HYDERABAD: A 60-year-old widow successfully fought her late husband’s case before a consumer forum against a bank which deducted equated monthly instalments (EMIs) even after the loan was cleared. The complainant, N Swarajya Lakshmi of KPHB Colony, was awarded compensation along with refund from ICICI Bank.
Nageswara Rao, husband of Lakshmi, availed a personal loan of Rs 1 lakh and a credit card from Andhra Bank. As he wanted to clear all dues, he asked the bank to debit an EMI of Rs 3,017 from his savings account from May 2007. In Aug 2010, he made a final settlement and obtained settlement certificate. Yet, the bank deducted EMIs for four more months.
When he brought it to bank’s notice, it petitioned the Lok Adalat that Rao’s credit card dues were Rs 2.5 lakh as of Sep 2009. But, in 2012, it withdrew the case.
After retirement, Rao moved to AP where he opened a savings account with ICICI Bank. But the bank, by invoking ‘right of lien’ — right to retain lawful possession until fulfilment of legal duty — deducted Rs 49,784 from Rao’s account. Together with excess EMIs drawn by Andhra Bank, the money siphoned off from Rao’s accounts stood at Rs 61,182. In 2014 Lok Adalat was approached for refund but the bank did not respond.
Judgement day
The bank alleged Rao had forged documents. The forum said the bank could not prove the charge. The bank was directed to refund the excess money that was deducted, along with 12 per cent interest and Rs 15,000 in compensation and Rs 5,000 towards litigation costs