m jhlkjh

Consumer Newsletter July 2014Vol. 17

In this Issue: News from CAI and CONCERT-Seminar on Comparative Testing results of Housing Loans, Electric Plugs and Sockets.

Page 1

Seminar on Comparative Testing results of Housing Loans, Electric Plugs and Sockets. Page 2

Achievement by CAI in the Consumer Forum, FLASH NEWS about the talk show in Sun News Page 3

Misconception regarding protein intake, Extract from advisory on ban on import of Dairy Products, Information to the Consumers from TNERC

Page 4

Consumer cases solved by CAI-1 Page 5

Consumer cases solved by CAI-2 Page 6

Consumer cases solved by CAI-2 Page 7

The 5th

and final seminar in the Comparative

Testing series was held on 21st

June at the Madras

Institute of Development Studies, Gandhinagar, 2nd

Main Road, Adayar, Chennai – 600 020. A total of 58

persons attended the seminar, including 5 members

from the media.

After the welcome address by Mr.G.Rajan, the Chief

Guest Mr.D.Krishnan, former ED of LIC and former

CEO of LIC Housing Finance Co.Ltd., addressed the

gathering. He mentioned that growing demand for

housing has led to a very competitive situation in the

Housing Finance market and hence, it is very essential

for people to be cautions when evaluating and deciding

on the company/Bank from whom they should get the

required finance.

He said that many a times, people went ahead and

signed up for loans without studying the fine print,

whereby they are then having to pay extra charges

and go through a lot of avoidable hassle. He also

dwelt on how Reverse Mortgage is available for

senior citizens, who own a property but do not have

the means to sustain themselves or take care of the

upkeep and maintenance of the same, due to there

being no fixed source of income or financial support.

The discussion came to an end with a query “how does

one select a good electrician?”

Mr.Krishnan also talked about the importance of

spending quality time on selecting plugs and

sockets for the houses people buy, otherwise they

may get short-changed and land up with problems

including accidents through electrical faults caused by

sub-standard plugs and sockets.

In the absence of the regular Concert Lead,

Mr.N.Ganapathy, Mr.Mohan made a presentation on the

findings of the comparative tests on Housing Finance.

The PowerPoint presentation on the housing finance

was followed by considerable interaction from the

audience.

Quite a few of the participants were keen to know

about the structure and role of CIBIL (Credit

Information Bureau of India Ltd). This was explained

in detail by Mr.D.Krishnan, our Chief Guest, who stood

in for Mr.N.Ganapathy.

There was a general feeling expressed by that the

CIBIL appears to be an impediment in the processing of

loans and makes it difficult for people to obtain loans. It

was felt that CIBIL is not consumer friendly. Again,

Mr.Krishnan clarified that while the CIBIL score was

available for reference for the funding agency, it was not

mandatory for them to follow the same. The Bank or

Housing Finance Company used a number of other

factors to assess and decide on loan sanction.

Mr.Krishnan spoke at length on the role of CIBIL and

how it can be made to play a positive role. He agreed

with the suggestions that the new RBI guideline on

CIBIL must be followed in right spirit.

NEWS FROM CAI AND CONCERT

SEMINAR ON COMPARATIVE TESTING RESULTS OF HOUSING LOANS,

ELECTRIC PLUGS AND SOCKETS

CAI Consumer Newsletter Page 2

Another point put forward was that Public Sector Banks are

very rigid in processing the loans to low income groups, while

the NBFCS are flexible but charge higher interest.

To attract more customers from the lower income groups, the banks must be pro-active. Reverse Mortgage was another area touched by many senior citizens. Only about 800 crores have been availed as loan in this area, in these 10 years which is quite a low figure, when compared to its potential. Mr. Krishnan conceded that there was a clear reluctance amongst many banks to promote this facility and he felt this could be stopped up by proper direction / focus from the Government. CAI could play a role in this area.

Mr.G.Krishnamurthy, former Chairman of LIC, expressed a view that the lending institutions must also focus on making sure the buildings funded by them are measuring up to the quality standards agreed to by the Builder in the Contract. There were also several questions on mortgage of houses etc.

The session on “Plugs and Sockets” also drew much attention.

In the presentation on these products, it was highlighted that even some of the brands with ISI mark were not having the “good” rating as per the tests conducted by CONCERT. It was agreed that this would be brought to the attention of the BIS authorities and the manufacturers.

After the technical aspects were explained, the following important safety tips were shared with audience.

• Not to connect one extension cord into another and not to overload; instead fix a twin socket outlet in the room where one needs to connect more appliances.

