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.



To continue

Sign Up or Sign In


We are listening!

Solve the equation and enter in the Captcha field.

Changes in Our Business Model
Greetings from Moneylife Advisory Services
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • We will have to suspend the restructuring tool.
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
Debashis Basu