GUIDELINES ON FAIR PRACTICES CODE FOR HFCs

1.  OBJECTIVES & APPLICATION

1.1  Objectives of the Code

The code has been developed to

a)    promote good and fair practices by setting minimum standards in dealing with customers;

b)    increase transparency so that the customer can have a better understanding of what he/she can reasonably expect of the services;

c)    encourage market forces, through competition, to achieve higher operating standards;

d)    promote a fair and cordial relationship between customer and  HUDCO; and

e)    foster confidence in the housing finance system.

1.2. Application of the Code

All parts of this Code apply to all the products and services, whether they are provided by the HUDCO across the counter, over the phone, by post, through interactive electronic devices, on the internet or by any other method.

2. HUDCO shall act fairly and in a transparent manner:

   HUDCO shall act fairly and reasonably in all dealings with customers, by  ensuring that:

a)   They meet the commitments and standards in this Code for the products and services they offer and in the procedures and practices their staff follows.

b)    Their products and services meet relevant laws and regulations in letter and spirit.

c)  Their dealings with customers rest on ethical principles of integrity and transparency.

2A. HUDCO shall transparently disclose to the borrower all information about fees/charges payable for processing  the loan application, the amount of fees refundable if loan amount is not sanctioned/disbursed, pre-payment options and charges, If any, penalty for delayed repayment, if any conversion charges for switching loan from fixed to floating rates or vice-versa, existence of any interest re-set clause and any other matter which affects the interest of the borrower. In other words, HUDCO will disclose ‘all the cost’ inclusive of all charges involved in processing/sanction of loan application in a transparent manner. It shall also be ensured that such charges/fees are non-discriminatory.