In a recent order dated July 26, the District Consumer Disputes Redressal Commission in Mumbai has ruled that Union Bank of India must refund processing charges along with 9% interest to a consumer. The bank had charged this amount despite advertising a waiver during a festive offer, as clearly mentioned in the home loan sanction letter provided to the customer.
The complainant, Amit Gosar, a resident of Malad, had availed a home loan from the bank during a festive period offer on December 7, 2019. The offer specified a 100% waiver on processing charges for the home loan scheme between September 6 and December 31, 2019, under Union Home and Union Miles schemes. However, the bank failed to refund the money as promised, even after Gosar sent a legal notice, which was ignored.
As a result, Gosar filed a complaint with the consumer commission, but unfortunately, it was disregarded, leading to an ex-parte order. The commission reviewed the evidence and found that the bank had debited an amount of Rs17,700 from Gosar’s account for processing charges on December 12, 2019, despite the festive offer and sanction letter indicating a waiver. Consequently, the commission deemed the bank’s actions to be a “deficiency in service and unfair trade practice.”
In light of their findings, the commission has directed Union Bank of India to refund the processing charges with interest per annum, starting from the date of deduction. Additionally, they have ordered the bank to pay Rs.20,000 as compensation to Gosar for the mental agony and litigation costs he suffered due to the bank’s actions.