ICICI Bank ordered to pay Rs 50K compensation to customer

ICICI bank

The District Consumer’s Dispute Redressal Forum (DCRF) here has directed ICICI Bank to pay a compensation of Rs 50,000 to the complainant for causing physical and mental suffering to him by charging extra interest on his housing loan.
Forum president Umesh Jhawalikar and member N D Kadam in their order last week observed that the Bank had been deficient in their services, and asked ICICI to make the payment within a period of three months, or else pay interest at the rate of 12 per cent per annum to the complainant as delay charges.

The Forum also ordered ICICI Bank to deduct the excess interest over and above the 8 pc fixed agreed from the principal amount and give a certificate to the complainant.

In his complaint Vishnu R Saravade told the Forum that he had taken a housing loan of Rs 13,50,000 at a fixed interest rate of 8 pc pa on the agreement that he would pay an easy monthly instalment (EMI) of Rs 12,487 for 192 months.

He alleged that the bank, however, did not honour the agreement and charged him interest at a higher rate of 8.86 pc pa and also increased the interest rate each year.

He informed the Forum that the bank charged him EMI at the rate of Rs 13,637 which was in excess by Rs 1,150, and hence cited deficiency in services by the Bank.

He also sought refund of the excess amount and compensation for causing him suffering and legal expenses from the bank, all of which were granted by the Forum in its order.

In support of his claim for Rs 17,03,125, and the refund of excess interest charged from him, he furnished documents to the Forum, which accepted them and dismissed the Bank’s argument.