Tamil Nadu

North Chennai

157/2013

K.M. Sulaiman Kalam Kode, - Complainant(s)

Versus

g.E.Financial financial Services Ltd, rep. by its Authorised Signatory, - Opp.Party(s)

A.Sumathy

25 Jul 2016

ORDER

 

                                                            Complaint presented on:  19.08.2013

                                                               Order pronounced on:  25.07.2016

 

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (NORTH)

    2^nd Floor, Frazer Bridge Road, V.O.C.Nagar, Park Town, Chennai-3

 

PRESENT: THIRU.K.JAYABALAN, B.Sc., B.L.,        PRESIDENT

                    TMT.T.KALAIYARASI, B.A.B.L.,           MEMBER II

 

MONDAY THE 25^th    DAY OF JULY 2016

 

C.C.NO.157/2013

 

 

K.M.Sulaiman Kalam Kode Mohamed,

No.15-B, Gujji Main Road,

Anna Nagar,

Chennai – 102.

                                                                                          ..... Complainant

 

..Vs..

 

1.GE Money Financial Services Ltd.,

Rep. by its Authorised Signatory,

Old No.41, New  No.116,

Nelson Manickam Road,

Aminjikarai,

Chennai – 600 029.

 

2.GE Money Financial Services Ltd.,

Rep. by its Authorised Signatory,

Unit No.401 & 402, 4^th Floor,Aggarwal Millennium Tower,

E-1,2,3, Netaji Subash Place,

Pitampura, New Delhi – 110 034.

	.....Opposite Parties

Date of complaint                                 : 22.08.2013

Counsel for Complainant                      : M/s. A.Sumathy & J.Ranjani Devi        

Counsel for opposite parties                   : Ex – parte

 

O R D E R

 

BY PRESIDENT THIRU. K.JAYABALAN B.Sc., B.L.,

          This complaint is filed by the complainant u/s 12 of the Consumer Protection Act.1986.

1. THE COMPLAINT IS IN BRIEF:

        The Complainant obtained loan against his property bearing A/C No. HMAH00002934 dated 17.10.2007 for a sum of Rs.33,25,000/- and subsequently got top-up the same loan on 03.10.2008 for a sum of Rs.61,13,674/-. He also got another loan against his property bearing A/C No.HMAH00002939 dated 06.10.2007 for a sum of Rs.16,75,000/-. The Opposite Parties for loan account No.HMAH0002934 letter was issued on 24.07.2008 and the interest rate was 0.75% and the tenure was increased from 108 to 113 months, and on 27.08.2008 increased to 1.5% and tenure was 113 to 119 and on 17.05.2011 increased 0.75% and the tenure was increased from 119 to 214 months. For the loan account No.HMAH00002939 dated 26.08.2008 increased 0.75% and dated 27.08.2008 increased to 1.5% and the tenure was 108 to 118. Without assigning any reasons the interest rate was enhanced and when the same was questioned by him, no proper reply was received from them. This made the Complainant to suffer severe mental torture and agony, so the Complainant decided to foreclose the account and tried to obtain loan from other banks.  The same was informed to the Opposite Parties. The foreclosure charges was 2% along with principle outstanding amount. They refused and demanded 4.5% foreclosure charges. It was not able to accept, but under protest the amount was paid on 31.07.2011/-. The difference of amount was a sum of Rs.1,63,620/- and puts the Complainant  to heavy loss in his business and  he could not concentrate in his work. Therefore under protest, the Complainant paid the amount and now approached this Hon’ble Forum for redressing his grievance. The collection of 4.5% foreclosure charges than the agreed 2% charges in the sanctioned letter is unfair trade practice. Hence the Complainant sent letter dated 28.07.2011 expressing his grievances for collection 4.5% charges. Hence the Complainant filed this Complaint for refund of the excess foreclosure charges of Rs.1,63,620/- with 12% interest from 01.08.2011 to 30.06.2013 and also for compensation with cost of the Complaint.

          2. The 2^nd Opposite Party received notice did not appear and hence he was set ex-parte. The 1^st Opposite Party was set ex-parte after complying due process of law.

          3. The Complainant filed proof affidavit and Ex.A1 to Ex.A8 were marked. The Complainant also filed written arguments and oral arguments heard.       

