Hyderabad: The Hyderabad District Consumer Forum-3 has directed a branch manager of Bajaj Finserv personal loans to refund an amount of Rs 50,000 to one Ch. Rambabu and also pay him Rs 5,000 as compensation for indulging in unfair trade practices by forcing him to pay for a policy he never opted for.
The complainant purchased a refrigerator from an electronics showroom at Jubilee Hills on March 3, 2014. The actual price of the product was Rs 14,900, and the complainant paid an initial amount of Rs 5,000 as down payment, while he agreed to pay the remaining amount in eight EMIs at '1,242 per month.
Mr Rambabu also paid an extra Rs 500 as processing charge and Rs 300 towards EMI network privilege card and he also issued post-dated cheques for the first and second month to be deducted from his savings bank account.
But to his surprise, as soon as the second month was over, he received a call from Bajaj Finserv personal loans, Mumbai branch, which offered him an insurance policy. He refused it but also couldn't understand the tele-caller because she was speaking in Hindi. Despite refusing the offer, the insurance policy was activated and he was instructed to maintain a minimum balance of Rs 2,985 in his account for payment towards the premium of the policy.
As Mr Rambabu wasn’t interested in the policy, he withdrew the entire amount from his bank and went to the showroom to request that he pay the remaining instalments in cash.
But the executives in the showroom told him that he had to pay the amount towards the insurance policy or criminal action would be initiated against him.
The insurance policy had been activated due to a technical error. Rather than cancelling the policy, showroom staff told him to pay the amount.
After listening to both parties, the forum ruled that Bajaj had resorted to unfair practices and must refund Rs 50,000 and also pay compensation of Rs 5000 for causing mental agony to the complainant.
