ICICI Bank directed by consumer forum to pay Rs 55000 to customer

A district consumer forum from Telangana has ordered ICICI bank to pay Rs 55,000 to a consumer for failing to inform him about resetting of rate of interest on home loan. 
 
In 2006, the complainant, Raj Kumar R had availed a home loan of Rs30 lakh with a floating rate of interest from ICICI Bank located in Financial District, Gachibowli. At that time, the interest rate was 9.25% with fixed EMI of Rs 38410 payable for 120 months.
 
The complainant diligently paid EMIs regularly and was under the impression that the bank would stop collecting EMIs at the end of 120th month. He was shocked when he checked his bank statements and noticed that he paid a total sum of Rs 49.73 lakh in 136 months. He sought details from the bank.
 
He submitted that the displayed rate of interest in loan account (14.85%) was far higher than the agreed upon rate of interest and claimed that the bank never informed him about the change in interest rate. Despite issuing several notices to the bank, his concerns were not addressed and so he filed the complaint.
 
The bank told that the complainant had agreed on a floating interest rate which was subject to change as mentioned in the loan agreement and sanction letter. The bank submitted that the complainant was kept informed every time there was a rate change and that they have not collected any excess EMI from the complainant.
 
The consumer court noticed that the bank had not filed any evidence to support their claim that they had sent periodic intimations to the complainant about interest change.
 
The bench said that it is difficult to believe the bank’s stand in the absence of documentary proof of communication with the complainant.

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