• use of 16A sockets for loads above 700 watts.

• regular cleaning of the surfaces of sockets to remove dust

• buy plugs and sockets with ISI mark (BIS certified)

• preferably use socket outlets with shutters

• Always insert the earth pin (which is longer) of the plug in the socket first and then insert the other two pins.

Furthermore, many persons in the audience expressed concern that there was little or no enforcement by BIS on products that had ISI mark, including plugs and sockets. Mandating of ISI mark on all electrical products was stressed by many.

This would also be taken up by CONCERT in their

communication to BIS.

Following are some excerpts from Newspapers who

covered the Seminar:

1. Dinamani on 30th June, 2014

The CONCERT Trust a Voluntary Consumer Organization took a survey with totally 2,316 people in City areas and Village areas selectively. They were asked several questions regarding this survey. The final report of the survey was published on the seminar on 21

st June, 2014.

Some of the findings were:

• Most of the Middle class people are dependent on the Housing Loans provided by the banks only.

• In spite of rejecting the Housing Loans applications for several issues, the service charges they get from the applicant is not refunded by many Banks.

• 80% of the people who participated in the survey approached the banks directly for their home loan.

2 2. Nanayam Vikatan on 28th June, 2014

The CONCERT Trust conducted a survey on Housing Loan. The results of the survey from the consumer are as follows:

• 94% said bank / finance company have explained their Terms and Conditions to them.

• 96% had no problem in submitting all the necessary documents for getting the loan.

• 86.5% submitted the copies of the documents required.

From the above results, it was clearly understood that there is more awareness about the Housing Loan among the consumers. 22% choose the bank by considering the interest rate for the loan. 31.5% considered the way of approach by the bank. 65% complained that theirapplications were rejected and the application fee was not refunded. 80% approached the bank directly without any agent to avail loan.

47% informed that the loan was approved within 15 to 30days and 3% informed within 7 days they got loan approval. Above 80% complained that the banks were requesting to submit more information.

41.5% said that they have a good relationship with the bank from where they got loan. 20% of them worried that it took more than 15 days to even get an application form. 47% said sanctioning of

loan was delayed for more than 7 days.

Only 62 consumers informed that there was NO COMPLAINTS out of the total survey conducted from 2316 Consumers.

SEMINAR ON COMPARATIVE TESTING RESULTS OF HOUSING LOANS,

ELECTRIC PLUGS AND SOCKETS

\ ]

June 2013Vol. 4CAI Consumer Newsletter Page 3

In 2010, we received a complaint from Mrs. Arumugam Kanthimathiammal against Etihad Airways, Chennai

regarding the ill treatment meted out during her travel from Minneapolis USA to Chennai. The complainant, a wheel chair passenger was forced out at the time of issuing the Boarding pass as there was some confusion in

spelling her name. After much persuasion she was allowed to board, only to be pulled out later by another passenger. With poor Communication knowledge in English her agony continued when she had to be transshipped at Abudubai, were she was detained as unlawful passenger,

till her son in law reached her the next day from Chennai. These things were explained in our memorandum to the Airlines which did not respond positively. We had sought for compensation of Rs.16 lakhs for mental agony and another 78,082, being transport charges for her son in law.

An affidavit was prepared and filed in the Chennai District Consumer Redressed Forum (South) under Sec 12 of Consumer Protection Act and we also suggested the complainant to engage a lawyer to contest the case. The case was heard by the above forum (OP 371/2010) and in the Judgment delivered in May 2014, a compensation of Rs.3 Lakhs including travel cost of 70282/- , Son –in –law was ordered. The support given by CAI to the Complainant has been recorded in the Judgment by Honorable Judge Mr. P.Jayabalan.

As all of you may be aware, Chennai witnessed the worst building collapse in recent times, when twin Tower buildings, with 11 storey’s, under construction, collapsed on 28

th June 2014 at 4.30 pm in

Mugalivakkam, Porur.

The ever alert media decided on a Talk Show and our Deputy Director Mr. Krishnan, CONCERT Trust was invited to a talk show at Sun news TV in “VIVADHA MEDAI” telecast at 9.00 pm the same night.

The points put forward on behalf of CAI were:-

1. Standardization of Construction Materials and mandatory standard of cement.

2. Social Audit by techno crafts of Consumer Organisations.

Again there was another TV Panel discussion on the Sun News Channel on 30th June. This was attended by Mr.R.Desikan, Chairman Emeritus.

