Loan settlement
SATINDER
(Querist) 31 January 2017
This query is : Resolved
Dear Expert,
My brother had taken a personal loan from A-Bank and at the time of availing loan had given ECS mandate form for deduction of loan EMI from his B-Bank. However A-Bank failed to submit EMI mandate form to his B-Bank and thus the EMI could not be deducted from his B-Bank. My brother again gave duly signed ECS mandate to the executive of A-Bank on their instructions, which A-Bank again failed to deposit in his B-Bank. Because of this everything my brother was asked to make payment through cheque after due date. Because of late payment, A-Bank ruined CIBIL rating of my brother and also levied late payment charges. My brother requested many times to A-Bank to get the ECS done but A-Bank avoided this on one pretext or other. The health condition of my brother is not good, he is presently on dialysis and have vision problem (Unable to see properly). Apart this he also lost is private job due to health condition. Now he is requested the bank to settle the loan by paying them one time full and final amount subject to giving NOC with regard to CIBIL rating and late payment waiver. The A-Bank is again avoiding this on pretext and other and forcing my brother to pay EMI. I need assistance what to do. A-Bank is also now making threatening calls to my brother. My brother health is not good to talk these people or to go to their branch. Kindly advice me
Kumar Doab
(Expert) 01 February 2017
Does your brother have acknowledgment and irrefutable evidence ( audio/visual/minuted/witnessed) of handing over the ECS mandate to bank/lender?
Bank are expected to provide proper service to incapacitated customers.
Has your brother recorded threatening calls?
You may help your brother in preparing proper written record and irrefutable evidence.
Thereafter write facts and details to BM under proper acknowledgment and fatsen the responsibility and default on bank and demand to call back the delinquency from CIBIL with a copy to you and to supply a copy of credit report from CIBIL. Bank may charge say Rs.50/ for it.
Then you can escalate to Circle officer/RM, Grievance Redressal cell, BO,RBI,DCDRF................
rajeev sharma
(Expert) 01 February 2017
In your post you have not mentioned the status of the loan account whether it is regular or irregular at present. Whether at any stage your brother lodged any written complaint against the bank for not using the ECS directions.
If the account is regular then the bank will not accede to any request of settlement. If the account is not regular and your branch manager is not listening you may approach higher authorities.
I would not like to suggest any litigation at this stage.
SATINDER
(Querist) 01 February 2017
1. My brother have telephonic conversation recordings with the bank officials where they have accepted their mistake and assured my brother to resolve the issue.
2. Yes till date my brother was paying the EMI regularly through cheque and only this month he stopped EMI because bank is avoiding to settle the loan.
3. Yes on behalf of my brother we have communicated the bank through email and telephone for closing the loan account and also described the entire grievance in writing. The bank replied in negative way i.e. did not accept their mistake and put entire blame on my brother. In that communication, we also stated the medical condition of my brother and his inability to approach any branch of bank as he is on dialysis, diabetic foot (operated), vision problem (unable to see or read properly).
4. We want to close the loan account by paying full and final balance loan amount and not interested to default in any manner.
SATINDER
(Querist) 01 February 2017
However, bank is not telling any final amount or settlement amount and refusing to settle the loan account.
Rajendra K Goyal
(Expert) 01 February 2017
It is the duty of the borrower to pay EMI in time. Bank failed to effect ECS, it was facility extended by it for loan adjustment, it has not misused ECS or any money received through it.
If the Bank is not ready to settle the amount, your brother has option either to pay and get rid or if not in a position to do so wait till the Bank itself offer settlement.
In both cases CIBIL score may not be improved immediately.
Bank can not threaten, if it does so record all threatening and proceed legally.
Kumar Doab
(Expert) 01 February 2017
Agreeing with experts.
Bank and bank employees shall obviously not accept their mistake as they become liable.
However if you have record/call recordings, you may succeed to establish deficiency of bank/ bank employees.
You have erred by refusing to pay the EMI.
Pay the EMI on time.
Settlement is adverse entry and can affect credit worthiness further.
It is not known what record you have.
Show all docs, record, and communications on record to a very able local counsel specializing in consumer matters.
Dr J C Vashista
(Expert) 05 February 2017
Unbelievable hypothetical story, the bank have a system to follow.
Discuss with bankers.
Guest
(Expert) 05 February 2017
I endorse the views of Dr. JC Vashist, as any default in payment of EMI is pointed out by the bank within the same month and does not wait for the period till that becomes NPA to be silently reported for bulging the CIBIL record.
SATINDER
(Querist) 05 February 2017
Not hypothetical story. Private Bank plays such games and we have every recording of telephonic conversation and mail communication with bank. It is true that bank always do not follow proper procedures. I don't know why? But it is true.
Many thanks for your valuable advice.
SATINDER
(Querist) 05 February 2017
Not hypothetical story. Private Bank plays such games and we have every recording of telephonic conversation and mail communication with bank. It is true that bank always do not follow proper procedures. I don't know why? But it is true.
Many thanks for your valuable advice.
rajeev sharma
(Expert) 07 February 2017
Mr. Satinder we can understand your problem and also the attitude of private banks. The staff there is ill trained and totally ignorant about banking norms and apathetic to the problems of customers and shun responsibility.
Best way is to send everything in writing to the higher authorities of bank. Pay whatever as per your account is due. If no one listens to you you first file a complaint with banking ombudsman of your state. There you need not to hire an advocate. You too may appear as an agent of your brother.
rajeev sharma
(Expert) 07 February 2017
Mr. Satinder we can understand your problem and also the attitude of private banks. The staff there is ill trained and totally ignorant about banking norms and apathetic to the problems of customers and shun responsibility.
Best way is to send everything in writing to the higher authorities of bank. Pay whatever as per your account is due. If no one listens to you you first file a complaint with banking ombudsman of your state. There you need not to hire an advocate. You too may appear as an agent of your brother.
rajeev sharma
(Expert) 07 February 2017
Mr. Satinder we can understand your problem and also the attitude of private banks. The staff there is ill trained and totally ignorant about banking norms and apathetic to the problems of customers and shun responsibility.
Best way is to send everything in writing to the higher authorities of bank. Pay whatever as per your account is due. If no one listens to you you first file a complaint with banking ombudsman of your state. There you need not to hire an advocate. You too may appear as an agent of your brother.
Guest
(Expert) 07 February 2017
Well Advised by Mr.Rajeev Sharma
