Back in November 2004, after having just booked my first flat with the builder, I was looking for a good home loan deal. At the back of my mind I had this "All Smiles Home Loan" offer from ABN AMRO where the interest rates would be fixed at 6.5% for first 2 years and will be at prevailing floating rate after that. The rate of 6.5% was lowest in those times and getting it fixed for next 2 years was icing on the cake. My only worry was whether I'd be eligible for the loan or not.
Anyhow, I contacted 3 different home loan providers and finally was happy to apply for All Smiles Home Loan. But I had this worry at back of my mind that after two years bank might arbitrarily fix the interest rates so I insisted that I should be given a rate relative to bank's benchmark rate. Around a week after applying for loan I got this SMS that my All Smiles Home Loan has been sanctioned. My condition was also honored by fixing the rate at HPLR + 0.25%. I was obviously happy and felt fortunate to have loan at such a low rate of interest.
Two years quickly passed and interest rates started rising in the market. In two years time they went from 7-8% to 8.5-9.5%. I was wondering what ABN AMRO's interest rate would be. And when it came, I was utterly disappointed as it was fixed at 11.25%. This was at least 2% points more than the competitors in the upper band. I somehow took this with a pinch of salt thinking that its still a profitable deal with me paying interest only at 6.5% for first 2 years at least.
But what came after 6 months broke me completely. My loan rates were bumped to 13%. All the other banks were charging interest at 10-11%. I checked at their website and HPLR was 12.75%. I had no case to argue...
I still hoped that my bank will also reduce my EMI as prevailing interest rates come down. They did for sure... from 10-11% to 9-10% but my 'floating' rates seemed to have struck an ice burg at 13%. I felt deeply betrayed and it would not be exaggeration to say that...
My smile was taken away by All Smiles Home Loan of ABN AMRO bank!
Thursday, February 19, 2009
Tryst With Rajasthan Shilp Gramodyog
This gem of an experience dates back around 2004-05 when I visited city of Jaipur for a leisure trip. I visited many places in this pink city which is one of the hottest tourist spots in India. The Jaigarh Fort located at the hill-top besides the city is one of the main attractions and I too got attracted towards it and decided to pay a visit there.
After having seen the fort, just before the exit gate there was this handloom showroom bearing the name "Rajasthan Shilp Gramodyog" supposedly a government approved shop. I went around the shop and saw a few things there though I did not have any intention to purchase one. Somehow this silver looking tray-glass set caught my eyes with nice designs drawn over it and I casually enquired about it to one of the salesperson manning the counter. I saw his eyes lit up (there were more than 5 sales persons and I was the sole customer in the showroom) and he started telling me about the item.
"Sir, this is a very nice piece of rare art. You won't find it anywhere else in the world."
I paused for a moment and just for the sake of continuing the discussion, I said, "But what's it made of? Is it durable enough and good to use?"
"Definitely Sir!". He continued further, "It is made of tri-metals - nickle, chromium and silver - and totally non-toxic. You can use it for serving tea, water or any other bewerages."
"How long will it retain its shine?" I asked sarcastically.
"It will remain so forever. We will give you 10 years guarantee and you can get the 75% refund anytime." came the reply with tons of assurance.
"How much's the price?" I asked with the thought that why not to buy this... its a good looking item with cool artistic craft.
"It's only Rs. 1500 and we will give you 10% discount."
"Ok. Let's pack it up." I finally decided to buy it. I paid Rs. 1350 for that and got the stamp of "10 years' 75% refund guarantee" on the bill.
I came back to Delhi and got busy with usual chorus. After around a month or so, while looking at a vacant place in my showcase, I recalled the set of tray and 4 glasses. I immediately got the packet from closet and opened it.
And sure enough... I was stunned!
There were no silver-like glittering tray and glasses. All I had in my lap were dark, rusty, rough metal objects. You can gauge the level of anger and frustration I went through but I had no way out. I was in Delhi, the item was bought from a shop located at hill-top besides city of Jaipur - approx. 300 kms. away from Delhi.
I contacted the shop at the phone no. given on the bill, had to spoke few times with them and finally got the promise of refund. Few months later, I happened to visit Jaipur again and I squeezed half day from my hectic shedule and went to the same shop carrying the garbage in my hand hoping to get the refund.
Alas! All I got was an offer to get the 75% refund. It may not look bad but if you think what the hell should he get Rs. 350 for? For few rusted iron pieces which were not even worth a penny, leave alone my expenses I had to make just to return the item.
This was a disgusting experience but it did loads of good to me. It forced me into touch with consumer rights, consumer protection law and consumer forums that were there in our system for quite some time. I should say it was the starting point of my journey of awareness.
I filed a complaint with Jaipur district consumer forum remotely by post. Later on, I got a local lawyer of my acquiantance to handle the court hearing. The Opposite Party made my job easier by not responding to court notices and I got the full refund of Rs. 1350 plus Rs. 2000 towards mental agony and legal expenses within 6 months.
And how can I forget to mention that I got the full refund by money-order even before the court decided on my complaint.
It was my first victory as a consumer and tasted very sweet.
After having seen the fort, just before the exit gate there was this handloom showroom bearing the name "Rajasthan Shilp Gramodyog" supposedly a government approved shop. I went around the shop and saw a few things there though I did not have any intention to purchase one. Somehow this silver looking tray-glass set caught my eyes with nice designs drawn over it and I casually enquired about it to one of the salesperson manning the counter. I saw his eyes lit up (there were more than 5 sales persons and I was the sole customer in the showroom) and he started telling me about the item.
