Cholamandalam DBS Finance asked to pay Rs 47,000 to loan customer

Cholamandalam DBS Finance Ltd (Chola) has been ordered by a Delhi consumer forum to pay Rs 25,000 as compensation to one of its customers for not issuing a no-dues certificate to him despite getting settled its loan to him and withdrawing over Rs 22,000 instead from his bank..The District Consumer Disputes Redressal Forum also asked the non-banking financial firm to return over Rs 22,000 to the customer that it had withdrawn from his bank account, using his documents unauthorisedly.."The company received the settled amount as per the terms of settlement. Thereafter, it should have issued no-dues certificate to the complainant. The firm, instead, withdrew an amount of Rs 11,299 on two occasions from his bank account, much beyond the period of receipt of the settled sum.."It should have also returned back all relevant documents to the complainant or should have given undertaking that it would not use those documents for any purpose," said the forum presided over by B B Chaudhary..Observing that "the act of the company cannot be approved by any stretch of imagination," it added, "The act of the company has caused deficiency in service. It has occurred due to severe negligence on the part of the company.".Arora, in his plea, had said as per an agreement reached with the company for settlement of a loan of Rs 3.8 lakh that he had taken from it, he paid Rs 2.5 lakh to it..He alleged despite receiving the full and final amount for the loan settlement, the firm failed to issue a no-dues certificate to him and instead illegally withdrew Rs 11,299 twice from his account..The company, in its reply, to Arora's notice had contended that he did not comply with the terms of settlement. The forum brushed aside the contention, saying "the record speaks against the stand taken by the company" while directing it to issue Arora a 'no-dues certificate" in respect to the loan account..The forum also directed the company not to use the documents, including the cheques and electronic clearing services (ECS) facility made available to it by him in respect of the personal loan.

Cholamandalam DBS Finance asked to pay Rs 47,000 to loan customer

The proposal to tax customers at policy maturity or EET method will have an extremely adverse impact on life insurance industry.

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