The District Consumer Disputes Redressal Commission, Rohtak, has directed two local firms to compensate a customer after his air-conditioner purchase was converted into a six-month EMI scheme without his consent. The Commission, headed by Nagender Singh Kadian, ordered King Electronics and Better Deals, both based in Rohtak, to reimburse Rs 1,750 charged as foreclosure fees, along with annual interest at 9 per cent from April 25, 2023, the date of filing of the complaint, until payment. The firms were also directed to pay Rs 5,000 as compensation for mental harassment and another Rs 5,000 towards litigation expenses. The order is to be complied with within one month.
Background of the Complaint
According to the Commission's order, complainant Vipin Kaushik purchased a split air-conditioner from King Electronics on April 1, 2023, using his SBI credit card. A few days after the purchase, Kaushik received an SMS informing him that the transaction amount of Rs 33,967.91 had been converted into a six-month Merchant EMI carrying interest at a reducing rate of 15 per cent and a processing fee of Rs 99. The complainant claimed he had never opted for the EMI facility and approached both the dealer and SBI Card to reverse the transaction.
Dealer's Undertaking and SBI Card's Defense
The complaint stated that SBI Card informed him the EMI conversion had been initiated at the dealer's request and that cancelling it would attract foreclosure charges. To avoid paying interest, the complainant sought foreclosure of the EMI but was charged around Rs 1,750. During the proceedings, SBI Card contended that the complainant himself had opted for the Merchant EMI facility and that the transaction was accordingly converted into six monthly instalments of Rs 5,911.56 each. It further contended that the complainant had made delayed payments and, therefore, the charges levied on his credit card account were in accordance with the applicable terms and conditions.
Commission's Findings
However, after examining the documents and hearing the audio recording submitted by the complainant, the Commission observed that neither the dealer nor SBI Card had produced any evidence to prove that the transaction had been converted into EMI with the complainant's prior consent. The Commission also relied on a handwritten undertaking issued by the dealer, stating that any additional charges arising on the customer's credit card account would be borne by the dealer. It held that the undertaking itself indicated the dealer had accepted responsibility for the charges resulting from the EMI conversion.
Ruling and Compensation
The Commission concluded that the complainant had been compelled to incur foreclosure charges solely because the transaction had been converted into a Merchant EMI without his consent, amounting to deficiency in service and an unfair trade practice by the two dealer firms. As a result, the Commission ordered King Electronics and Better Deals to reimburse the foreclosure fee of Rs 1,750 with 9% annual interest from the complaint filing date, pay Rs 5,000 for mental harassment, and Rs 5,000 for litigation expenses. The firms must comply within one month.
