Ashish Rawat 03 February 2018

Action for misguiding customer for insurance with loan

Can we take action against bank if thier sales person misguided to sell insurance with loan.Salesperson informed the insurance is compulsary and after knowing the rules that insurance can not be imposed by bank mentioning it compulsary bank is denying to cancel the insurance saying that free look period is over however customer care said it can be cancelled anytime.Bank persons are saying that our customer care is providing wrong information.

Reply Follow

7 Replies

SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 03 February 2018

Beliving all the sales talk be it Bank, be it Insurance or be it car sales man, is always fraught with lots of ifs and buts. We should not get carried away with sales talk but should make our own enquiries to take proper decision.

In the instant case, can you provide any witness in Court to prove that the Bank Sales person informed you that for granting loan, insurance is a must? If you can provide such evidence, even other person/s who listened to the conversation with you, and the Witness should stand cross examination and convince the Court that what he is telling is truth. Then only you can venture into filing a case. Otherwise, its a futile exercise.

Dr J C Vashista (Advocate) 04 February 2018

Look before you leap.

Confirm, analyse and decide for any investment.

However, issue legal notice to the salesperson(s) and their employer (HOD) for giving false information and file a consumer complaint and/or suit for compensation of damages caused due to false information qua their product.

Ashish Rawat 05 February 2018

Yes , I have a phone call recording in which they said it is compulsary.So I recorded it.

Ashish Rawat 05 February 2018

I needed some evidence so I called them on a phone call and asked them if Insurance is mandatory and then recorded it.Is that enough to file a case against them?

SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 06 February 2018

Phone Call recording is not admissable as evidence.

SIVARAMAPRASAD KAPPAGANTU (Retired Manager) 06 February 2018

You can try filing case against the bank in Banking Ombudsman. If Ombudsman gets similar cases against the same bank, possibility is that the case may be decided in your favour. Its only a possibility. Of course filing a case in Ombudsman does not cost you or requires a Lawyer. You may try this avenue.

You may find details about Banking Ombudsman in the following Link:

FAQs about Banking Ombudsman

Following link helps you to file complaint in Banking Ombudsman

How to file complaint in Banking Ombudsman