NEWS & ADVICE : PERSONAL LOAN
ICICI directed to compensate for negligence
By Vaibhav Aggarwal
Mar 2, 2009
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There is yet another case of deficiency in services and the bank has been directed to compensate for the same. ICICI Bank is asked to pay Rs 1.5 lakh for forcibly taking possession of a car by its customer who had been regularly paying the EMI for the loan taken to for the car.

A Chandigarh-based resident, Sunita Verma has filed a complaint with the Consumer Protection Act demanding the bank to restore her car or return the entire money that she has repaid along with interest. Ms Verma informed that she had taken a loan of Rs 3.4 lakh from ICICI Bank and the money had to be paid in 48 EMIs amounting to Rs 9,635. She had been paying the EMIs from June 10th, 2006 but surprisingly in April 2007, some people from the bank came and forcibly took away her car.

Commenting on the issue, the forum said, "The bank should resort to procedure recognized by law to take possession of vehicles in cases where the borrower may have committed default in payment of the instalments instead of taking resort to strong-arm tactics."

However on its defense, ICICI Bank said that at the time of availing the loan, Sunita had promised to pay all the installments on due date and abide by the bank's rules which she had failed to follow. Further the car was not taken forcibly but rather surrendered by Sunita only.

Investigating on the details, the forum found that Verma has defaulted on one EMI for which the bank had levied overdue charges and cheque bouncing charges etc."To our mind the action of forcible repossession of the vehicle in question by bank and thereafter selling the same without any notice amounts to deficiency in service and unfair trade practice," the forum added.

This is not the first time ICICI has been caught to pay for its deficiency in services. Earlier also the bank has paid for its negligence.

 


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