd Bank claimed that they had not received the payment at their end, therefore he approached the bank with all of the information regarding the payment confirmation provided by the CRED app.

Meanwhile, bank officials started harassing Ashok Kumar through their recovery agents, pushing him to approach the cybercrime police and file a case with them.

Following the complaint, the funds that had been mistakenly credited to another account were reversed and credited to Ashok Kumar's credit card account. However, he decided to approach the consumer forum for redressal and filed a petition demanding compensation.

The IndusInd Bank responded in writing, rejecting the charges made in the complaint. The bank maintained that they did not receive the claimed amount and that they proceeded in accordance with the terms and conditions agreed upon by the customer while issuing the credit card.

The bank officials further said that the CRED app's mail correspondence clearly indicated that the amount paid by Ashok Kumar towards the due of his credit card account was mistakenly credited into another account by the CRED app.

The payment was reversed and credited to Ashok Kumar's credit card account in December 2020 after obtaining a bond of indemnification from him. The bank officials requested that the case be dismissed since there was no negligence on their part.

The court pointed out that Ashok Kumar made his due payment on April 15, 2020 using the CRED app but IndusInd bank officials claimed that they did not receive the necessary funds.

The commission then issued notices to CRED Private Limited, cautioning them that Ashok Kumar had approached the commission seeking compensation from the opposing parties for the inaction and harassment with regard to his due payment.

The court noted that a mail issued by the CRED app on November 11,2020 indicated that the payment was sent to the wrong card and asked Ashok Kumar to fill out the identification form for the same. Following the completion of the necessary paperwork, the sum was reversed and re-deposited into Ashok Kumar's credit card account, to which he repaid.

The court noted that there was no proof other than the bank providing legal reminders to the complainant based on the information and material on record. Indusind Bank clearly confirmed that they began the recovery process since they had not received any funds, as Ashok Kumar alleged.

The court further noted that the CRED app failed to deposit the money into Ashok Kumar's credit card account, causing problems and mental agony as well as harassment and loss. It ruled that the CRED app was only required to compensate the complainant for the loss. Hence, the court resolved the dispute in Ashok Kumar's favour and ordered that he be granted the reliefs awarded.

While dismissing the case against Induslnd Bank, the consumer court directed CRED Private Limited to pay the complainant Rs 15,000 in compensation for inconvenience and mental anguish besides Rs 5,000 in litigation costs.

The court gave the CRED officials 45 days from the date of receipt of this judgement to comply, failing which the CRED authorities would have to pay Ashok Kumar an additional Rs 10,000 in addition to the amount awarded.