4. POINTS FOR CONSIDERATION:

          1. Whether there is deficiency in service on the part of the opposite parties?

          2. Whether the complainant is entitled to any relief? If so to what relief?

5. POINT NO: 1

          The admitted facts of both the parties from the evidence of the Complainant and the marked documents, the Complainant obtained loan against his property bearing A/C No. HMAH00002934 dated 17.10.2007 for a sum of Rs.33,25,000/- and subsequently got top-up the same loan on 03.10.2008 for a sum of Rs.61,13,674/- and  he also got another loan against his property bearing A/C No.HMAH00002939 dated 06.10.2007 for a sum of Rs.16,75,000/- from the Opposite Parties.

          6. Ex.A1 is the loan sanctioned letter for a sum of Rs.16,75,000/- at the annual rate of interest 14%  and the loan tenure repayment period is 180 months at the rate of 27,359/- per month. Ex.A2 is the loan details issued by the Opposite Parties to the Complainant.  Admittedly the Complainant has foreclosed the above said loans under Ex.A7 on 30.07.2011.   

7.  The only contention of the Complainant is that at the time of foreclosure as per the schedule of the charges mentioned in Ex.A1, the Opposite Parties are entitled to collect only 2% of the  principal  outstanding amount and however the Opposite Parties collected 4.5% towards foreclosure charges unlawfully and hence the Complainant suffered with mental agony due to the unfair trade practice of the Opposite Parties and therefore he has filed this Complaint to refund the excess amount paid by him  for foreclosure and also compensation for mental agony with cost of the Complaint. 

8. As soon as the Complainant disclosed his intention to the Opposite Parties for foreclosure of loans, the Opposite Parties communicated Ex.A4 and Ex.A5 to the Complainant with foreclosure amount payable by the Complainant. The Complainant paid the amount as demanded by the Opposite Party in Ex.A7 dated 30.07.2011 for a sum of Rs.58,30,136/- and a sum of Rs.13,63,712/- and thereby closed the loan obtained from the Opposite Parties.

9. In Ex.A1 on the reverse page under the headings of schedule of charges, processing charges and foreclosure charges are mentioned. In the foreclosure charges headings more than 48 months on books 2% on principal outstanding (POS) shall be charged. However, the Opposite Parties charged 4.5% as against his own document in Ex.A1, is nothing but an unfair trade practice of the Opposite Parties by collecting an excess amount of Rs.1,63,620/- in the foreclosure  charges. Therefore we hold that the Opposite Parties have committed unfair trade practice by way of Deficiency in Service and accordingly this point is answered.

10. POINT NO: 2

          The Opposite Parties have collected an excess amount of Rs.1,63,620/- by way of foreclosure charges and for the said amount the Complainant is entitled to get refund from the Opposite Parties and accordingly it can be ordered. Considering the circumstances of the case for the unfair trade practice committed by the Opposite Parties and  thereby caused mental agony to the Complainant, it would be appropriate to order a sum of Rs. 1,00,000/- as compensation besides a sum of Rs.5,000/- litigation expenses.

In the result the Complaint is partly allowed. The Opposite Parties jointly or severally are ordered to refund a sum of Rs.1,63,620/-(Rupees one lakh sixty three thousand six hundred and twenty only)   to the Complainant and also to pay a sum of Rs.1,00,000/- (Rupees one lakh only) towards compensation for mental agony, besides a sum of Rs.5,000/- (Rupees five thousand only) towards litigation expenses.

The above amount shall be paid to the complainant within 6 weeks from the date of receipt of the copy of this order failing which the above said amount shall carry 9% interest till the date of payment.

          Dictated to the Steno-Typist transcribed and typed by her corrected and pronounced by us on this 25^th    day of July 2016.

MEMBER – II                                                               PRESIDENT

 

LIST OF DOCUMENTS FILED BY THE COMPLAINANT:

Ex.A1 dated 06.10.2007                   Copy of the loan terms and conditions issued by

                                                the Opposite Parties

 

Ex.A2 dated NIL                     Copy of the loan details issued by the Opposite

                                                Parties

 

Ex.A3 dated 27.07.2011                   Copy of the Complaint given to RBI

 

Ex.A4 dated 28.07.2011                   Copy of the foreclosure letter issued by the

                                                Opposite Party

 

Ex.A5 dated 28.07.2011                                      …do…

 

Ex.A6 dated 28.07.2011                   Copy of the letter sent to the 1^st Opposite Party

 

Ex.A7 dated 30.07.2011                   Copy of the payment receipt issued by Opposite

                                                Party

 

Ex.A8 dated 04.08.2011                   Copy of the reply given by the Opposite Party    

 

 

 

 

MEMBER – II                                                               PRESIDENT