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Jayaram (RETD. Education officer)     02 August 2008

consumer Vs Bank

Person A has obtained personal loan from a bank and signed the document to deduct the loan amount from the salary thro auto debit. the salary is credited in X bank where he has obtained personal loan. In the mean time before the loan tenure(48 months) he has decided to retire voluntarily.(Still 38 months of loan tenure is existing at the time of retirement) the loan amount is still pending to clear. the auto debit thro salary is stopped automatically because the salary is not credited in his account because of his retirement..In the Mean time A has obtained a portion of i.e.,10% retirement benefits which was credited in the same account. The bank manager without getting consent letter from the loanee using the auto debit tecniques deducted the entire loan amount from his account.(foreclousure). The problem is the consumer or loanee is not willing allow the entire foreclosure because he neither get his salary nor get his pension till the entire pension proposal verification process ends.To run his family 10% portion of amount of retirement benefits was given by the h.Q. it was deducted by the bank autodebit for the loan amount foreclosure. 90% of the pending benefits still has to come. the entire 10% of benefits is debited from his S.B account. Now the customer is now the customer not able to and mentaaly depressed. Is there any violation of consumer protection prevails? the affected person wish to contact consumer court for the damaging his mental upset. Expers are invited to comment.


 16 Replies

octavious (LAWYER)     03 August 2008

Hello


Yes, he can approach the consumer court


The clause to debit the salary directly from the account of the bank customer is a special clause, and prior to using the same a mail in regards to the same has to be send


And the above act of money recovery is wrong and is more like a arm twisting tactics and is against the banking principle


One can complain to banking ombusmand


 


Thnak you


Octavious


 

Srinivas.B.S.S.T ( Advocate)     03 August 2008

YOu can knock the doors of a consumer forum.

Jayaram (RETD. Education officer)     03 August 2008

He approached the bank for the\reason  for foreclousure and they said that the party or loanee is retired. thepersonal  loan is only for govt. servants. so we have closed the loan without getting consent of the loanee. here my question is a retired man from govt servant is given pension. So how do they say that a retired govt servant is not a govt servant? please this violation has come under what section of consumer rights? please clarify.

Jayaram (RETD. Education officer)     03 August 2008

is ther any specific clarification there? or any judgement copy is available to quote?


 

R.VENKATESAN (ADVOCATE)     03 August 2008

At the outset verify the loan documents and the auto debit instructions. In case there the loan documents stipulates that if your client resigns or retires from the Government Organisation, the bank will be entitled to recover the entire dues not withstanding the balance period available for your client. The bank would have invoked the said clause. Further the amount has been credited to the Savings bank account and the banker can also exercise the Bankers General Lien under Section 171 of the Contract Act.

shamit sanyal (advocate)     17 August 2008

consumer court can be approached/


 

shamit sanyal (advocate)     17 August 2008

is it a national bank/co operative/or private bank

shamit sanyal (advocate)     17 August 2008

is it a national bank/co operative/or private bank

Srinivas.B.S.S.T ( Advocate)     18 August 2008

does it make any difference to approach a consumer forum???

Pratibha (salaried)     30 November 2008

hi


I want to know on behalf of my father that my father has taken PL from ABM Ambro bank now due to the ups and downs in market he was not able to pay EMI for last two month so bank had send some recovery person to our residence who really misbehaved I want to know can we take any action against that person Is bank allowed to sned such bouncers for recovery and now my father had paid all the outstanding dues for the month of oct and nov. but this bank had send a legal notice that my father now has to pay the outstanding amont of 169000 within 15 days otherwise a legal action would be taken .


please advise me want can be done in this suitation

Pratibha (salaried)     30 November 2008

hi


I want to know on behalf of my father that my father has taken PL from ABM Ambro bank now due to the ups and downs in market he was not able to pay EMI for last two month so bank had send some recovery person to our residence who really misbehaved I want to know can we take any action against that person Is bank allowed to sned such bouncers for recovery and now my father had paid all the outstanding dues for the month of oct and nov. but this bank had send a legal notice that my father now has to pay the outstanding amont of 169000 within 15 days otherwise a legal action would be taken .


please advise me want can be done in this suitation

RAKHI BUDHIRAJA ADVOCATE (LAWYER AT BUDHIRAJA & ASSOCIATES SUPREME COURT OF INDIA)     24 December 2008

yes u can move to a cosumer forum.

B.N.Rajamohamed (advocate / commissioner of oaths)     10 March 2009

Consumer protection Act applies when there is a deficiency of service by a service provider. In your case the bank has issued the loan upon condition to deduct the deposits from your bank account for clearing the debt with your consent.


As soon as you retire it is your duty to intimate the bank pertaining to the process of operation of autodebit system upon which the bank proceeded earlier. unless you intimate the bank about your retirement and the future procedures to be adopted for clearing your debt ,the bank is entitiles to follow the earlier procedures.


Therefore, there is no case of deficiency of service in your case. You cannot move the consumer disputes redressal forum.

Y V Vishweshwar Rao (Advocate )     10 March 2009

I Agree with the View Expressed by Mr R Venkatesan


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