The Federal Ombudsman, Salman Faruqui, has shown dissatisfaction on the loan recovery process of the House Building Finance Company Limited (HBFCL), saying that the recovery process is not as per the laid down procedure of Finance Division. He was hearing a complaint lodged by a resident of Rawalpindi Cantt Chaudhry Masood Akhtar on Wednesday.
The complainant stated that he had obtained a loan of Rs 400,000 from the institution in 2005; however even after paying 100 instalments and later on depositing Rs 350,000 as premature loan adjustment, HBFCL was still asking for Rs 219,499 for finalisation of the account.
He further stated that he had already paid an amount of Rs 697,058 and hence the demand of a further Rs 219,499 was unjustified. He also requested the Mohtasib for a refund of Rs 54,346 and the release of his property documents held by the company. Meanwhile, the officials of HBFCL appeared before the Wafaqi Mohtasib and apprised that the appreciation value of each unit charged on the account by the bank is 10% every year is in accordance to clause 20(ii) of the Deed of Assignment and Partnership. Thus the 10% was being compounded and charged on an accumulative basis, increasing progressively every year ie 10%, 20%, 30%, 40%, 50% up to 100%.
However, the Wafaqi Mohtasib, while examining the clause 20(ii) of the Deed of Assignment and Partnership stated that the realisation of the appreciation value on the shares of the company by up to 100 percent is unprecedented and should be withdrawn. In its findings, the Wafaqi Mohtasib directed the House Building Finance Company Limited (HBFCL) to carry out a fresh calculation and the amount calculated be provided to the complainant for payment. The Mohtasib also ordered to intimate the office about the steps taken by the HBFCL in this regard within 30 days.
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