Hyderabad firm asked to pay Rs 1 lakh to loan applicant
HYDERABAD: The District Consumer Dispute Redressal Commission - III, Hyderabad, has ordered a finance firm to pay a compensation of Rs 1 lakh to a complainant for causing mental agony. Even before releasing the amount to a loan applicant, M/s Fullerton India Home Finance Co. Ltd. collected EMIs from the applicant. In March 2018, B Satish (39), a resident of Bandlaguda in Rangareddy district, approached the firm seeking a loan of Rs 20 lakh. After evaluating the application, the firm sanctioned him `12.5 lakh within a week and informed him of the same.
However, the said amount was not released into the account of the applicant. In due course, representatives of the firm visited the residence of the applicant and collected cheques to claim EMIs. Fullerton India generated the first month’s EMI of Rs 16,647 for the applicant and claimed the amount with a cheque. When the applicant approached the money lending firm, they asked him to submit all his original documents.
Incidentally, after promising to release the loan amount, the firm asked Satish to make available “sufficient funds” to claim the second month’s installment. When the applicant refused to pay it, Fullerton India cancelled the loan. Irked over the developments, the consumer took the legal route. The Commission directed Fullerton India to refund the first installment amount and pay the applicant a compensation of over Rs 1 lakh.