A consumer commission here has directed IDFC Bank to pay Rs 1 lakh compensation to a man from Navi Mumbai after it deducted EMI for a loan he never availed.

Holding the bank guilty of deficiency in service, the District Consumer Disputes Redressal Commission (Mumbai Suburban) also asked it to refund the EMI amount of Rs 5,676 with interest to the customer.

The order passed by the commission last month was made available recently.

The complainant claimed that in February 2020, he found out that the bank had deducted EMI from his account at its Panvel branch for a loan he had not availed.

On enquiry, the bank informed the complainant that an email was sent to him, citing that it was an ECS payment, and when he visited the bank branch, he was given a loan account.

However, when he logged into the account, the complainant found an expired voucher from the e-commerce company Amazon.

The complainant alleged that IDFC Bank fraudulently sanctioned a loan without following mandatory procedures and obtaining signatures.

The bank had sanctioned a loan of Rs 20,000 for a 20-month tenure with a monthly EMI of Rs 1,892 illegally by misusing personal details from previous loan history, he claimed.

The commission noted that the complainant's correspondence with Amazon shows it has not received any amount from the bank for the voucher.

"So, it is clear that IDFC Bank has not given a loan on the said voucher to the complainant. The opponent (bank) deducted EMI for the loan the complainant has not taken. This is nothing but an unfair trade practice," the commission said.

It observed that due to such illegal acts, the CIBIL score of the complainant got worse because of non-payment of the EMI.

The commission directed the bank to refund the deducted EMI to the complainant with interest and pay him Rs 1 lakh as compensation for deficiency in service and mental and physical trauma within 60 days from receipt of the order.

It also asked the bank to pay Rs 10,000 towards the cost of litigation and clear the CIBIL record related to the complaint.

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