HDFC Bank: Refunded GPS device commission to auto loan customers

Private sector lender HDFC Bank has said it will be refunding the GPS device commission to automobile loan customers who availed of such device as a neighbourhood of the automobile loan funding during financial year s 2013-14 to fiscal year 2019-20.

“The refund are going to be credited to the customer’s repayment checking account registered with the bank,” HDFC Bank said during a public notice to a newspaper on Thursday.
The bank has been within the midst of an issue over alleged mis-selling of GPS devices to its automobile loan customers.

Reserve Bank of India had on May 28 imposed a monetary penalty of ₹10 crore on HDFC Bank. This came after the financial institution found irregularities supported a whistleblower complaint within the bank’s automobile loan portfolio.

An examination of documents within the matter of selling and sale of third-party non-financial products to the bank’s customers, arising from a whistle-blower complaint to RBI regarding irregularities within the automobile loan portfolio of the bank, revealed contravention of the provisions of the Act and therefore the regulatory directions, the RBI had said.
HDFC Bank had last year conducted an indoor investigation into allegations that customers of its car loans were being given GPS devices without their knowledge. The allegations had initially come abreast of social media.

The lender’s former director and CEO Aditya Puri at the annual general meeting on July 18 last year had confirmed that the bank conducted an inquiry into vehicle loans and appropriate action has been taken against employees involved within the misconduct.

The incident had also led to the exit of variety of executives from the bank. the value of the device is known to be about ₹18,000.

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