At what point of time interest starts to accrue??
Rubul Das
(Querist) 08 December 2014
This query is : Resolved
Dear Members
Please help me on the following issue :-
I have applied for a loan on 1.08.2014 from my SBI CREDIT CARD for Rs.10000 (via internet by clicking on an option called "easy money"). Afterwards they sent a cheque on 3.08.2014 but in the Payee name they had written my name as RUBUL DAS-STATE BANK OF INDIA. Than on the same day I had presented my cheque to my banker(Corporation Bank) for clearing. But my Banker said that this cheque can't be cleared as the Payee name is different (since my name is Rubul Das and not RUBUL DAS- STATE BANK OF INDIA). Hence I asked SBI Credit Card division to issue me an another cheque citing reason as mis-match of name and they never did so, hence I have arranged loan from my pvt. sources and thus as my need for loan is over. I asked SBI Credit Card division to cancel the cheque as on 14.08.2014. In the month of October. I was shocked to see my credit card statement which which shows a debit balance of Rs.10000 and interest of Rs.1936 thereon. I have complaint this issue to their customer care executive and she told me that the issue will be resolve in 5 days, again which never happened. Than I receive my credit card statement for the month of Nov and December which again contains interest charges of Rs. 1936 and other penal charges for non-payment of dues. Again I complaint this and nothing happened in this matter and shockingly one of their executive showed at my doorstep and asked for payment.
Now members I want to ask you is it valid to charge interest without actual credit of amount and charging interest merely on the basis of issuance of cheque(which is never cleared). Even if it is valid(which is hardly justifiable) still the question remains same that due to bank's mistake in name why should the borrower feel the heat of interest when he have not utilize the amount...forgot utilize.... the loan amount never gets credited in borrower's a/c and it is all due to failure on the part of Bank.
Further I want to know which Act is applicable on this issue. I mean to say that is their any act or clause which describe the point of time when interest is charged on outstanding loan or amount??? And if possible please quote related case laws.
Further I want to raise this matter with banking ombudsman. So please tell me that- Are these type of issues are within the jurisdiction of banking ombudsman???
P. Venu
(Expert) 09 December 2014
The action of the Bank is highhanded. You may take up the matter with the Ombudsman, the RBI or before the Consumer Forum.
ajay sethi
(Expert) 09 December 2014
complain to OMBudsman of SBI . you can also move consumer forum against the bank for deficiency in service
Rubul Das
(Querist) 09 December 2014
Thanks a lot Members. I Appreciate your quick response
Rajendra K Goyal
(Expert) 11 December 2014
Q: I want to ask you is it valid to charge interest without actual credit of amount and charging interest merely on the basis of issuance of cheque(which is never cleared).
Ans: Yes, the amount is advanced, by debit to your loan account, cheque for this amount was sent to you. Once the loan account is debited, interest is started. You may submit the cheque for payment or not.
Q: that due to bank's mistake in name why should the borrower feel the heat of interest when he have not utilize the amount
Ans: It seems Your Bank did not presented the cheque. Moreover, In the record you must have mentioned reference of Your account with State Bank of India, if you have deposited the cheque with SBI the amount would have been paid. Cheque with Bank name is necessary to secure misuse by some other identical named person. Bank has taken such step as preventive measure against fraud.
Q: I want to know which Act is applicable on this issue.
Ans: Banks are covered under Banking ombudsman. You can also lodge complaint with the Consumer forum.
Q; And if possible please quote related case laws.
Ans: Case law not provided in this section.
