ICICI Bank Limited v. Pankaj Goyal - (08 Jun 2015)
Increase in floating rate of interest arbitrarily and without transparency can warrant court interference
MANU/RB/0005/2015
Consumer
Consumer courts can give relief if banks lending to consumers on a floating interest rate arbitrarily, without notice to the borrower and non-transparently alter the interest rate. In the instant case, where the lender bank had increased the rate of interest payable by the borrower and extended the duration over which it was to be paid without notice to the Respondent, the Punjab State Consumer Dispute Redressal Commission reverted the rate of iterest to its initial figures. The Commission was unable to find conformity with the bank's Asset-Liability Management and RBI guidelines pertaining to floating rate increases.
Relevant : Central Bank of India vs. Ravindra and ors. MANU/SC/0663/2001
Corporation Bank vs. D.S. Gowda and Anr. MANU/SC/0788/1994
Tags : CONSUMER FLOATING RATE LOAN
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