Mumbai: The District Consumer Disputes Redressal Commission has directed Union Bank of India to refund processing charges with 9% interest to a consumer, in an order dated July 26, for charging the amount despite advertising a waiver during its festive offer, as mentioned in the home loan sanction letter provided to the customer.
Loan availed during 2019 festive period offer
The complainant, Amit Gosar, a Malad resident, availed a home loan from the bank that was sanctioned on December 7, 2019 during a festive period offer. As per the offer, a 100% waiver on processing charges was applicable for the home loan scheme from September 6 to December 31, 2019, under Union Home and union miles schemes. When the bank failed to refund the money, Gosar issued a legal notice, which went unanswered.
Subsequently, he filed a complaint with the consumer commission, which was also ignored, leading to an ex-parte order. The commission observed that as per the entry of statement, "it is proved" that the bank "debited an amount of Rs17,700 from the complainant’s account for the purpose of processing charges on December 12, 2019" and found the bank's actions to be a “deficiency in service and unfair trade practice”, as they should have waived the charges according to their festive offer and sanction letter.
The commission directed Union Bank of India to refund the processing charges with interest per annum, starting from the date of deduction. Additionally, they ordered compensation of Rs20,000 towards mental agony and litigation costs suffered by Gosar.
