LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

amitomsharma   17 February 2015

Icici bank foreclosure charge

My wife had applied for loan from ICICI to purchase an office premise for herself. after three years when she approached the Bank that she wants to close the Loan account, then bank insisted to charge foreclosure, since the Company she was a Director of was a co-applicant. 

Banking ombudsman says that he has his limitations and cannot waive the foreclosure even when he is convinced of the misdoings of the Bank. He could just punish ICICI with 5000/-  whereas the charges were Rs 147000/- . the loan was being paid by her from her saving bank account. The company had nothing to do with it. 

Now now can someone advice me if I have some forum for relief ? This is extortion.

 

 

 



Learning

 15 Replies

Advocate Kappil Cchandna (Expert Bail & Criminal Defence Lawyer at Delhi Supreme Court of India)     18 February 2015

Dear, You can approach consumer forum for the same and before the same you can send the legal notice to them .... Kapil Chandna Adv 9899011450

Advocate Ravinder (Advocate/Attorney)     18 February 2015

I Agree with Kapil.

amitomsharma   18 February 2015

Kapil are you from Jaipur ?

Paramjit Singh Lamba (Senior Manager)     18 February 2015

You can complain RBI as well as Ministry of Financial Services for this mischief

This is in addition to your complaint with consumers forum

amitomsharma   18 February 2015

Paramjit I've already approached Banking Ombudsman. Now it has to be consumer court

AV Bagur Advocate (Advocate )     18 February 2015

It is not clear from your narration as to whether the company in which your wife was working has become NPA and as such ICICI has applied foreclosure norms on your wife, or on the company.  

Secondly, was your wife's company a corporate guarantor or applicant or in any way connected with the sanction of the loan amount to your wife. 

Thirdly, does the amount of Rs 147000/-  represent any penal charges on your wife or on the company.

Fourthly, as your wife's loan account been normal or has it attained any status of NPA etc.

The above inputs will help in taking a decision as to your course of action.

amitomsharma   18 February 2015

AV BAGUR The loan was in name of four applicants. My wife, her mother, her father and the Company in which My wife and her mother was Director. The loan was sanctioned in Jan 2010 and the repayment was being made from my wife's saving bank account. There has been no default in repayment till date. We asked for a foreclosure and hence got a letter from ICICI STATING that since company is an applicant foreclosure will be applicable. The loan has since been repaid under protest and we appealed before banking ombudsman, who said that he can only penalise ICICI to the tune of 5000/- but can't waive foreclosure charge. He suggests that we approach Consumer Court as banking circulars do not apply to them There has been no NPA. Rs 147000 are foreclosure charges. Each and every EMI has been honoured. Hope this clears the query. Thanks for the interest shown

T. Kalaiselvan, Advocate (Advocate)     20 February 2015

This is a fit case for deficiency of service and the consumer forum may be approached for relief and remedy.  However, please re-visit the terms and conditions of loan and the foreclosure conditions before taking any legal action against the bankers o be doubly confirmed about the right action in the course.

Biswanath Roy (Advocate)     22 February 2015

By a Notice RBI/2011-12/389 &  DBOD No. DIR.BC 107/13..OO//2011-12 dated 5th. June, 2012 Reserve Bank of India directed all Banks that they will not be permitted to charge foreclosure charges/pre-payment penalties on home loans on floating interest rate basis with immediate effect..

ADV-JEEVAN PATIL, MUMBAI ( DEEMED/CONVEYANCE OF BUILDING)     24 February 2015

Pl. confirm the terms and conditions of loan for which you have signed.  If foreclosure terms of payment include, you have to pay permissible prescribed charged. Nevertheless, the RBI circular dated 5th June,2021 as  is stated  herein above by expert is floated and it is of retrospective application, then you are not attracted to foreclosure payment. However, it is of prospective application, you need to pay permissible prescribed amount and not exorbitant that they demand.  Write to  them accordingly else to RBI for its misuse. 

Hope it is clear else E-mail : jeevansci@yahoo.com. or Whatsap: 9869400938

ADV-JEEVAN PATIL, MUMBAI ( DEEMED/CONVEYANCE OF BUILDING)     24 February 2015

Refer to the Terms of loan for which you singed. If it includes foreclosure, you have to pay permissible prescribed charges. However, as per the RBI circular June 2012, as referred to herein above by experts is implemented and it is of retrospective application, you need not have to pay. However, It is prospective application, after your loan agreement, then you are attracted for foreclosure payment admissible. Nevertheless, write to Bank accordingly. If they fail to agree, then write to RBI for its misuse.

Hope you are satisfied, else write to : E-mail: jeevansci@yahoo.com,  or 9869400938 

Mumbai

ADV-JEEVAN PATIL, MUMBAI ( DEEMED/CONVEYANCE OF BUILDING)     24 February 2015

Refer to the Terms of loan for which you singed. If it includes foreclosure, you have to pay permissible prescribed charges. However, as per the RBI circular June 2012, as referred to herein above by experts is implemented and it is of retrospective application, you need not have to pay. However, It is prospective application, after your loan agreement, then you are attracted for foreclosure payment admissible. Nevertheless, write to Bank accordingly. If they fail to agree, then write to RBI for its misuse.

Hope you are satisfied, else write to : E-mail: jeevansci@yahoo.com,  or 9869400938 

Mumbai

ADV-JEEVAN PATIL, MUMBAI ( DEEMED/CONVEYANCE OF BUILDING)     24 February 2015

Refer to the Terms of loan for which you singed. If it includes foreclosure, you have to pay permissible prescribed charges. However, as per the RBI circular June 2012, as referred to herein above by experts is implemented and it is of retrospective application, you need not have to pay. However, It is prospective application, after your loan agreement, then you are attracted for foreclosure payment admissible. Nevertheless, write to Bank accordingly. If they fail to agree, then write to RBI for its misuse.

Hope you are satisfied, else write to : E-mail: jeevansci@yahoo.com,  or 9869400938 

Mumbai

ADV-JEEVAN PATIL, MUMBAI ( DEEMED/CONVEYANCE OF BUILDING)     24 February 2015

Refer to the Terms of loan for which you singed. If it includes foreclosure, you have to pay permissible prescribed charges. However, as per the RBI circular June 2012, as referred to herein above by experts is implemented and it is of retrospective application, you need not have to pay. However, It is prospective application, after your loan agreement, then you are attracted for foreclosure payment admissible. Nevertheless, write to Bank accordingly. If they fail to agree, then write to RBI for its misuse.

Hope you are satisfied, else write to : E-mail: jeevansci@yahoo.com,  or 9869400938 

Mumbai


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register