Npa two wheeler loan recovery by icici bank
sachin shah
(Querist) 23 May 2014
This query is : Resolved
Dear Expert
I have taken a two wheeler loan from icici bank in 2007, i was paying regular EMI to them as my intention was not to do a default,
But sudden changes in market in 2008 or due to recession I was lost my job and i could not be paid last 10 to 11 EMI. now after 7 years they called me for recovery of that loan and asking me for 47000 which is far more (approximately 3000o to 35000 more)than actual principle remained.
There executive did wrong commitment that time about interest rate he told me 10% and they levied me 19% which i had given complaint to there customer care through a phone call.
Now i am in confusion what to do as i have applied for a car loan with same bank and i have a current account with them.
can they recover unpaid NPA loan from my current account and is it necessary to pay total amount or I can do principal settlement. can it affect my cibil?
BAALASUBRAMANNYAMM
(Expert) 23 May 2014
you have three problems with ICICI Bank. One is you have already availed two wheeler loan and defaulted in further EMIs where the bank is demanding you for repayment of total balance amount. 2nd one is: You have applied for a car loan with same bank and 3rd one is: Current account with ICICI.
If the current account and two wheeler loan accounts stands on your name and if funds are there in Current Account, there is a chance to deduct the two wheeler loan from your current account.
Next, coming to car loan: The bank wont give you car loan, since you were already defaulter.
Without obtaining your track record of payments, not only the ICICI Bank, any bank could not give you a loan, after getting CBIL report.
Kumar Doab
(Expert) 23 May 2014
During the 7 years if there is no admission of debt the loan may be time barred.
Seek opinion in person from your lawyer.
Your lawyer may opine to go thru loan application/agreement and check if an explicit declaration was inserted that Bank shall have a right of lien and set off and if you signed it.
Recovery of time barred loan should not be enforced.
Looking into various publication regarding tactics and conduct of M/s ICICI Bank you should protect the funds in Current a/c.
You may note that if the debt is time barred the delinquency may still remain in your credit history and the lenders may not lend to you.
If the deliquecny has vanished after 7Y then you may. Check your credit report with CIBIL.
sachin shah
(Querist) 23 May 2014
Thanks for your expert advice One more problem is there for the new account and new loan my pan card is different as i was not used any pan-card or i was not eligible for any income tax once a branch manager from icici came and opened my a/c his executive applied for new pan-card so i contacted my ca to close old pan card as i have given letter to him
what is best solution for clearing to matter with cibil clearance ?
Sudhir Kumar, Advocate
(Expert) 23 May 2014
as long as you are on defaulter list then no bank will give you any loan.
Basically it is you who is guilty you were not able to repay loan and still retained the two wheeler.
Sudhir Kumar, Advocate
(Expert) 23 May 2014
HOW PAN CARD IS DIFFERENT.
How can someone apply new PAN card for you without your signature.
Sudhir Kumar, Advocate
(Expert) 23 May 2014
you only said that you lost job and could not pay the loan and present demand is heavy.
You also say that you have applied for car loan. That way you reminded them of their NPA.
HOW IS IT THAT A PERSON WHO CANNOT PAY BIKE LOAN NOW NEEDS A CAR LOAN.
you have not stated when/how you regained paying capacity.
Sudhir Kumar, Advocate
(Expert) 23 May 2014
I do not like to differ with Mr Kumar Doab but now I have to.
someone in bank will loose his job if the amount lying in you account is not recovered.
Sudhir Kumar, Advocate
(Expert) 23 May 2014
I do not like to differ with Mr Kumar Doab but now I have to.
Further time-barred debt is not enforeable but once re-acknowledged the debt will no more remain time barred. Or they may have a suitable reply for not a filing suit in time.
Sudhir Kumar, Advocate
(Expert) 23 May 2014
further curiosity duE to paucity of information in given facts.
WHY BANK DID NOT CONTACT YOU.
ANY CHANGE IN PHONE NO OR RESIDENCE?
WHETHER YOU WERE RECEIVING STATEMENT ON OFFICE ADDRESS.
sachin shah
(Querist) 23 May 2014
After some years I started as real estate agent and by a honest practice now I am a reputed financial consultant just this year I got the capasity of arranging down payment some my own contribution and some from friends previous years I worked very hard
sachin shah
(Querist) 23 May 2014
They took my sign on pan card app
Rajendra K Goyal
(Expert) 23 May 2014
Bank can recover the outstanding from your deposit or current account.
PAN no. has no role in recovery.
Due to your default Bank may refuse you further loan.
