Rajkot: The District Consumer Disputes Redressal Commission (Main), Rajkot, has ruled in favor of an academician observing that a bank unilaterally extended his daughter’s education loan tenure from seven years to over 15 years and falsely demanded nearly Rs 9.96 lakh following complete repayment.The complainant, Thankchan Jose Kaitharath, had availed of an education loan of Rs 7.50 lakh in Feb 2012 to finance the studies of his daughter, Linsha. Under the sanction terms, the loan was repayable in 84 monthly installments of Rs 16,500 each at an annual interest rate of 14%.According to the complaint, Kaitharath paid all 84 EMIs totaling Rs 13.99 lakh. However, an account statement issued by CSB Bank Ltd. in March 2024 revealed an outstanding of Rs 9.96 lakh. “The applicant initiated the communication with bank stating that the bank had lengthened the loan repayment tenure from 84 months to 189 months without prior consent, notification, or revised sanction documents,” said advocate G M Jani who represented KaitharathHe represented to the higher officials of the bank as well as the legal department. Furthermore, the bank classified the account as a non-performing asset (NPA) and initiated recovery communications, negatively impacting Kaitharath’s credit profile and causing mental distress..Kaitharath finally approached the consumer commission citing arbitrary alteration of contractual terms, failure to respond to a legal notice dated Sept 21, 2024, and violations of Reserve Bank of India (RBI) guidelines on fair lending practices.The bank, through its Jamnagar branch, claimed during correspondence that defaults had extended the tenure. However, the bench observed that the bank failed to produce credible records or substantiating evidence to support its claims within the stipulated timeframe.“Delivering the judgement on Sept 8, consumer forum held the bank liable for deficiency in service and unfair trade practices. The Commission directed CSB Bank to credit the disputed debit balance of Rs 9.96 lakh into the loan account along with 6% interest per annum calculated from the complaint filing date.” Jani added.
