By. Smt. Beena. M, Member:
This is a complaint filed under section 35 of the Consumer Protection Act 2019.
2. Brief facts of the case are given below:
As per the advertisement of the Opposite Party, the Complainant approached the Opposite Party’s finance limited on 06.10.2021 and by pledging 73.9880 grams of gold ornaments, borrowed Rs.2,38,063/- from the Opposite Party. The Opposite Party assured that the interest rate of the loan is only 7% per annum. Thereby, the Complainant has to pay Rs.1,460/- towards monthly interest and the term as shown in the notice of advertisement. Hence the Opposite Party is entitled to collect only Rs.5,061/-. But the Opposite Party levied interest of Rs.18,120/- and also charged as processing fees instead of charging 7% interest. This is deficiency of service. The Opposite Party circulated a misleading advertisement notice in order to attract the consumers into their Company. The advertisement notice published by the Opposite Party is a misleading advertisement as per Sec.2 (28) of Consumer Protection Act. When the Complainant went to the Opposite Party’s Company on 06.10.2022, they informed that the Complainant should pay Rs.16,000/- towards interest. Thereafter, on 18.01.2022 when the Complainant went to the Opposite Party’s Office, he realized that he was cheated. Because of the adamant attitude of Opposite Party, the Complainant without any other option paid the entire amount they demanded and released the gold ornaments. On verification of the account statement, the Complainant found that the Opposite Party charged 26% interest per annum, instead of 7%. Hence the Complainant prayed to return the excess amount of Rs.13,059/- which was collected as excess interest by the Opposite Party from the Complainant and to pay a sum of Rs.15,000/- towards compensation and cost of the proceedings.
3. The Opposite Party did not appear before this Commission in spite of receipt of notice sent by this Commission and did not filed their version and therefore, the Opposite Party was called absent and set ex-parte.
4. The Complainant has filed his proof affidavit and was examined as PW1 and the documents produced were marked as Ext.A1 and A2. Ext. A1 is the statement of account, which shows that the Complainant had paid Rs.18,120/- as interest up to 18/01/2022 and Rs.209/-as processing charge. Ext. A2 is the advertisement notice in which it is clearly mentioned that the rate of interest is only 7% per annum. The Commission verified whether the Opposite Party has charged exorbitant rate of interest. On verification it is seen that the total amount of interest for an amount of Rs.2,38,063/- for one year will come to Rs.16,665/-, and in addition, the Opposite Party has the right to collect processing fee. Here the Opposite Party unfairly collected Rs.1,455/-, i.e. 18,120-16,665 which the Opposite Party is liable to return. The claim of the Complainant remains unchallenged. The unchallenged claim of the Complainant through his proof affidavit along with supporting documents proves the case of the Complainant. The Commission found that there is deficiency in service/unfair trade practice on the part of the Opposite Parties and hence the Complainant sustained difficulties. Therefore, the Complainant deserves to get compensation and cost.
In the result, the complaint is partly allowed and
(A) The Opposite Party is directed to return the amount of Rs.1455/-(Rupees One Thousand Four Hundred and Fifty Five only) which is collected in excess from the Complainant.
(B).The Opposite Parties are directed to pay Rs.5,000/- (Rupees Five Thousand only) as compensation to the Complainant
(C)The Opposite Party is directed to pay Rs.3,000/- (Rupees Three Thousand only) towards cost.
The Opposite Party is directed to comply this order within one month from the date of receiving the copy of the order, failing which the Complainant is entitled to get interest @ 6% annum for the above amount from the date of this order till the realization of the amount.
Dictated to the Confidential Assistant, transcribed by him and corrected by me and Pronounced in the Open Commission on this the 21st day of July 2022.
Date of Filing: 02.03.2022.
PRESIDENT :Sd/-
MEMBER :Sd/-
MEMBER :Sd/-
APPENDIX.
Witness for the complainant:-
PW1. Ismail. A. Driver.
Witness for the Opposite Party:-
Nil.
Exhibits for the Complainant:-
A1. Statement of Account.
A2. Copy of Advertisement Notice.
Exhibits for the Opposite Party:-
Nil.
PRESIDENT :Sd/-
MEMBER :Sd/-
MEMBER :Sd/-
/True Copy/
Sd/-
ASSISTANT REGISTRAR
CDRC, WAYANAD.
