NEW DELHI: A district consumer commission in Kerala has directed Federal Bank to pay Rs 1.25 lakh in compensation to an customer after his debit card was blocked without any intimation, leaving him and his family stranded at Kuwait International Airport despite having sufficient funds in their account.The Ernakulam District Consumer Disputes Redressal Commission, in its July 14 order, held the bank liable for deficiency in service and unfair trade practice by blocking the customer’s international debit card without ensuring that he was informed or received the replacement card before his travel.Family left stranded at Kuwait airport despite sufficient fundsAccording to the commission’s order, the complainant, an customer of Federal Bank since 2015, was issued an international world debit card carrying premium features such as higher transaction limits and complimentary access to airport lounges. Relying on these features, he regularly used the card during international travel and did not carry cash.On September 2, 2021, while travelling from Kuwait to Kochi with his family, the complainant attempted to use the card to access an airport lounge. However, the transaction failed with a “card failure” message, and he was denied entry. Attempts to use the card at the airport shops also failed. Upon reaching Kochi, the card was again declined at the duty-free shop and at the bank’s ATM, which displayed the card as invalid.“On correspondence with the opposite parties, it was found that the said debit card issued to the complainant by the opposite parties was deleted from the payment system without any notice or intimation,” the commission order reads.The customer later discovered that the bank had blocked his debit card and issued a replacement card without informing him. He alleged that the new card remained at the bank branch for months while he and his family had to suffer during their international trip.The bank, however, argued that the card had been blocked after receiving a security alert from Mastercard regarding a possible data compromise. It claimed that a replacement card had already been issued and that attempts were made to notify the customer, but the SMS could not be delivered due to technical reasons.Why did the consumer commission rule against the bank?The bench comprising President D B Binu and members V Ramachandran and Sreevidhia T N observed that while the bank claimed it had blocked the card to protect the customer from possible fraud, it failed to establish that the customer had been fully informed or that the replacement card had been delivered before his travel.“At the airport, the complainant and his family were completely on their own… they had sufficient funds in their bank account, but because the card had been blocked without their knowledge, every attempt to pay was declined and they could not even buy a bottle of water or basic food,” the bench noted.The commission also pointed out inconsistencies in the bank’s explanation regarding the dates on which the replacement card was issued and the original card was blocked.“There is also a clear inconsistency in the opposite parties’ own version regarding the dates of the alleged MasterCard alert and the issuance of the new card… this mismatch in dates undermines the credibility of their explanation,” the commission further noted.Holding the bank responsible for the customer’s ordeal, the commission said the failure to inform him about the blocking of the card or ensure delivery of the replacement amounted to deficiency in service.“These acts clearly constitute deficiency in service and unfair trade practice and the complainant has proved the same from his side,” the commission concluded.The commission directed the bank to pay Rs 1 lakh as compensation for the mental agony, hardship and trauma suffered by the customer and Rs 25,000 towards litigation costs, taking the total award to Rs 1.25 lakh. It also directed the bank to pay the amount within 45 days, failing which the compensation would carry 9 per cent annual interest.
