National Consumer panel directs bank to pay Rs 6,000 to customer

NAGPUR: The National Consumer Disputes Redressal Commission (NCDRC) has upheld a city consumer’s plea against HDFC Bank for failing to comply with the District Consumer Forum’s order in car loan case. The NCDRC has directed the bank to pay Rs6,000 to the applicant under Consumer Protection Act (CPA).
Shrikant Prabhune had moved District Consumer Forum in 2008 against the bank for converting his car loan account into an overdraft account, forcing him to pay 19% interest instead of 11.5%.The forum upheld Prabhune’s plea and asked the bank to restore car loan account in 30 days and close overdraft account. It also asked the bank to pay Rs10,000 as compensation for mental and physical agony to Prabhune, and pay Rs2,000 towards cost for the complaint.
However, since the bank did not comply with the forum’s orders in 30 days, Prabhune filed an execution application (contempt) before the forum under Section 27 of CPA. However, the bank complied with the forum orders after 305 days as against 30 days. The forum chose not to impose any punishment and granted meagre compensation of Rs1,000. Hence, Prabhune approached State Consumer Commission (circuit bench), Nagpur, but here too his application was dismissed.
Not satisfied, Prabhune filed a revision petition with NCDRC in 2012. Justice DK Jain, president, and M Shreesha, member, NCDRC, recently held that as per Section 27 of the CPA, once the forum concerned comes to the conclusion that a person, against whom a complaint had been made, failed to comply with its order then it has no discretion to levy lesser fine, which it did by asking the bank to pay Rs1,000 cost to Prabhune.
The NCDRC upheld Prabhune’s revision petition and confirmed that his say and objections were correct. NCDRC enhanced compensation to Rs5,000 and also directed payment of cost Rs1,000 by the bank in four weeks.
Prabhune had taken Rs2.44 lakh car loan at 11.5% interest in July 2006 from the bank. In July 2007, bank staff gave some misleading information to Prabhune and converted his car loan into car overdraft account by obtaining his signatures on blank documents.
On receipt of the bank letter in August 2007, Prabhune was shocked to find that he would be charged 19.5% interest. “I realized I would pay an additional Rs1.75 lakh compared to my earlier loan. I requested the bank to restore my earlier loan account stating that I was misled but the bank did not listen,” claims Prabhune.
“I feel that the order will help many consumers suffering due to similar non-compliance. Despite stringent legal provisions, banks are not imposing punishment,” said consumer rights activist Avinash Prabhune, who appeared for the petitioner.