Andhra Pradesh - Hyderabad   

Forum penalises ICICI Bank Consumer Notes

HYDERABAD: The A.P. State Consumer Disputes Redressal Commission (APSCDRC) penalised the Nellore branch of ICICI Bank for seizing a vehicle despite the customer’s willingness to pay the remaining loan instalments.

The State Commission upheld the verdict of Chittoor District Consumer Forum, which ordered the bank to refund Rs. 25,836, the amount paid by the customer, together with Rs. 10,000 as compensation and court costs.

J. Hari Krishna, a resident of Tiruapti, purchased a bike for Rs. 48,000 with a loan from Tata Finance Company in April 2004. He made an initial payment and had given 25 post-dated cheques for the remaining instalments. He understood that his cheques stopped getting encashed after one year. Then, agents of ICICI Bank visited him and demanded the remaining payment, saying that the finance company was merged with the bank. A startled Mr. Krishna immediately paid Rs. 6,456 towards four instalments and requested them to return his cheques. However, the cheques were never returned and the agents took away the vehicle after five months without any information. In spite of his repeated requests that he would pay the balance, the vehicle was not released. Legal notices given by him were unanswered. Hence, Mr. Krishna moved the District Forum seeking repayment of his money and compensation.

The bank argued that it did not have any cheques with it and the seizure was completely legal since vehicle can be repossessed from ‘defaulters’ as per Hire Purchase Agreement. Arguments of the bank were not appreciated by the District Forum since it was clear that it gave no notice before the seizure or sale of the bike. The ICICI has appealed against the judgement in the State Commission only to be told that its acts were nothing but illegal. The APSCDRC has endorsed decision of the District Forum and ordered the bank to comply with it within four weeks.

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