"Sir, this is a very nice piece of rare art. You won't find it anywhere else in the world."
I paused for a moment and just for the sake of continuing the discussion, I said, "But what's it made of? Is it durable enough and good to use?"
"Definitely Sir!". He continued further, "It is made of tri-metals - nickle, chromium and silver - and totally non-toxic. You can use it for serving tea, water or any other bewerages."
"How long will it retain its shine?" I asked sarcastically.
"It will remain so forever. We will give you 10 years guarantee and you can get the 75% refund anytime." came the reply with tons of assurance.
"How much's the price?" I asked with the thought that why not to buy this... its a good looking item with cool artistic craft.
"It's only Rs. 1500 and we will give you 10% discount."
"Ok. Let's pack it up." I finally decided to buy it. I paid Rs. 1350 for that and got the stamp of "10 years' 75% refund guarantee" on the bill.
I came back to Delhi and got busy with usual chorus. After around a month or so, while looking at a vacant place in my showcase, I recalled the set of tray and 4 glasses. I immediately got the packet from closet and opened it.
And sure enough... I was stunned!
There were no silver-like glittering tray and glasses. All I had in my lap were dark, rusty, rough metal objects. You can gauge the level of anger and frustration I went through but I had no way out. I was in Delhi, the item was bought from a shop located at hill-top besides city of Jaipur - approx. 300 kms. away from Delhi.
I contacted the shop at the phone no. given on the bill, had to spoke few times with them and finally got the promise of refund. Few months later, I happened to visit Jaipur again and I squeezed half day from my hectic shedule and went to the same shop carrying the garbage in my hand hoping to get the refund.
Alas! All I got was an offer to get the 75% refund. It may not look bad but if you think what the hell should he get Rs. 350 for? For few rusted iron pieces which were not even worth a penny, leave alone my expenses I had to make just to return the item.
This was a disgusting experience but it did loads of good to me. It forced me into touch with consumer rights, consumer protection law and consumer forums that were there in our system for quite some time. I should say it was the starting point of my journey of awareness.
I filed a complaint with Jaipur district consumer forum remotely by post. Later on, I got a local lawyer of my acquiantance to handle the court hearing. The Opposite Party made my job easier by not responding to court notices and I got the full refund of Rs. 1350 plus Rs. 2000 towards mental agony and legal expenses within 6 months.
And how can I forget to mention that I got the full refund by money-order even before the court decided on my complaint.
It was my first victory as a consumer and tasted very sweet.
Car Finance Discount Which Never Was
This incidents dates back to year 2002 when I was in the process of buying my first car. Like any other person, I was obviously happy with the thought of owning a car and not having to bother about rain or sunlight while commuting. And also like any other person, I was looking for the best deal.
As it happened, I noticed few advertisements in the newspaper where car dealers were offering additional discounts on car finance options. I was elated to know that but wanted to be sure if that is the case. So I visited a Maruti car dealer "Allianz" in Delhi's Safderjung Enclave area. I met Citibank executive named Neeraj there and he explained me the scheme that if I get my car financed then I will get some additional discount of approx. rupees 8 to 10 thousand. That guy gave me another surprising statement that if I paid all my EMIs on time then Citibank may waive last EMI. It was like icing on the cake. This was a very lucrative offer for me and I fixed the deal.
But when it came to make initial payment, he insisted on paying first EMI in advance. It seemed a bit odd to me but I agreed to it, perhaps the joy of owning the car prevented me from arguing further.
I got the delivery in next 2-3 days and was living happily ever after until a sudden thought struck me one day after 2-3 years. While discussing the car loan options and procedures with one of the friend, suddenly a thought crossed my mind that my car loan might consist of 35 EMIs instead of standard 36 (for a 3 year loan) and the dealer charged me some amount as first advance EMI. It was invoiced by the dealer not by the financing bank. So effectively there was no additional discount at all.
I rushed back home in the evening and checked my car loan documents. I was dot on the trick though a bit delayed. It was a 35 months loan and then I recalled his statement:
"if I paid all my EMIs on time then Citibank may waive last EMI."
As it happened, I noticed few advertisements in the newspaper where car dealers were offering additional discounts on car finance options. I was elated to know that but wanted to be sure if that is the case. So I visited a Maruti car dealer "Allianz" in Delhi's Safderjung Enclave area. I met Citibank executive named Neeraj there and he explained me the scheme that if I get my car financed then I will get some additional discount of approx. rupees 8 to 10 thousand. That guy gave me another surprising statement that if I paid all my EMIs on time then Citibank may waive last EMI. It was like icing on the cake. This was a very lucrative offer for me and I fixed the deal.
But when it came to make initial payment, he insisted on paying first EMI in advance. It seemed a bit odd to me but I agreed to it, perhaps the joy of owning the car prevented me from arguing further.
I got the delivery in next 2-3 days and was living happily ever after until a sudden thought struck me one day after 2-3 years. While discussing the car loan options and procedures with one of the friend, suddenly a thought crossed my mind that my car loan might consist of 35 EMIs instead of standard 36 (for a 3 year loan) and the dealer charged me some amount as first advance EMI. It was invoiced by the dealer not by the financing bank. So effectively there was no additional discount at all.
I rushed back home in the evening and checked my car loan documents. I was dot on the trick though a bit delayed. It was a 35 months loan and then I recalled his statement:
"if I paid all my EMIs on time then Citibank may waive last EMI."
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