Hi, I'm facing a hard time dealing with ICICI bank. My dad took a loan of 8,61,632.00 Lacs in 2002 from ICICI bank. My dad passed away on 7th January 2019. Total amount paid to the bank so far is 16,39,950.00 Lacs. However, the pending amount still remains 904,963.42 Lacs. And also, the interest rate on this loan is the highest currently at 14.70%, this also peaked to 15.75 % in 2013. The current interest in the market for home loans under pclr is around 9%. Not only this, but there are also some bogus other charges of 1.55 Lacs, which according to my understanding shouldn't be there. After my father's demise, I've been to various branches of ICICI to understand why there's a gap between market rate and our current rate of interest but had no luck with any of the branches so far. There many things which went wrong with my case since a long time. Firstly, most nationalised bank automatically converted PLR to MCLR in 2010, but I fail to understand why ICICI didn't do it? Are policies different for ICICI? Secondly, even after recovering almost twice the principle amount from us in this case, why principle still to be recovered stays at ₹7.xx lacs? Thirdly, my late father gave a written application requesting ICICI bank to close his salaried account, still till today we are charged with a fine of ₹200 in every month on EMI. why is that even after giving a written application copy of which I have, account wasn't closed and fine is still charged? Fourthly, why we never received any letters from ICICI regarding latest interest rate? I'm looking for honest help from experts in this topic.
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The bank cannot legally recover any amount from the legal heirs of your father as their case would be barred by limitation.
Limitation period to initiate recovery proceedings is 3 years. Since, they did not take any action till date, their case would not be maintainable in court.
You must be receiving detailed statements of accounts it would reflect interest paid and principal amount repaid each year
2) cross check with bank contention that Rs 7 lakhs is payable
3) bank should not charge fine after request for closure of account
This is what icici bank does to its customers. Nothing new. I have dealt with far worse complaints. File a complaint against the bank in the consumer redressal forum in delhi.
The figure you are quoting makes it clear that the bank is resorting to arm twisting methods and calculating which has no legal activity to extract money many time mroe than your father borrowed from t.
There was mistake and laches on your part as well as you chose to keep silence and danced at the tune of the bank.
Now send the bank a legal notice closing the loan account and return the money which it had collected on excess.
If it does not act as er your notice then file a case before the consumer forum wherein you are executed to get many reefs including enough damages and compensation.
You can file police complaint for harassment as well as you can file consumer complaint for deficiency of service
Dear Client
first of all, you should take a detailed statement from the bank. The bank has the right to levy penal interest but cannot recover double the principal ammount. The bank has been illegally reflecting such a huge amount as unpaid. You may file a complaint before the bank's ombudsman.
Their managers keep on changing and their replies are also absurd which shows that they're just passing time and trying to raise penalties every month. Moreover, I've not paid the EMI's for the last 2 months. Can I still raise this with banking ombudsman and consumer forum or should I pay the EMI's 1st and then raise the concern with these bodies?
You should continue paying the EMIs to the Bank, else the the bank will initiate recovery proceedings against you.
You shouldn't pay anything. File a complaint immediately.
Pay EMI first and then complain to bank ombudsman
Yes you can still raise.
You can pay EMI at present.
You have to file the complaint at the office of the ombudsman under whose jurisdiction your bank branch is located.
You can put it down on a plain paper, send an e-mail, or fill the complaint form on the RBI website. There are no charges for filing a complaint.
Yes raise your objection before the banking ombudsman as per latest advise to the people immediately.
Hi,
You are suggested to raise the issue immediately (ASAP) with the banking ombudsman and if the issues not solved, take the matter to court, else they will do misdeeds on the name of recovering their money.
But why are payign father`s debt ? It is mortgage loan. And you have already paid double. Stop payign Emi`s. Is this loan ever defaulted ?
You can file this matter in the District Consumer Forum. There are many banks who do the same thing and thus harass the customers. I am dealing with many such matters. Consumer forum might take some time but you will surely get the relief you want
You can file the complaint without paying the EMI but it will be better to clear the EMI and then file the complaint so that you will have upper hand in the case
Dear Sir,
Since the loan was taken way back in 2002 and till today it is pending, therefore the due amount keeps on increasing. These days, usually the banks send emails on registered e-mail id or message on registered phone number regarding change of rate. Also, these private banks can keep a different rate of interest.
Firstly, if the loan was taken from Delhi, I will advise you to go to the Branch head office and meet the ombudsman, categorically explaining the series of events.
Secondly, the Bank is bound to close the account on receipt of the written application. You should also bring to the notice of ombudsman the issue regarding the closure of the bank account.
Thirdly, you need not pay any more EMI's. It is advisable to pay a visit to the Ombudsman and on failing to get a satisfactory result, you should file a complaint in Consumer Forum.
Hope this answers your query.
Best!
You have so many questions put down here in this forum and insist on honest reply as if the lawyers here are the bank employees who you think may give you dishonest replies.
Did you put all these questions to the bank in writing and sent them by registered post seeking their reply,
if yes, what was their reply, if there was no reply did you send a ;legal notice to them seeking clarification and also return of excess recovered amount?
Or you have not clarified these details from the bank authorities at all?
The bank is supposed to clarify you the details of loan,m its interest and the excess charges recovered from you and the reasons therein.
If they dont clarify you then you have two options i.e., to approach banking ombudsman for remedial action or to approach consumer forum seeking compensation for deficiency in service.
The interest charges by private banks will be on monthly compounded basis on the defaulted repayments.
Before approaching the legal forum, just confirm that you fare not at fault in repayment.
Once your loan repayments are updated then you can rightly approach such legal forums to get your grievances redressed properly and legally.