Pune District Consumer Commission Orders HDFC Bank To Pay Compensation For Charging Loan Pre-closure Charges
Pune District Consumer Commission Orders HDFC Bank To Pay Compensation For Charging Loan Pre-closure Charges
The Pune District Consumer Disputes Redressal Commission has ruled against HDFC Bank in a consumer dispute, directing the bank to compensate a customer for deficient services and unfair trade practices. The order came to be issued on 24th Oct 2024.
The case was represented by Advocate Chinmay Kalyani, who argued on behalf of the complainant. The dispute involved prepayment of a personal loan of ₹6,41,292. Despite prior assurances from HDFC Bank that no prepayment charges would be levied, the bank imposed excessive foreclosure fees of 4.72%. The bank also delayed the processing of a cheque
submitted for repayment, causing additional financial losses.
The commission found the bank’s actions to be in violation of consumer rights and ordered it to refund the excess foreclosure charges along with other financial losses.
Additionally, the bank was directed to pay ₹10,000 as compensation for mental and physical harassment. The total amount is to be paid with 9% interest from 24 February 2023 until full settlement.
Advocate Chinmay Kalyani hailed the judgment as a significant victory for consumer rights, stating, “This decision reinforces the importance of transparency and accountability in financial dealings.”
The order specifies that failure to comply within 45 days will result in an increased interest rate of 12% per annum.”
