This has reference to the circular NHB(ND)/DRS/POL.16/2006 dated September 5, 2006, wherein the National Housing Board had revised the guidelines on Fair Practices Code for Housing Finance Companies to implement the same.
The Fair Practices Code sets the minimum standards for the Company to follow when dealing with customers. It provides information to customers and explains how the Company is expected to deal with them on a day to day basis.
1.1 Objectives of the Code
Is to Promote good and fair practices by setting high standards in dealing with Customers;
- Increase transparency
- Promote a fair and cordial relationship between customer and VASTU;
1.2 Application of Code
- This Code applies to all the products and services offered by VASTU, whether they are provided across the counter, over the phone, by post, through interactive electronic devices, on the internet or by any other method.
2. Advertising, Marketing and Sales
- We will ensure that all advertising and promotional material is clear, and not misleading.
- In any advertising in any media and promotional literature that draws attention to service or product and includes a reference to the interest rate, we will also indicate whether other fees and charges will apply and that full details of the relevant terms and conditions are available on request
- Customers can get information on interest rates, common fees and charges through any one of following:
- Calling our branches;
- Through our designated staff;
- From our website.
- If we avail of the services of third parties for providing support services, we will endeavour that such third parties handle customer’s personal information (if any available to such third parties) with the same degree of confidentiality and security as we would.
- VASTU from time to time will communicate to the customers the features of the products. Also, information about our other product offerings or promotional offers will be conveyed to the customer if we have their consent to receive such information or service to VASTU
- We have prescribed a code of conduct for our Direct Selling Agencies (DSAs) whose services we may avail to market our products/ services which amongst other matters requires them to identify themselves when they approach the customer for selling our products personally or through any electronic media.
- In the event of receipt of any complaint from Customers that our representative/ courier or DSA has engaged in any improper conduct or acted in violation of this Code, we will take appropriate steps to investigate and to resolve the complaint to customer’s satisfaction.
3.1 Applications for loans and their processing
- The ‘Application Form/ appropriate documents’ of VASTU may indicate the list of documents required to be submitted by the Borrowers along with the Application form.
- VASTU has a mechanism of giving an acknowledgement for receipt of Application form to its Borrower for availing loans. VASTU would inform the Borrower about its decision within reasonable period of time from the date of receipt of all the required information in full.
3.2 Loan appraisal and terms and conditions
- Normally all particulars required for processing the loan application will be collected by us at the time of application. However, in case we need any additional information we will contact the Customers immediately.
- We will convey the customer in writing, the amount of loan sanctioned along with all terms and conditions including annualized rate of interest, method of application, EMI Structure, prepayment charges etc.
- We will invariably furnish a copy of the loan document along with a copy each of all enclosures quoted in the loan document to every borrower at the time of disbursement of the loan.
3.3 Communication of rejection of loan application
- We shall communicate in writing to the customer whose application has been rejected
3.4 Disbursement of loans including changes in terms and conditions
- Disbursement would be made in accordance with the disbursement request made by Customers as per their requirements subject to standard terms and conditions mentioned in the Sanction letter / loan documents.
- Our Customers would be given notice of any change in the terms and conditions including disbursement schedule, interest rates, service charges, prepayment charges, other applicable fee/ charges etc. Changes in interest rates and charges would be in effect prospectively.
- Any Decision to recall / accelerate payment or performance under the loan document or seeking additional securities would be in consonance with the loan documents.
- All securities would be released on repayment of all due or on realisation of the outstanding amount of loan subject to any legitimate right or lien for any other claim we may have against Customers. If such right of set off is to be exercised, the Customers/borrowers will be given notice about the same with full particulars about the remaining claims and the conditions under which we are entitled to retain the securities till the relevant claim is settled / paid.
When one is considering being a guarantor to a loan, we will inform them about:
- Liability as guarantor;
- The amount of liability that one will be committing to us;
- Circumstances in which we will call on guarantor to pay up their liability;
- That we would have right to proceed against the guarantor without first proceeding against the borrower and without exhausting our remedies against the borrower;
- Whether VASTU has recourse to their other monies if they fail to pay up as a guarantor;
- Whether their liabilities as a guarantor is limited to a specific quantum or are they unlimited;
- Time and circumstances in which their liabilities as a guarantor will be discharged; and we will keep them informed of any material adverse change in the known financial position of the borrower to whom they stand as a guarantor.
3.6 Privacy and Confidentiality
We will treat all your personal information as private and confidential [even when you are no longer a customer], and will be guided by the following principles and policies as mentioned below. We will not reveal information or data relating to customer’s accounts, whether provided by customer or otherwise, to anyone, including other companies/ entities in our group, other than in the following exceptional cases:
- If we have to give the information by law;
- If there is a duty towards the public to reveal the information;
- If our interests require us to give the information (for example, to prevent fraud) but we will not use this as a reason for giving information about customer or customer accounts (including name and address) to anyone else, including other companies in our group for marketing purposes;
- If customer ask us to reveal the information, or if we have customer’s permission;
- If we are asked to give a reference about customer, we will need customer’s consent before we give it;
- Customer will be informed the extent of the rights under the existing legal framework for accessing the personal records that VASTU holds about the customer
- We will not use customer’s personal information for marketing purposes unless customer provides consent for the same.
