Date of Filing:19/08/2020

Date of Order:07/02/2022

BEFORE THE BANGALORE I ADDITIONAL DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION SHANTHINAGAR BANGALORE - 27.

Dated:07^th DAY OF FEBRUARY 2022

PRESENT

SRI.H.R. SRINIVAS, B.Sc., LL.B. Retd. Prl. District & Sessions Judge And PRESIDENT

SMT.SHARAVATHI S.M., B.A., LL.B., MEMBER

COMPLAINT NO.534/2020

Vs

ORDER

SRI.H.R. SRINIVAS.  PRESIDENT

1.     This is the Complaint filed by the Complainant against the Opposite Party (herein referred to as OP) under section 35 of the Consumer Protection Act 2019 for the deficiency in service in increasing the interest on the personal loan obtained by him without his consent and for closing the loan account in respect of the said loan and also for compensation of Rs.5,00,000/- as penalty for cheating for suffering mental torture and loss of time and other reliefs as the Hon’ble District Commission deems fit.

2.     The brief facts of the complaint are that; the complainant obtained personal loan of Rs.4,01,000/- from OP in the month of July 2019 and the said money was transferred to his account standing with HDFC Bank on 05.07.2019.  The personal loan was granted to him with the interest rate of 20.22% repayable in 48 equated months installments from 02.09.2019 onwards at Rs.15,112/- EMI to be deducted from his HDFC account.

3.     During month of May 2020, he received a call from sale person of OP informing him and offering him reduction in EMI from Rs.15,112/- to Rs.10.632/- and he agreed for the same as the EMI would get reduced.  The said person did not inform him that the rate of interest would be increased from 20.22% to 32.86% and the tenure of the EMI would be increased from 48 to 84 months. Upon seeing the same, he tried to contact the OP customer care but there was no response. From 11.06.2020, he was not at all getting any response from OP instead, they claimed that he has given consent for changes made he has corresponded with them over email informing them that he has not agreed for the change in the interest. 

4.     He also wrote a letter over email on 13.07.2020 regarding the same and also requested the OP to send the call records in details of the sale person who informed him regarding the reduction of the EMI amount. There was no response at all from him.  When he did not pay the amount he received a call as to why the EMI for the month of August is not paid. He explained the same regarding the dispute in respect of the changes made in the loan and the person of OP very rudely behaved as if complainant has stole the money from Bajaj.

5.     As per the loan sanction document the amount was of Rs.4,01,000/- with interest 20.22% payable in 48 months at the rate of Rs.15,112/- and the total amount payable was Rs.7,25,376/-.  Due to the change made by the OP, the extent of loan amount is of Rs.3,88,283/-, the rate of interest enhanced to 32.86% and the tenure was 84 months. The 1^st EMI Rs.14,885/- the 2^nd EMI upto 24^th  Rs.10,632/- and from 25^th EMI to 84^th EMI Rs.13,253/-. The amount disbursed mentioned as 21.05.2020 and the total amount paid is Rs.14,885/-. The personal loans are ment to bailout from the crises and help the persons to pay the amount in easy EMI’s.  whereas act of OP is fraudulent with abnormal rate of interest. Hence there is deficiency in service and prayed the forum to cancel the new loan bearing account No.404TPFFZ31368 for amount of Rs.3,88,283/- and for compensation of Rs.5,00,000/- for the suffering.

6.     Upon the service of notice OP appeared before the commission and filed version and contended that the complaint filed by the complainant is false, frivolous and filed with mala-fide intention and based on wrong information and is not maintainable and liable to be rejected with costs.  Further complaint has not made any communication with OP and directly approached this forum.  It is denied that and dispute all the contentions, claims, demands, allegations, averments, imputations and insinuations of the complaint against the OPs and the present matter is purely contractual and commercial in nature. Complainant has obtained loan from OP and as such, the relation between the complainant and OP is that of debtor and creditor and not a consumer and service provider and hence the complaint is not maintainable. The complainant has approached the commission by suppressing material facts. 

7.     The complainant has himself foreclosed the loan account No.404HTEW457183 on 21.05.2020 by giving his consent over the call to the caller agent of the OP and agreeing to the terms and conditions offer an d benefits of the new loan account, by clicking the proceed button in the experia portal and sharing the OTP which was received at the registered mobile of the complainant i.e. 8884111638 and other credentials with OP telecaller agent. The loan account 404TPFFZ03136 was booked in the name of the complainant for Rs.3,88,283/- post which the E-agreement has been generated.  Complainant himself has given consent and availed the said loan which was explained to him and hence there is no deficiency in service on its part.   Denying all the allegations made against it prayed the forum to dismiss the complaint. 

8.     Further it is contended that complainant has no cause of action to file the complaint. The said loan has been booked only after the complainant given his consent for converting the PLCS higher ticket size to ELCS Tyre one flexi loan.  OPs are following the RBI guidelines as per the policy and is entitle to collect legitimate dues from its customer.  Since the previous loan account have been reactivated in the system complainant is liable to pay the o/s dues in order to close the same. 

9.     In order to prove the case, both the parties have filed their affidavit evidence and produced documents. Arguments Heard. The following points arise for our consideration:-

1) Whether the complainant has proved deficiency in service on the part of the Opposite Party?

2) Whether the complainant is entitled to the relief prayed for in the complaint?

10.   Our answers to the above points are:-

POINT NO.1 :   In the Affirmative.

POINT NO.2 :   Partly in the Affirmative.

                        For the following.

