Chennai: More than 11 years after paying off a Rs 16,000 loan taken from a city-based bank to buy a two-wheeler, a resident of Kolathur will finally get back the original RC book and other documents that the bank had not returned to him. The District Consumer Redressal Forum (Chennai South) on Friday directed the bank to return the documents and pay a compensation of Rs 5,000 towards the mental agony caused.
The case pertains to G Raman who had taken the loan from Centurion Bank of Punjab in Egmore in 2004. He had entered into a hypothecation cum loan agreement and had to pay Rs 791 as EMI for 24 months, for which he issued post-dated cheques.
In October 2005, he offered to pay the remaining loan amount of Rs 5,537 as a lumpsum. But two months later, the bank issued a notice without responding to his request and also sent collection agents.
Later, in March 2006, despite payment of the remaining loan amount, the bank refused to return the original RC book and Form-35 with no due certificate. The bank also claimed Rs 2,800 as cheque-bounced charges and Rs 833 as penalty.
In the order, president of the Forum M Mony said the bank failed to produce any endorsement cheque bounce or a cheque return memo showing the reason for the bounce. “The bank failed and neglected to issue statement of account and percentage of penal interest,” the order said.
The Forum also noted that it was clear from the records that the complainant had paid the entire amount by Demand Draft (DD) one month before the due date.
Despite this, the bank sent collection staff, the forum noted, invoking a judgement of Madurai bench of Madras high court which had observed that recovery of loans through musclemen under the title of ‘recovery agents’ was not permitted in law.