4. Credit Reference Agencies
- When Customer opens an account, we will tell when we may pass the account details to credit reference agencies and the checks we may make with them.
- We will give information to credit reference agencies about the personal debts Customer owe us if:
- The Customer has fallen behind with the payments;
- The amount owed is not in dispute; and
- Customers have not made proposals that we are satisfied with for repaying your debt, following our formal demand.
- We will give credit reference agencies other information about the day-to-day running of your account if customer has given us permission to do so.
- In these cases, we may intimate customer in writing that we plan to give information about the debts Customers owe to us to credit reference agencies. At that time we will explain to customer the role of credit reference agencies and the effect of the information we provide can have on customer’s ability to get credit.
- We will provide Customers a copy of the information that we have given to the credit reference agencies, or provide their leaflets that explain how credit referencing works, if so demanded.
5. Collection of Dues
Whenever we give loans, we will explain to customer the repayment process by way of amount, tenure and periodicity of repayment. However if customer does not adhere to repayment schedule, a defined process in accordance with the laws of the land will be followed for recovery of dues. The process will involve reminding customer by sending notices or by making personal visits and/ or possession of security if any.
Our collection policy is built on courtesy, fair treatment and persuasion. We believe in fostering customer confidence and long-term relationship. Our staff or any person authorized to represent us in collection of dues or / and security repossession will identify himself / herself and display the authority letter issued by us and upon request display to customer his/ her identity card issued by us or under our authority. We will provide customer with all the information regarding dues and will endeavor to give sufficient notice for payment of dues.
All the members of the staff or any person authorized to represent us in collection or/ and security repossession would follow the guidelines set out below:
- Customers would be contacted ordinarily at the place of their choice and in the absence of any specified place, at the place of their residence and if unavailable, at the place of business/occupation.
- Identity and authority to represent would be made known to Customers at the first instance.
- Customer’s privacy would be respected.
- Professional and formal language will be used in all interactions with the customers.
- Decency and decorum to be maintained during visits to customers’ place.
- Normally, our representatives will contact Customers between 0700 hours and 1900 hours, unless the special circumstances of your business or occupation demands otherwise.
- Requests to avoid calls at a particular time or at a particular place would be honoured as far as possible.
- We will document the efforts made for recovery of dues and the copies of communications sent to you would be kept on record.
- All assistance would be given to resolve disputes or differences regarding dues in a mutually acceptable and in an orderly manner.
- Inappropriate occasions such as bereavement in the family or such other calamitous occasions would be avoided for making calls/visits to collect dues.
6. Grievance Redressal Mechanism
At VASTU, customer service and satisfaction are our prime focus. We believe that providing prompt and efficient service is essential not only to attract new customers, but also to retain existing ones.
In order to make VASTU’s redressal mechanism more meaningful and effective, a structured system has been built. This system would ensure that the redressal sought is just and fair and is within the given frame- work of rules and regulation.
6.1 Machinery to handle complaints/ grievances
Customers who wish to provide feedback or send in their complaint may use the following channels between 9:30 am and 6:00 pm, Monday to Saturday (except on national holidays).
Email us at firstname.lastname@example.org
Write to us at the below mentioned address:
Vastu Housing Finance Corporation Limited
A-203, Navbharat Estates,
Barrister Nath Pai Marg, Azad Nagar,
Sewri, Mumbai, Maharashtra 400015
In case the complaint is not resolved within the given time or if he/she is not satisfied with the solution provided by VASTU, the customer can approach the Complaints Redressal Officer. The name and contact of the Complaint Redressal Officer is as follows:
Mr. Sujay Patil
Email Id: email@example.com
We assure a response to letters / emails received through this channel within 15 working days.
The process of the complaints redressal unit will ensure closure of all complaints to the customers’ satisfaction.
If the complaint/dispute is not redressed within a period of one month, the customer may appeal to the regulatory authority of Housing Finance companies – the National Housing Bank – at the address given below:
National Housing Bank, Department of Regulation and Supervision (Complaint Redressal Cell)
4th Floor, Core-5A, India Habitat Centre, Lodhi Road,
New Delhi – 110 003.
Email Id: firstname.lastname@example.org
6.2 Time frame
To register complaints, the customers may use any of the channels mentioned above. If the complaint has been received in writing, VASTU will endeavor to send an acknowledgement / response within a week. Once the matter is examined, VASTU endeavors to either send a final response to the customer or an intimation seeking more time within one month upon receipt of complaint.
Complaints that are received at our end will be seen in the right perspective and would be analysed from all possible angles. The communication of VASTU’s stand on any issue will be provided to the customers. Complaints that require some time for examination of issues involved will be acknowledged promptly.
The aforesaid policy will be reviewed periodically /revised as and when there are any new changes incorporated by VASTU in handling complaints / grievances of the customer which includes introduction of new grievance channels, if any.