The West Delhi District Consumer Forum passed the orders to the ICICI bank to pay Rs 50,000 compensation to a customer and return his Indica car forcibly repossessed by its employees in violation of Supreme Court's guidelines.
While giving the decision on the petition filed by Ajmer Singh, the West Delhi District Consumer Forum president J P Sharma said "The conduct of the Bank in taking forcible possession of car without intervention of the civil court was illegal in view of what has been observed by the Supreme Court and the National Consumer Commission"
The Forum held the Bank guilty of deficiency in service for illegal taking away his car while it was parked outside his residence on July 29 2006, awarded a compensation of Rs 50,000 to be given to Ajmer Singh, a resident of Tilak Nagar.
"We direct the Bank to return Singh's car on payment of EMIs due till date," he said.
"The Bank shall have to pay a compensation of Rs 50,000, including cost, to the complainant for the harassment caused to him," the Forum, also comprising S M Mazumdar and Krishna Gupta, said.
Singh had taken a loan of Rs 1.50 lakh from ICICI Bank to buy a car and deposited post-dated cheques for its repayment, had filed a petition against the Bank to the Forum seeking compensation over for the illegal repossession of his vehicle.
He blamed the Bank for violating the Supreme Court's guidelines by repossessing his financed vehicle, without giving him a notice.
Singh further alleged that the Bank refused to release his Indica car even on the payment of the due amount.
The Bank opposing Singh's contention, referred to the terms and conditions of the loan agreement which empowered it to repossess of the car, after due notice, on default.
Thursday, March 27, 2008
Wednesday, March 19, 2008
ICICI Bank credit card insurance issue come under scanner of MRTPC
ICICI Bank, the country’s largest private sector lender, and its insurance arm ICICI Lombard, had unveiled an offer to provide insurance cover to its credit card customers and compensation in case of any mishap. Following on the compliant by the a customer about being denied insurance claims the bank has come under the scanner of fair trade practices body MRTPC for imposing “unfair and unjust” conditions on the insurance cover provided to the credit card customers. The Monopolies and Restrictive Trade Practices Commission directed the DGIR to probe into the matter.
In its investigation report Director General of Investigations and Registration (DGIR), have found that certain terms and conditions concerning the insurance cover on credit cards were not conveyed to the customers at the time of issue, but only mentioned in the welcome kit booklet.
While taking note of some conditions being “unfair and unjust to the consumers”, DGIR said that customers are being denied insurance claims on the ground that cards were not used two times within 90 days from the accident day.
The report said, “ICICI Bank did not inform the customer about this pre-condition while issuing the credit card. The subscriber came to know of the same only when the card was delivered along with the welcome kit”. “This shows the bank’s casual approach,” said DGIR in its report, while recommending suitable action against the ‘unfair and unjust’ terms.
“ICICI Bank and ICICI Lombard would have misled many more people while selling the credit card and making tall claims regarding benefits, without revealing the terms and conditions regarding usage”.
Admitting a report of its investigative unit DGIR, the Monopolies and Restrictive Trade Practices Commission issued ‘notice of enquiry’ against the two companies.
The notice was issued on March 11 and both the companies have been asked to file their replies within four weeks. When ICICI Bank, was contacted in this regard, the bank denied receiving any such notice.
“ICICI Bank is yet to receive any notice and would reply appropriately when we get it,” said an ICICI spokesperson.
In its investigation report Director General of Investigations and Registration (DGIR), have found that certain terms and conditions concerning the insurance cover on credit cards were not conveyed to the customers at the time of issue, but only mentioned in the welcome kit booklet.
While taking note of some conditions being “unfair and unjust to the consumers”, DGIR said that customers are being denied insurance claims on the ground that cards were not used two times within 90 days from the accident day.
The report said, “ICICI Bank did not inform the customer about this pre-condition while issuing the credit card. The subscriber came to know of the same only when the card was delivered along with the welcome kit”. “This shows the bank’s casual approach,” said DGIR in its report, while recommending suitable action against the ‘unfair and unjust’ terms.
“ICICI Bank and ICICI Lombard would have misled many more people while selling the credit card and making tall claims regarding benefits, without revealing the terms and conditions regarding usage”.
Admitting a report of its investigative unit DGIR, the Monopolies and Restrictive Trade Practices Commission issued ‘notice of enquiry’ against the two companies.
The notice was issued on March 11 and both the companies have been asked to file their replies within four weeks. When ICICI Bank, was contacted in this regard, the bank denied receiving any such notice.
“ICICI Bank is yet to receive any notice and would reply appropriately when we get it,” said an ICICI spokesperson.
Wednesday, March 5, 2008
Development Credit Bank tie up with ICICI Bank enters credit card business
Private-sector lender Development Credit Bank tied up with ICICI Bank to get into credit card business. The ICICI Bank will be handling its credit card venture.
"The credit card market in India is currently under-penetrated and growth in this segment is expected to be high," DCB Managing Director and CEO Gautam Vir said.
He said currently bank is having 4.5 lakh customers and about 50,000 customers are expected to take the card which will be called "DCB Advantage Credit Card".
Meanwhile, Sachin Khandelwal, head, cards product group of ICICI Bank said previously credit card holders preferred revolving credit. But revolving credit attracts higher interest rate. He further added that now many of the card holders have started resorting to convert their dues into equated monthly installments which attract interest rate of only 20 per cent.
"The credit card market in India is currently under-penetrated and growth in this segment is expected to be high," DCB Managing Director and CEO Gautam Vir said.
He said currently bank is having 4.5 lakh customers and about 50,000 customers are expected to take the card which will be called "DCB Advantage Credit Card".
Meanwhile, Sachin Khandelwal, head, cards product group of ICICI Bank said previously credit card holders preferred revolving credit. But revolving credit attracts higher interest rate. He further added that now many of the card holders have started resorting to convert their dues into equated monthly installments which attract interest rate of only 20 per cent.
Sunday, March 2, 2008
ICICI Bank starts operations in US
ICICI Bank, India's largest private sector bank, has started its operations in the United States at posh midtown New York. It is the banks first branch in US.
Under the license granted by regulators here, initially the bank will be providing services to corporate customers, but it aims is to go into general retail banking also.
Talking to PTI, Executive Director Sonjoy Chatterjee said that at present the bank has been authorized to do retail business for Indians who come to the United States on work H1B visa.
He said the bank, will be offering package facilities to them. For example, they could be given credit card and cheque book before they leave for the US to enable them to do business from the day of their arrival.
On being asked whether Indians on other visas will be able to avail of the facility, Chatterjee said only and specifically H1B visa is mentioned in the license.
The bank will be offering a suite of banking services including working capital, acquisition finance, trade services and treasury solution to corporates and savings products to qualified individuals.
Under the license granted by regulators here, initially the bank will be providing services to corporate customers, but it aims is to go into general retail banking also.
Talking to PTI, Executive Director Sonjoy Chatterjee said that at present the bank has been authorized to do retail business for Indians who come to the United States on work H1B visa.
He said the bank, will be offering package facilities to them. For example, they could be given credit card and cheque book before they leave for the US to enable them to do business from the day of their arrival.
On being asked whether Indians on other visas will be able to avail of the facility, Chatterjee said only and specifically H1B visa is mentioned in the license.
The bank will be offering a suite of banking services including working capital, acquisition finance, trade services and treasury solution to corporates and savings products to qualified individuals.
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