BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM ::
KADAPA Y.S.R DISTRICT
PRESENT SRI V.C. GUNNAIAH, B.Com., M.L., PRESIDENT
SMT. K. SIREESHA, B.L., LADY MEMBER
SRI M.V.R. SHARMA, MEMBER
Monday, 18th July 2016
CONSUMER COMPLAINT No. 36/ 2016
Smt. P.K.R. Jyothi, W/o B.S. Surendra Nath,
2/86, SBI Colony, Jammalamadugu Post,
YSR District. ….. Complainant.
Vs.
1. The Chief Manager, State Bank of India,
Taidpatri road, Jammalamadugu Post,
YSR District – 516 434.
2. The Regional Manager, State Bank of India,
Regional Business Office, 1/705, Dwaraka Nagar,
Kadapa – 516 004. ….. Opposite parties.
This complaint coming for final hearing on 12-7-2016 in the presence of complainant as in person and Opposite parties are also appeared as in person and upon perusing the material papers on record, the Forum made the following:-
O R D E R
(Per V.C. Gunnaiah, President),
1. The complainant filed this complaint under section 12 of Consumer Protection Act 1986 (for short herein after called as C.P. Act) praying this forum to direct the Opposite parties to implement reduced rate of interest and repay excess interest collected from her from 8-6-2014, rectify the wrong transactions done by the chief Manager, to pay Rs. 1,00,000/- as compensation for mental agony and give guidelines to the higher officials to take necessary departmental action to the Opposite parties 1 & 2.
2. The averments of the complaint in brevity are that the Complainant has taken house loan from O.P.1 9-6-2009 under the product of “SBI, Special home loan scheme” less than 5 to 20 lakhs. As per product bank was collected 9.25% rate of interest per annum up to 5 years and there after from 8-6-2014 collected 12.50%. the Complainant discussed with the bank officials to reduce higher rate of interest. Any borrower can reduce higher rate of interest to lower rate of interest by paying switch over fee. Finally she came to know that to reduce higher rate of interest of home loan by paying 0.56% switch over fee to the outstanding balance. So the Complainant paid one time switch over fee of 0.56% to the bank on outstanding balance on 28-5-2015 by way of cheque. Even after paying fee still the bank collected more interest from Complainant. So she appealed to Bank Ombudsmen, Hyderabad and at last the interest rate was reduced and excess amount was paid to her an amount of Rs. 73,028/- and the same has been intimated to the Complainant. But the interest has not been reduced from 8-6-2014, though the Complainant is entitled for the same. Hence, the complaint for the above reliefs.
3. The Opposite parties filed counter denying the allegations and called upon the Complainant to prove all of them. However, the Opposite parties admitted home loan was sanctioned to the Complainant as pleaded by her, but denied other allegations. It is further averred that the sanctioning authority which is then the RCPC, Proddatur while sanctioning the loan has erroneously advised the branch to collect interest at floating rate instead of fixed rate for 5 years. Basing on the said sanctioned letter which was agreed by the borrower the bank has collected interest at floating rate only. Now, the matter has been referred to the Regional Business Office, Kadapa and they in turn elaborately discussed the matter and came to conclusion that RCPC, Proddatur advised erroneously and the branch is advised to reverse the interest of Rs. 73,028/- debited to housing loan account. Accordingly, the amount of Rs. 73,028/- along with interest there on at Rs. 2,230/- is credited to the housing loan account on 20-6-2016. The request of the Complainant to reduce the rate of interest from 8-6-2014 cannot be considered as the fee for switch over of interest rate was paid on 28-5-2015 by way of cheque. Hence, the retrospective rate of interest from 8-6-2014 cannot be considered. Thus the bank is not acted any motive except following the sanction letter issued by the RCPC, Proddatur. Hence, exonerate the bank from any liability.
4. On the basis of the above pleadings the following points are settled for determination.
- Whether the Opposite parties are liable to reduce the rate of interest from 8-6-2014 as claimed by the Complainant?
- Whether the Opposite parties are liable to pay compensation as claimed by the Complainant?
- To what relief?
5. No oral evidence has been let in by the parties. But on behalf of the complainant Exs. A1 to A21 documents are marked and on behalf of the Opposite parties Ex. B1 document is marked.
6. Heard arguments on both sides and perused documentary evidence placed on record by them.
7. Point No. 1. It is contended by the Complainant that the Opposite parties paid excess interest collected from her from 28-5-2015 onwards, but not paid from 8-6-2014 and she is entitled reduced interest from 8-6-2014 and in spite of requests the bank has not paid the same. Therefore, the Opposite parties are liable to pay reduced rate of interest from 8-6-2014.
8. Per contra it is contended by the Opposite parties that since the Complainant paid switch over fee on 28-5-2015 the interest cannot be reduced from 8-6-2014. Therefore, there are no latches on the part of the Opposite parties.
9. There is no dispute between the parties that the Complainant obtained loan from O.P.1 under SBI, Special Home Loans scheme on 9-6-2009. There is also no dispute with regard to collecting of excess interest by the bank as pleaded by the Complainant though she paid switch over fee to reduce interest on 28-5-2015.
