IDBI to pay Rs 50,000 compensation for harassing a customer

IDBI has been directed by the District Consumer Disputes Redressal Forum to pay Rs 50,000 as compensation for harassing a customer. The petitioner had taken a home loan of Rs 13 lakh in 2004. The bank has been charged of raising the rate of interest illegally therefore has been directed to revamp the loan account and not change the rate of interest for the first three years as per the agreement. The forum has also asked the bank to pay Rs 5,500 as litigation costs.

The complainant, Pardeep Tayal, a resident of Sector 35, took a housing loan of Rs 13 lakh in 2004, which was to be paid back in 96 equated monthly installments (EMIs) of Rs 17,724.

Bank has mentioned in the letter delivered to him that the interest rate will be reviewed at the end of three years from the date of final disbursement. But, he was then sent three letters intimating that the rate of interest has been revised to 7.5 per cent, 8 per cent and 9.5 per cent, respectively.

Claiming the action of the bank in reviewing and enhancing the interest rate before the expiry of three years as unwarranted and amounting to deficiency in service, hence the complainant moved the forum.

The Bank, in its response, stated that the complainant had chosen for a floating rate of 7 per cent, which was subject to resetting of interest rate as per the home loan agreement.

The forum established that as per the agreement, there cannot be any change in interest rate in the first three years, which is to remain at 7 per cent. The forum held: “The bank cannot just issue a letter and change the terms of the agreement to the disadvantage of the complainant.”