Customers not updated on changed interest rate of loan, bank to pay relief

The UT State Consumer Disputes Redressal Commission has directed the ICICI Bank to pay Rs 35,000 each to two consumers for not informing them about the change in rate of interest from time to time for several years.

The commission passed the orders while deciding the appeals filed by Rajiv Aggarwal and Kamal Goel of Panchkula through advocate Pankaj Changothia. The two consumers sought enhancement of the compensation awarded by the District Consumer Commission while allowing their complaints against the bank.

They had filed complaints before the district commission alleging deficiency in service on the part of the bank in overcharging interest rate and also not giving prior information about the changes in the interest rates.

The district commission had accepted the complaints and awarded Rs 7,000 as compensation and Rs 7,000 as litigation costs to each of them.

Both the complainants then filed appeal before the state commission.

The bank contended that it had informed the consumers about the changes in the rate of interest of their loans.

Chandgothia contended that the bank had not produced any documentary evidence of such information or proof of dispatch of any such letter. By not giving prior information about the changes in interest rate, the bank caused tremendous mental agony and harassment to its customers as they were denied their right to manage their finances or option to shift the loan to some other financial institution.

The state commission held that the bank failed to notify the consumers on any changes in the applicable rate of interest as per the orders of the Reserve Bank of India.

Observing that the compensation and cost of litigation awarded by the district commission were on the lower side, the state commission, comprising Justice Raj Shekhar Attri (retd) as its president and Rajesh Arya as member, directed the bank to pay Rs 20,000 as compensation and Rs 15,000 as litigation cost in each case.

Chandigarh