Holding that a bank cannot deny responsibility for the promotional benefits it used to market a credit card, the Mohali consumer disputes redressal commission directed IndusInd Bank to refund ₹25,000 joining fee with interest to a Mohali resident who was unable to redeem complimentary flight vouchers promised at the time of enrolment.
Market Context
The commission observed that “the promotional benefits constituted a material inducement for obtaining the credit card” and ruled that any arrangement between the bank and Jet Airways could not prejudice the consumer’s rights.
The order came on a complaint filed by Harpreet Singh, a resident of Phase 10.
Singhpaid a one-time joining fee of ₹25,000 and received the card along with four promotional codes valid till November 30, 2018. In July 2018, when he tried to book flight tickets to Hyderabad using the promotional codes, the booking portal repeatedly displayed the message that there were not enough promotional seats available. He then wrote to the bank seeking either a refund of the joining fee or an alternative benefit. Despite repeated emails, reminders and a legal notice, the bank declined his request.
The bank argued that Jet Airways was a necessary party to the dispute as the promotional offer was related to the airline and that it had only acted as the card issuer. It also claimed the complainant had been informed about the redemption process.
The commission, comprising president SK Aggrawal and its members Paramjeet Kaur and Lt Col JS Bath (retd), rejected the defence, holding that Singh had entered into the transaction with the bank and paid the joining fee to it. It also noted that the bank failed to produce any evidence in support of its claims, observing that pleadings without proof do not constitute evidence.
Finding deficiency in service and unfair trade practice, the commission partly allowed the complaint and directed IndusInd Bank to refund ₹25,000 with 6% annual interest from the date of filing of the complaint until realisation. The bank was also directed to pay ₹10,000 as compensation for mental agony, harassment and litigation expenses.
Source
According to the complaint, bank executives had approachedSingh in April 2018 and persuaded him to obtain a Signature Legend credit card by promising four promotional codes for Jet Airways flight bookings or four hotel vouchers besides complimentary lounge access at domestic airports.
