Lawfarm Team
Asked May 25, 2016

Legal action against Bank for financial loss and emotional stress

  • 2 Answers
  • 574 Views

I have taken a home loan from HDFC in 2013 and have been paying the EMI through ECS from my account in the IDBI bank. In February 2015, HDFC gave wrong details to IDBI because of which IDBI informed HDFC that the concerned account is closed. As per HDFC I am unable to repay the home loan as the IDBI a/c does not exist anymore even though I am regularly using the very same  IDBI account. I have approached both the Banks to assist with no success.  I then approached the three tier grievance redressal system of IDBI but could not solve the problem. Upon further persuation, IDBI has  gave me in writing that the account details mentioned by HDFC were wrong so they had returned the ECS. I submitted this letter to HDFC but it had no effect and they have dismissed my calls with silly excuses. Further, they are now asking me to repay the loan with  additional interest and incidental charges for the delay , when there is no mistake of mine. The inefficiency of the two Banks has caused me great trouble financially and emotionally and it will further effect my CRISIL score and I want to take legal action against them for this.

Answers 2

Make sure you have a copy of all the mails and the documents exchanged between you and the two banks. In addition to this, keep all the documents submitted and received from the III tier grievance redressal system of IDBI. Do visit the website of IDBI and HDFC to find out if they have any other mechanism to solve grievances of the consumer. Although you have filed a complaint before the grievance redressal system of IDBI, now try to identify the highest possible authority for grievance redressal there and file your complaint again before it. This is important as it will help you in your next step. If the Banks are unable to solve your problem after your complain to highest redressal body then you can approach the Banking Ombudsman created by the RBI to regulate the Banks and protect the interest of the consumers under the Banking Ombudsman Scheme, 2006. You can file a complaint on this link- https://secweb.rbi.org.in/BO/precompltindex.htm. The complaint can be filed within one year from the date on which you received a response from the Bank’s officials against your complaint. The Banking Ombudsman will require you to submit all the relevant documents regarding the issue. Clause 8 of the Banking Ombudsman Scheme, 2006 provides the grounds on which a complaint can be filed before the Ombudsman.[1] Your issue can be covered under some of the grounds provided in the list and therefore you can file it before banking Ombudsman. Further the Banking Ombudsman will take up the issue only when it is satisfied that you have approached the correct authorities at the Bank to solve the problem before approaching the Ombudsman. Therefore preserve all the documents exchanged and received from the Banks and the grievance redressal team of the Banks. The Banking Ombudsman will consider all the documents placed before it by you and the Bank and try to act as a mediator and help you and the Banks to settle the dispute and arrive to an agreement. You also have the option to lodge a complaint with Consumer Forum under the Consumer Protection Act, 1986. Approach the correct jurisdiction and your lawyer will guide you in the most efficient manner. Also, in Consumer Forum, you can choose to represent yourself. You can also seek damages if you wish to.   There have been multiple complaints against the banks who harass customers for no reason. Even the Supreme Court has taken cognizance of the same on multiple instances. In Ms. Jyoti Khurana v. Kotak Mahindra Bank [2], the complainant was harassed for no reason or fault of her and when she approached the Consumer Forum, damages worth Rs. 1,00,000 were awarded to her.      [1] Refer to https://www.rbi.org.in/Scripts/FAQView.aspx?Id=24 Last seen on 21-05-2016 [2] https://indiankanoon.org/doc/154300527/   Researcher - Vidit Mehra 
Agree Comment 0 Agrees over 1 year ago

Consumer protection is a hot topic these days because there are multiple complaints against the banks who harass customers for no reason. Given the present rate of NPA, banks are using every method to get recovery from borrowers. Even Supreme Court has taken cognizance of the same on multiple instances. In Ms. Jyoti Khurana v. Kotak Mahindra Bank, the complainant was harassed for no reason or fault of her and when she approached the Consumer Forum, damages worth Rs. 1,00,000 were awarded to her. In another case, Tapan Bose v. ICICI Bank Ltd, the State Commission Delhi awarded damages worth 5 lakhs to the complainant for mental agony and punitive damages of 50 lakhs for violating orders of State Commission and Supreme Court for using illegal methods in getting payment of a loan. 
Agree Comment 0 Agrees over 1 year ago

Please Login or Register to Submit Answer

Do you have a Will?
Why not create one now for free in under 10 minutes!

Get started now