Date of Filing:09.12.2019

Date of Disposal:12.05.2023

BEFORE THE IV ADDL DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION BENGALURU

1^ST FLOOR, BMTC, B-BLOCK, TTMC BUILDING, K.H ROAD, SHANTHINAGAR, BENGALURU – 560 027.

ORDER

SRI CHANDRASHEKAR.S.NOOLA, MEMBER

1. The complainant has submitted this complaint in accordance with Section 12 of the Consumer Protection Act of 1986. The complainant requests that this Commission order the opposite party Bank to refund the prepayment charges of Rs.15,336.29 with interest at 24% per annum and direct the opposite party to pay Rs.50,000/- in compensation.

2. The following are the complaint's key facts: 

The complainant had obtained a personal loan of Rs.4,00,000/- from the opposite party bank, which was to be repaid in 48 months at an EMI of Rs.10,812/-. The complainant claims that after paying 19 EMIs and interest, he opted to prepay the loan amount. In accordance with the bank's website, "prepayment of the loan is possible at any time during the loan tenure subject to payment of standard pre-closure charges of 5%." The waiver, if any, of the prepayment charges will be applicable provided 1.Customer paid 12 or more EMI and 2. The prepayment of the loan is done using customers own funds, waiver on prepayment charges is not applicable in case of balance transfer." Based on the previously mentioned schedule of charges, the complainant decided to make prepayment of the loan and requested the op for the premature closure of the account and not to charge the prepayment charges as per the guidelines. The complainant claims that he paid the prepayment charges at the time of the pre-closure protest to avoid any default reporting in the CIBIL by the opposite party bank and any other agency as required by law. Furthermore, he claims that "the waiver, if any (this condition would be based on the agreement signed while availing loan) the wording if any without any definition or explanation on the website is a misleading statement that is contrary to banking rules and practices." On November 11, 2018, the complainant filed a complaint with the Reserve Bank of India's banking ombudsman. The op responded by simply providing the loan account details and the completion of documents, including agreements, but did not comment on the service charges and costs for personal loans. On 30.05.2019, the complainant served the legal notice, and the op provided the stereotypical response once more.

3. The points that arise for our consideration are;

1. Whether the Complainant prove that there is deficiency of service on the part of the OPs as alleged in the complaint and thereby prove that he is entitle for the relief sought?

2. What order?

4. The findings on the above points are as under:

Point No.1               :       Affirmative

Point No.2               :       As per final order

REASONS

5. POINT NO.1:- The complainant was sanctioned a personal loan of Rs.4,06,104/- to be repaid in 48 months of Rs.10,812/- EMI. Further, the bank charge and interest of 12.59 percent along with the processing fee of Rs.1,499/-, with the conditions that for delayed payment 24% interest will be charged, for bounced of cheque the charges of Rs.400/-, repayment mode swap charges of Rs.500/-, and many other conditions as mentioned in the bank copy of the key facts statement and most important information submitted by the opposite party. The complainant decided to pre-close the loan account by paying the balance of the EMIs. The complainant has paid more than 12 EMIs. In the annexure-I submitted by the complainant, which is related to the bank's website, it is mentioned that prepayment of the loan is possible at any time during the loan tenure, subject to payment of standard prepayment charges of 5%. The waiver, if any, of the prepayment charges will be applicable provided the customer has paid well or more EMIs and the prepayment of the loan is done using the customer's own funds". Which is relevant to this case. This Commission observes that the complainant in this case has paid the principal and interest amount, processing fee, and other charges as demanded by the bank without any default in payment of installments. By paying the prepayment with the rate of interest as charged by the bank, the complainant is clearing his dues in advance; hence, charging a prepayment of Rs.15,336.29/- is not fair. The bank has also issued a "no dues certificate on this loan account, which is a testimony for clearing the loan account. Considering the forgoing discussion, the complaint is allowed in part. As a result, we have an affirmative answer to this question.

6. POINT NO.2:- In the result, we passed the following:

ORDER

1. The complaint is partly allowed.
2.  Opposite party is directed to refund Rs.15,336.29/- with 6% interest from the date of this complaint till the date of refund of the amount to the complainant.
3. OP is also directed to pay Rs.4,000/- as compensation and Rs.2,000/- as cost of the proceedings to the complainant.
4. The Op shall comply the order within 45 days from the date of receipt of this order. Failing which the amount Rs.15,336.29/- carries 9% interest from the date of complaint till realization.

5. Furnish free copy of this order to both the parties.

 (Dictated to the Stenographer, got it transcribed, typed by him and corrected by me, then pronounced in the Open Commission on 12^th                     May 2023)

(RAMACHANDRA M.S.)

PRESIDENT

(NANDINI H KUMBHAR)             (CHANDRASHEKAR S.NOOLA)       

         MEMBER                                        MEMBER

Witness examined on behalf of the complainant by way of affidavit:

Sri Arshdeep Singh Nagpal-who being the complainant

Documents produced by the complainant:

Witness examined on behalf of the OP-1&2 by way of affidavit:

Sri Rahul Srivastava-Who being the Legal manager of OP

Documents produced by the OP-1&2:

(RAMACHANDRA M.S.)

PRESIDENT

(NANDINI H KUMBHAR)          (CHANDRASHEKAR S.NOOLA)

         MEMBER                                     MEMBER

SKA*