Besides reiterating his strong views on the poor quality and high prices of cement, Shri.R.Desikan wanted that the role of CMDA must not rest just by giving approval of plans. Though the Chennai Corporation is expected to give a certificate on the structural worthiness of the buildings, the CMDA should enforce this more critically.

He also wants that the buildings are insured even during construction.

He decided that CREDAI, with its technical competence cannot washout its hands, just by suspending such builders from its membership. It needs to play a more important role.

The discussion lasted for an hour from 9.00 p.m.

CAI shall be sending a strong letter to the Government of India on the recommendations made above.

ACHIEVEMENT BY CAI IN THE CONSUMER FORUM

FLASH NEWS!!!-CONCERT attends a Talk show on Sun News regarding Role of Builders and Construction materials

CAI Consumer Newsletter Page 4

MISCONCEPTION REGARDING PROTEIN INTAKE!

There is a protein craze going on in this country. Since“fats are fattening and carbs are evil”, in many people’s minds protein is the only macro nutrient that’s safe to eat.

Additionally, protein has been shown to aid with satiety. As a result, we are seeing new products introduced to the market promising high protein content. There is only one problem-the average American consumes much more protein per day than needed by the body

The human body need about 0.8 grams of protein per kg of body weight. That’s about 55 grams per day if you weigh 150lbs. People in endurance training may need to up the number to 1.0-1.2 grams, which is 65-80 grams of protein per day. Bodybuilders may go even higher than that. But most of us are neither endurance athletes nor bodybuilders. , As mentioned earlier, we consumer much more protein than our bode needs, but it happens at uneven points during the day. We may go protein-less for breakfast by

drinking coffee and a fruit smoothie. Or, we may do soup and salad for lunch with a very small amount of protein. But then we’ll have a large steak (8 ounces) for dinner and get more than an entire day’s worth of protein in one fell swoop of 60 grams.

The right way to think about protein is distributing protein consumption evenly throughout the day. Since protein helps us feel satiated, getting 7-15 grams worth every 3 hours makes more sense than snacks and meals that have little protein value.

Before you run off to buy protein bars, look at the list below to see how easy it is to get protein from real foods • 4 oz chicken breast – 25 grams • 4 oz hamburger – 20 grams • Glass of milk – 8 grams • Low fat yogurt 10 – 12 grams • Greek yogurt – 14-18 grams • 1 medium egg – 6 grams • 2 slices of whole grain bread – 6-10 grams • 2 tbsp of peanut butter – 8 grams • Handful of almonds – 7 grams • Mozzarella cheese string – 6 grams

Ban on import of milk and milk products including

chocolates and chocolate products and candies /

confectionary / food preparations with milk and milk

solids as an ingredient from China may be extended

for a period of one year from 23rd

June, 2014 unless

there are dependable reports available about a

significant improvement in the situation

The Government of India (Directorate General of Foreign Trade) had imposed a ban on import of milk products from China vide notification No.46 dated 24.09.2008 for three months. The ban for three months was imposed as an interim step to enable other Departments to put in place suitable measures, to restrict import of contaminated milk products in the country. The ban was extended vide notification for several years and ended up with a notification for one year up to 23

rd June, 2014, unless there are

dependable reports available about a significant improvement in the situation.

CAI has written to FSSAI asking for greater clarity on how the situation will be monitored to ensure that the Ban is not lifted until the problem is completely addressed. INFORMATION TO THE

CONSUMERS ABOUT TNERC Complaints/grievances against the performance and

services rendered by the distribution licensee are

being addressed to the Regulatory Commission. The

consumers are advised to approach the “Consumer

Grievance Redressal Forums” established under the

provisions of the Electricity Act 2003 in every electricity

distribution circle office for redressal of their

grievances. The addresses of all the Consumer

Grievance Redressal Forums are available in the

Commission’s website as well as in the TANGEDCO’s

website www.tangedco.gov.in. In case of non-

redressal of grievance by the forum or any Consumer

who is aggrieved on the order of the forum, may

himself or through his representative make a complaint

to the Electricity Ombudsman who is attached to the

office of the Regulatory Commission.

EXTRACT FROM ADVISORY ON BAN ON IMPORT OF DAIRY PRODUCTS FROM CHINA

CAI Consumer Newsletter Page 5

Complaint:

I had purchased a Prestige Grill Toaster from, Malathy

Agency. The payment for which I made was Rs.960, after

discount. On using it just for the second time, it was noticed

that the non-stick coating was invariably peeling out,

which is dangerous to health. Hence, I had asked the

agency for a replacement. It was replaced with another fresh

piece, to my surprise even that gave me the same complaint,

so again I returned it and never wanted the same item as I

had already lost hope in it, I had placed a written complaint

on 4th

January 2014.However, I did not receive any response

from the agency nor customer service till date. I visited the

agency again on April 15th

and informed the store in charge

that I would to take any other kitchen ware instead, store in

charge did not accept. I felt it totally absurd to talk to the

store in charge, whose intention was to make fraudulent

money. I told him that I would take it up with the consumer

forum; the store in charge said “you may very well. Looking

forward for your assistance on this at the earliest to get

justice.

