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Thursday, March 28

Bank asked to close consumer’s loan

Bank asked to close consumer’s loan


Mangalore Today News Network

Mangaluru, Jan 19, 2015: Dakshina Kannada District Consumer Disputes Redressal Forum has asked Corporation Bank’s Panemangaluru branch to pay compensation of Rs. 10,000 and litigation cost of Rs. 5,000 to N. Sadashiva Aithal of Melkar near Panemangaluru.

In a recent order, the forum found that the bank, which had issued legal notice to the consumer asking him to repay the outstanding loan and had threatened to sell the property pledged, had in fact collected more money than it should have.

Hearing a case referred back from State Consumer Commission to reconsider, the forum pointed out that the bank had accepted that it had collected Rs. 8,811 more from the consumer who had obtained a housing loan of Rs. 1.20 lakh from the bank’s branch. But the bank said it would adjust the amount to an outstanding agricultural loan of the consumer.

The forum pointed out that the loan obtained in 2001 had been repaid by December 31, 2010. The forum did not accept the contention of the bank that the case where interest had been debited could not be reopened as per the Section 21 of Banking Regulation Act.

Regarding the adjusting of the loan to agricultural loan, the forum member Lavanya M. Rai said more interest has been collected in this case also considering waiver of loans announced by the Centre and lower interest prescribed in a Union budget. She said documents placed on record had shown this.

The forum asked the bank’s branch to release the original documents to the consumer and pay Rs. 100 per day for any delay in this regard.


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