REASONS

POINT No.1:-

11.   It is not in dispute that the complainant borrowed a personal loan of Rs.4,01,000/- on July 2019 with the loan account bearing 404HTEW457183 and the said amount was transferred to his account standing with HDFC Bank on 05.07.2019 and the complainant agreed to pay interest at 20.22% with a tenure of 48 months with an EMI of Rs.15,112/-. It is the specific case of the complainant that, one of the sale persons of OP informed that he will reduce the EMI from Rs.15,112/- to Rs.10,632/- for which he agreed whereas, the said person did not inform anything regarding the extension of the EMI time limit from 48 months to 84 months and interest from 20.22 % to 32.86%. 

12.   He came to know afterwards that the said loan has been created for the purpose of statistics and that he had not agreed to pay interest at 32.86% with a span of 84 months. In the prayer, he has also sought for reverting to the earlier loan on the same terms and conditions. 

13.   In one of his letter Ex.P2 dated 11.06.2020 he has requested the OP to revert back to earlier loan with EMI for 48 months and to pay Rs.15,112/- per month. There also, he has stated that no information was given to him regarding the change of rate of interest and also the extension of the term i.e. EMI.  After series of correspondences produced, one can come to the conclusion that OP did not agree to revert the same.  It is to be noted here that, on 21.05.2020 the 2^nd loan has been sanctioned by book adjustment.  Whereas no amount has been paid loan on that day and it is only balance of the earlier loan account a new account was created. 

14.   From the series of email correspondences, it becomes clear that, the complainant has not agreed for paying interest at 32.86% per annum and for extension of the period of the payment It is of common knowledge and of an ordinary prudence that no person would agree to pay a higher rate of interest when he was getting the loan at a reduced rate of interest. Further OP has not produced the details of the conversation said to have taken place between the complainant and sale representative though it has stated that over the telephone the said transactions has taken place with consent of the complainant and that agreement has been accepted by the complainant.

15.   In view of the complainant not agreeing for paying the higher interest on the loan, and not agreeing to have the extended months for the payment of the loan, and in view of the OP not placing any materials before this commission to show that the complainant was informed regarding higher rate of interest and the extended period of monthly installment , we are of the opinion that OP has played unfair trade practice against the complainant and hence we answer POINT NO.1 IN THE AFFIRMATIVE.

POINT NO.2:

16.   Complainant has sought for reversion of the loan to the earlier terms and conditions by cancelling the present loan and also sought for a compensation of Rs.5,00,000/- lakhs for causing mental torture and loss of time and rude behavior of OP’s men. As stated while answering Point No.1, in the interest of justice equity the loan has to be reverted to the earlier terms and condition on which the complainant was given loan under loan account No.404HTEW457183 instead of loan account No.404TPFFZ03136 with an interest rate of 20.22% on the balance of amount starting from 21.05.2020 and the complainant has to make good the overdue instalment within 6 months from this day along with interest as agreed i.e. 20.22% and also regularize the installments at the end of 6 months and pay the entire amount as per the terms and conditions of the first loan sanctioned i.e. within 48 months commencing from 25.07.2019 without any penal interest.

17.   In view of the OP not agreeing to revert back to the earlier loan and levying interest at 32.86% and further demanding the money from the complainant at the new rate of interest amounts to cruelty, causing mental agony, stress and strain for which we direct OPs to pay a sum of Rs.25,000/- as damages and Rs.10,000/- towards the cost. In case the complainant wishes to adjust the compensation and the cost for the EMI’s he has to make written request with the OP and the OP has to inform its decision within 15 days from the date of receipt of such a request. Hence we answer POINT NO.2 PARTLY IN THE AFFIRMATIVE and pass the following:-

ORDER

1. The Complaint is allowed in part with cost.
2. OP i.e. Bajaj Finance Limited represented by its Branch Manager/Authorized signatory is hereby directed to reverted to the earlier terms and condition on which the complainant was given loan under loan account No.404HTEW457183 instead of loan account No.404TPFFZ03136 with an interest rate of 20.22% on the balance of amount starting from 21.05.2020 and the complainant has to make good the overdue instalment within 6 months from this day along with interest as agreed i.e. 20.22% and also regularize the installments at the end of 6 months and pay the entire amount as per the terms and conditions of the first loan sanctioned i.e. within 48 months commencing from 25.07.2019 without any penal interest.
3. Further OP is hereby directed to pay a sum of Rs.25,000/- towards damages as compensation and Rs.10,000/- towards cost of the litigation expenses.
4. OP is hereby directed to comply the above order within 30 days from the date of receipt of this order and submit the compliance report to this commission within 15 days thereafter.
5. Send a copy of this order to both parties free of cost. 

   Note: You are hereby directed to take back the extra copies of the Complaints/version, documents and records filed by you within one month from the date of receipt of this order.

(Dictated to the Stenographer over the computer, typed by him, corrected and then pronounced by us in the Open Commission on this day the 7^th day of February 2022)

MEMBER                                PRESIDENT

ANNEXURES

1. Witness examined on behalf of the Complainant/s by way of affidavit:

Copies of Documents produced on behalf of Complainant/s:

Ex P1: Copy of the screenshot from Bajaj account i.e. OP

Ex P2: Copy of email conversation with OP

Ex P3: Copy of loan repayment of schedule.

2. Witness examined on behalf of the Opposite party/s by way of affidavit:

RW-1: Smt. Veena Y.M., Legal counsel of OP.

Copies of Documents produced on behalf of Opposite Party/s

Ex R1: Copy of the power of attorney executed by Op to adduce evidence.

Ex R2: Copy of the terms and conditions letter.

Ex R3: Copy of the account statement.

Ex R4: Copy of the loan application.

MEMBER                PRESIDENT

RAK*