- Ms. Sudha

Solution:

After CAI’s mediation, the complainant received the replacement of the defective Toaster with a new one!

Ms. Sudha’s Testimonial: “My heartfelt gratitude for your timely help! Your prompt response is highly appreciated and it is worth recommending your service to everyone! Hats off! Yes, the complaint has got resolved to my complete satisfaction. I have received the replacement piece of the product last evening. If it was not your service, this would not have been possible. Thank you once again for your support and over whelming response.”

CONSUMER CASES SOLVED BY CAI-1

COMPLAINT AGAINST PRESTIGE

Complaint:

After painting in August '14, there was not Proper

Warranty Certificate issued as agreed. The Certificate

issued was signed by the dealer and the same was issued

by filling up the photo copy of the warranty form and signed

by the dealer of the Paint and not by Berger. Payment

was done with advance of Rs.50, 000 in cheque and the

balance in cash. I’m yet to receive the receipts. Despite of

many follow up calls and over mails to I receive only

excuses after excuses. Now on the exterior of the building

there are dripping marks of paint have started appearing.

Kindly intervene to get me the receipts, original

warranty certificates and repair the damage done as the

Weather Guard paint is guaranteed for 7 Years

Mr.S.Chokkappa

Solution:

After CAI’s mediation and continuous follow up with

the Opposite party, they finally completed the exterior

work to the complainant’s satisfaction.

Mr. Chokkappa’s Testimonial:

I thank you and CAI for the continuous efforts to get my many concerns addressed and completed. I'm happy that CAI supported my demand of making Berger meeting the customer requirements and their specifications as claimed in its advertisement. I thank you for all the support provided through your coordination and follow up during the last 6 months.

COMPLAINT AGAINST BERGER PAINTS

CONSUMER ALERTS!!

���� BEWARE OF ONLINE CONTEST: Do not enter a contest before reading the Terms and Conditions of the online portal!

���� THINK BEFORE YOU LEAP: Do not take any Insurance without complete knowledge of the Insurance Product before you sign up!

CAI Consumer Newsletter Page 6

CONSUMER CASES SOLVED BY CAI-2

COMPLAINT AGAINST SAMSUNG COMPLAINT AGAINST THE GAS AGENCY

Complaint:

I purchased a Samsung Washing Machine in 2009 from

Viveks for Rs.15700. I had problem with the water draining

and made complaints to them. They sent their person for

service and i paid Rs.244 and again i faced the same

problem within six months and again same was done. Then

even after six same problems occurred. I feel the service

done was not correct and they were only getting money

from me. I request you to look into it and take necessary

action.

Mr.Vikraman

Solution:

After CAI’s mediation, the complainant was asked to

pay only Rs.800 and the washing machine was serviced

to the complainant’s satisfaction.

Mr. Vikraman’s Testimonial: “I extend my heartfelt thanks to CAI who tirelessly followed up for me with Samsung and got the thing right. But for the unstinted efforts and cooperation, this would not have been achieved. Thank you once againfor resolving my complaint.”

Complaint:

I had given my Aadhar linked a/c number to the

aforesaid gas agency for getting the gas subsidy

amount. Unluckily, 3 months later, when I checked my

bank a/c there is no money has been credited subject to

the gas subsidy. When I approached the gas agency they

told a strange and hilarious thing that my subsidy amount

has been credited to another bank, in which I don't have

any a/c..! I seek your help and support for getting a speedy

redress for the issue.

Mr. Kunjan

Solution:

After CAI’s mediation, the subsidy amount was

credited to the complainant’s account.

Mr. Kunjan’s Testimonial:

“Thanks for your Help. We are glad to say that, we got the subsidy amount from the gas agency. Thank you very much for your perseverance to resolve the issue.... Once gain thanks for the efforts you have taken towards the issue.

CAI IS HERE TO HELP!!

Consumers Association of India (CAI)

A5, 2nd

Main Road, Thiruvalluvar Nagar,

Thiruvanmiyur, Chennai – 600041

Phone: (044) 24513191/92