Collection of Penal Charges Delay as Per Agreement Not Amount to Deficiency in Service Telangana State Commission Dismisses Appeal Against Bajaj Finance (Consumer Case)
The complainant took a personal loan of RS.1,10,000 from Bajaj Finance and made timely monthly payments, including early payments and an additional RS.4,500.
However, the finance company imposed an unjustified RS.600 penalty and charged an annual interest rate of 35.01%, exceeding the agreed rate of 1.75% per month. The complainant filed a complaint before the District Commission, seeking RS.1,00,000 with interest RS.5,000 in costs, and RS.50,000 as compensation, but the complaint was dismissed.
The complainant then appealed to the State Commission of Telangana. The Commission noted discrepancies between the loan agreement and the actual loan terms, with the agreement specifying a 36-month tenure at a flat interest rate of 20.95%, while the loan had an annual interest rate of 35.01%. It was also observed that the complainant made irregular and delayed payments, with no evidence of full payment of either 24 or 36 installments.
The penal charges for delays, as per the agreement, were founded to be correctly applied. After reviewing the case, the Commission concluded that the finance company’s interest and EMI terms were in line with the agreement and found no evidence of unfair trade practices. Consequently, the appeal was dismissed, and the District Commission was upheld.
Source: – Live Law
By: – Rajat Ranjan