10. As seen from the record the Opposite parties have paid Rs. 73,028/- and also interest there on at Rs. 2,230/- and credited to the house loan account of Complainant on 20-6-2016 towards reduced rate of interest. This is also admitted by the Opposite parties in para – 6 of the counter. The only contention of the Complainant now is the interest was reduced by the Opposite parties from 28-5-2015 only, though she is entitled for such rate of reduced interest from 8-6-2014. The contention of Opposite parties is since the Complainant paid switch over fee by way of cheque on 28-5-2015 at 0.56% on the balance amount the rate of interest cannot be reduced from 8-6-2014. But the above contention does not appear reasonable. When the borrower i.e. Complainant herein paid one time switch over fee by way of cheque on the balance outstanding amount of house loan and claimed to reduce interest from 8-6-2014, the Opposite parties must have considered the request to reduce the interest rate from 8-6-2014 onwards. But the Opposite parties reduced interest from 28-5-2015 onwards only. Therefore, in our considered view the Complainant is entitled for reduced rate of interest from 8-6-2014 onwards though paid switch over fee on 28-5-2015 as such we are inclined to direct the Opposite parties to reduce the rate of interest and pay excess rate of interest collected to Complainant from 8-6-2014 to 27-5-2015. Accordingly, point No. 1 is answered.
11. Point No. 2. Though the Complainant claimed to direct the Opposite parties to remove wrong transactions and take necessary departmental action, the same cannot be done as there are no clinching particulars placed by the Complainant. Hence, those claims are disallowed.
12. So far as compensation for mental agony is concerned the Complainant claimed Rs. 1,00,000/- but the same is very excessive. Hence, in our considered view the Complainant is at best entitled for Rs. 2,000/- for mental agony and Rs. 1,000/- towards costs. Accordingly, point No. 2 answered.
13. Point No. 3. In the result the complaint is allowed, directing the Opposite parties to reduce the rate of interest on the house loan account of Complainant and repay the excess interest collected from 8-6-2014 and pay Rs. 2,000/- (Rupees two thousand only) towards compensation for mental agony and Rs. 1,000/- towards costs of the complaint, within 45 days from the date of receipt this order.
Dictated to the Stenographer, transcribed by him, corrected and pronounced by us in the open forum, this the 18th July 2016
MEMBER MEMBER PRESIDENT
APPENDIX OF EVIDENCE
Witnesses examined.
For Complainant: NIL For Opposite parties : NIL
Exhibits marked for Complainant : -
Ex: A1 P/c of Application to S.B.I., Manager, Dt. 1-10-2015.
Ex: A2 P/c of Appeal to Ombudsman, D. 29-10-2015.
Ex: A3 P/c of Acknowledge of Ombudsman, Dt. 12-111-2015.
Ex: A4 P/c of Reply of chief Manager, SBI Jammalamadugu, Dt.13-11-2015.
Ex: A5 P/c of Order passed by Ombudsman repay of Rs.11631/- and change of
rate of interest from 12.5% to 9.5%, Dt. 15-12-2015.
Ex: A6 P/c of Appeal to SBI Manager, Jammalamadugu, Dt.17-2-2016.
Ex: A7 P/c of Order passed by Chief Manager, Jammalamadugu to pay Rs.73028/-
back and debit to my account, Dt. 25-2-2016.
Ex: A8 P/c of Order of SBI Manager to raise EMI from Rs.10,550/-toRs.12,146/-,
Dt 30-3-16.
Ex: A9 P/c of Appeal to Regional Manager to do justice, 7-4-2016.
Ex: A10 P/c of Lawyers legal notice to the Chief Manager, Jammalamadugu,
30-4-2016.
Ex: A11 P/c of Details of switch over fee paid by me, 16-11-2015.
Ex: A12 Registered Postal acknowledgement.
Ex: A13 P/c of Documents showing that Manager of the branch can switch over any customer from higher interest rate to lower interest within the branch itself.
Ex: A14 P/c of Example of one customer who switched over on the same day when
she paid fee.
Ex: A15 P/c of Any type of home loan customer can switch over by paying fee.
Ex: A16 P/c of Documents showing we are under SBI over by paying fee.
Ex: A17 P/c of special home loan scheme product details.
Ex: A18 P/c of The documents showing the SBAR was not applicable to customer who are taken home loan under SBI special home loan scheme.
Ex: A19 P/c of Closing of special home loan scheme.
Ex: A20 P/c of Bank loan statements taken from bank.
Ex: A21 P/c of Interest rate history of SBI.
Exhibits marked on behalf of the Opposite parties : -
Ex:B1 P/c of Statement of Account issued by Jammalamadugu Branch,
Dt. 20-6-2016.
MEMBER MEMBER PRESIDENT
Copy to :-
- Smt. P.K.R. Jyothi, W/o B.S. Surendra Nath, 2/86, SBI Colony, Jammalamadugu Post, YSR District.
2) The Chief Manager, State Bank of India, Taidpatri road,
Jammalamadugu Post, YSR District – 516 434.
3) The Regional Manager, State Bank of India, Regional
Business Office, 1/705, Dwaraka Nagar, Kadapa – 4 B.V.P.
