gold loan

sukkanyah (Querist) 01 October 2010 This query is : Resolved
I had taken a loan against my gold from MUTHOOT FINANCE,N BESIDES PAYNG THE USUAL AMOUNT FOR INTEREST EVERY MNTH,THESE PEOPLE WUD TAKE ADDITIONAL SERVICE CHARGES OF Rs 200 frm me every mnth.n now after two yers they suggested to convert my loan into another scheme claimng tat the rate of interest wud be lesssr n i cud continue to enjoy better product features.now after three mnths of paymnts,suddenly they say the rate of interest is hiked n now i hav to pay more n i wnt get any difference in the value of my gold that the market determines.PLZ HELP ME,I THNK I M BEING DEFRAUDD.

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R.Ramachandran (Expert) 01 October 2010
Dear Sukkanyah,
When you enter into any contract with your open eyes, you cannot be said to be getting defrauded.
No company will ever come into the market purely with the intention to help you and that too without a cost to you.
It is for you to either agree to the contract or not to enter into the contract if it does not suit you.
The customers have to be careful always.

s.subramanian (Expert) 01 October 2010
If they are cheating it is open to you lodge a criminal complaint for cheating against them under Sec.420 IPC> Approach the local police and do it immediately.

R.Ranganathan (Expert) 01 October 2010
If you feel you have been defrauded and cheated then you can file a criminal complaint against them under Cheating and also criminal breach of trust since you had been asked to change the terms in between. Further for the additional service charges you have every right to approach both the criminal court and also the consumer court since I am sure that there will be no contract or agreement for the said service charges which are illegal and against the RBI rules and regulations.

Kirti Kar Tripathi (Expert) 01 October 2010
I agrre with Mr. Rangnathan

Parthasarathi Loganathan (Expert) 01 October 2010
This is against Fair Practices code devised by RBI. Please arrange to close the gold loan by raising temporary loan from your close friends and relatives and repay them by pledging your jewels in any nationalised bank where interest rate on jewel loans is the lowest in the industry. That is the only solution.