The complainant, P. Venkatesh, a software professional from Ramanthapur, had alleged deficiency in service by the company.

Credit card payment failed despite confirmation

According to the complaint, Venkatesh used his HDFC Bank credit card to pay hospital expenses for his father's treatment at Yashoda Hospital in November 2021. He swiped the card for ₹1,00,000 on November 11, ₹1,00,000 on November 16, and ₹70,000 on the same day, taking the total to ₹2,70,000.

In the credit card statement issued on November 29, the total outstanding amount was ₹2,74,394 with a minimum due of ₹17,886. The payment due date was December 1, 2021.

Venkatesh attempted to clear the entire bill through the CRED mobile application using his SBI account on December 9, 2021. After receiving the payment, the platform reportedly informed him that the amount would be credited to the credit card account within three hours.

However, the amount was not transferred to the credit card account.

Bank recovery calls caused mental distress

Due to non-credit of the payment, HDFC Bank deducted the minimum due of ₹17,886 and demanded immediate settlement of the remaining amount, warning that the account could be reported to credit bureaus.

The complainant stated that he received repeated calls from recovery agents and faced harassment and mental distress. On January 4, 2022, CRED informed him through a message that the payment received on December 9 had failed on January 3 and the amount was returned to his bank account.

Venkatesh argued that holding the amount for over 25 days without settling the credit card bill amounted to deficiency in service and unfair trade practice.

CRED cites technical failure in payment system

In its written statement, the company denied the allegations and said it operates a platform that allows credit card users to manage cards and pay bills through third-party settlement banks.

The company admitted receiving ₹2,74,394 on December 9, 2021 but said the transaction failed due to a technical issue in NEFT payment rails operated through the settlement bank. It stated that such failures occur in about 0.1% of transactions and are beyond the control of payment aggregators.

According to the company, the refund from the settlement bank was received on January 3, 2022, after which the amount was returned to the complainant's account.

Forum orders interest and compensation

After examining the evidence and submissions, the commission held that the complainant had deposited the money with the expectation that the platform would settle the credit card bill.

The forum said the company's failure to complete the transaction defeated the purpose of the payment and caused harassment to the consumer.

The commission partly allowed the complaint and directed the company to:

• Pay 12% annual interest on ₹2,74,394 from December 9, 2021 to January 3, 2022.

• Pay ₹10,000 as compensation for mental agony and harassment.

• Pay ₹2,500 towards litigation costs.

The remaining claims were rejected. The company has been given 45 days to comply with the order.