Failing to provide any detailed statement of a client's loan account schedule, a bank was directed by district consumer disputes redressal forum to pay `25,000 as compensation for deficient services and unfair trade practices.
Disposing of a complaint filed by Jaswant Singh, a resident of Sector 30, city consumer forum also directed State Bank of India (SBI), the bank in question, to supply a "complete statement of account in respect of his loan account thereby reflecting every entry with regard to deductions already made/to be made towards interest as well as principle amount on the repayment of loan since the date of first sanction."
Jaswant Singh was sanctioned a housing loan of `6.90 lakhs in September 2006 at an EMI of `7,100 for a period of 15 years.
Singh has alleged that the bank never informed him of any change in the terms and conditions of the housing loan or of the change in interest rate. Also no repayment has been adjusted till 2013 towards the principle amount on which loan was availed, despite complainant making regular EMI payments for the last seven years.
Jaswant Singh moved the consumer forum saying that the housing loan sanctioned by the bank was on a fixed rate of interest and enhancement in the rate of interest by the bank was wrong and illegal.
Denying any deficiency in services, SBI said Singh along with two other borrowers had approached for financial help. The bank had informed them of loan being subject to terms and conditions of the agreement and EMI calculated as per the prevailing rate of interest, which was subject to change from time to time.
The bank said Singh had opted for floating rate of interest in the agreement signed between the parties and hence the EMIs of the loan was subject to change as per the change in the rate of interest and RBI guidelines.
The consumer forum presided by Rajan Dewan on January 29 held, "The complainant does not seem to fathom the reason for non-reduction of loan. Here, we definitely find the bank deficient in service as they have not educated the customer about the loan amount and allocation/adjustment of the amounts paid by him towards the interest and principal. Bank has not even provided any detailed statement of account/amortisation schedule to the complainant. For this discrepancy, we are inclined to hold the bank liable for deficiency in service and unfair trade practice.”