Forum fines bank for service deficiency

District Consumer Forum-2 has asked a bank to release housing documents and a no-dues certificate along with pay a penalty of ₹1 lakh for deficiency of service in not renewing the property insurance on time.

In its order passed on Monday, forum president Chavali Vijay Bhaskaram and member Sarojini said the bank should immediately release mortgage, sale deed, link documents and a no-dues certificate.

The forum also asked the bank to pay penalty and return ₹1.17 lakh towards EMI remitted in excess by S. Srinivasa Rao, guardian of two minor children. The children’s father Vijay Kumar, a lecturer in Berhampur University, who was the principal applicant, and his wife Shantiratnam, co-applicant, had borrowed a loan of ₹22 lakh from a private Bank, in 2011 towards buying a flat in Madhurawada. The EMI was fixed at ₹23,533. They also had to take a property insurance from a private insurance company for which they had paid ₹66,220 during five years.

The principal loanee and the co-applicant died in a span of one month due to various reasons in 2017.

Mr. Srinivas arranged payment of EMI for five months. When he found insurance documents, he immediately submitted a claim for waiver of loan and refund of amount paid after death of the loanee.

With the bank not responding, advocate A.V.C.N. Nageswara Rao filed the case in the consumer forum .

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Printable version | Apr 17, 2021 9:14:20 AM |

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