When you knew that you have not paid back the previous loan due to circumstances, you should have started payment when you were in a position to do so.
sachin shah
(Querist) 23 May 2014
my address and phone no were changed, but my permanent address is same till date. they sent me some letters at my office but they have contacted few times after they were not conted
once i tried to contact them but they were quoting me heavy amount and they said i have to pay it in only one settlement now i can give them monthly emi or priciple settlement if they allows, my lawyer says you dont have to worry till you dont required loan but i have to make my record clean, so i wish to close this matter and seeking a good advice where i can save the money also and clean the credit report also
please someone suggest a good advise how to clear this loan
Kumar Doab
(Expert) 23 May 2014
All said and done you have used the good money of lender bank and it should be paid.
The new Pan Card is an old tactics to skip checks and one can land in trouble.
With new pan card, DOB, and with other KYC docs address etc might have changed.
The machine also has a limitation. IT can relate only the parameters it has been fed to relate.
More than this is not required as we prompt borrowers to pay.
It is reiterated that the time barred debt may remain in the record of default.
If you have the counsel of a good lawyer someone in the bank shall certainly loose job if bank extracts time barred debt and marks lien/sets off without explicit acceptance signed by you.
RBI had issued guidelines that banks should insert such clauses to get right to mark lien/set off.
M/s ICICI bank can press, pressurize its paid staff to do whatever it wants as it may think it can hide behind the argument that it was due to unauthorized act of staff.
Banks usually wash its hands with such staff and relieve them by extracting resignation. Those who know banks would know it.
Sudhir Kumar, Advocate
(Expert) 23 May 2014
SO they can plead for condonation of delay as as you not traceable to serve notice.
Sudhir Kumar, Advocate
(Expert) 24 May 2014
you said
"They took my sign on pan card app "
SO you were using different PAN No with what intention. Does the bank know this.
ajay sethi
(Expert) 24 May 2014
well advised by experts . better pay outstanding dues on your bank loan otherwise no bank will sanction you loan .
Kumar Doab
(Expert) 24 May 2014
You have posted that:
“my lawyer says you dont have to worry till you dont required loan but i have to make my record clean, so i wish to close this matter and seeking a good advice where i can save the money also and clean the credit report also
please someone suggest a good advise how to clear this loan”.
You already have a lawyer and lawyer has already advised you and advice is not bad.
Why are you asking in the forum to suggest lawyer without even writing where you are located?
It is a time barred debt. It can’t be recovered. That is why bank is not issuing any written communication.
The Bank M/s ICICI is well known for its practices and has been punished and penalized endless number of times as per various publications.
The apex court has decided in the matters pertaining to M/s ICICI Bank.
The banks/bankers wait for sky high interest to compile the debt to swell to add to its profits then resort to arm-twisting citing credit reports…………………..CIBIL!!!!!!!!!!!!!!!!!!!!!
Since the debt is time barred the bank shall happily agree to take principle amount only.
It shall agree to accept even lower than that.
Your lawyer already contacted by you, is right.
You must take care to get admission from bank that the offer is being made on time barred debt as per its internal records, waived off amounts recorded as ” Waived off” and not as ‘Written off’ in its internal records, and with CIBIL……………………………..and admission from bank in writing that the payments made by you shall not be treated as settlement and it shall have adverse effect on loan taking ability, credibility in future.
Your lawyer can tell you how to go about it.
Your lawyer may opine to declare in writing that the amounts being claimed by Mr/Ms……………………on by phone call(s) from phone numbers………………………on dated………………………..are false, are not due to be paid by you, and due if any left due to lapses at the end of bank ever are time barred and bank should not harass you any more……………………….
However this language should be drafted by your lawyer and checked by you……………………….
The bank and its recovery agency are alive and kicking again because you have applied for one more loan and bank and banker and it agents is hopeful to extract admission of old debt (principle+interest) and its recovery so that they are also able to earn hefty commission from payouts made by you.
Since you are aiming to get a clean credit history (which is otherwise impossible) you need to certainly go by smart legal advise and transact with bank without admitting debt and by extracting everything from bank in writing under proper seal and signature of BM and finally by a communication preferably from Nodal Officer validating the offer made to you by BM in writing from his official email id and by letter under his seal and signature also.
If you err getting a clean credit history shall be next to impossible!
malipeddi jaggarao
(Expert) 24 May 2014
I totally differ with the views of some of the experts.
You are simply bluffing and not giving the full facts.
In 2 wheeler loans, the repayment cannot be less than 36 months. You took loan in 2007, stopped paying from 2007 and you say only 10 or 11 EMIs were pending!. This is bluffing!!
After 7 years they are asking you to repay Rs.47000/- whereas the amount demanded is more by 30000/35000. Even if we take it is more by 30000; it should be 17000. If somebody keeps his deposit of 17000 after seven years it would be double i.e., Rs.34000 at deposit interest rate. Whereas if you apply penal rate on the contracted vehicle loan interest rate their computation is correct.
You changed your residence and mobile number.
Though temporarily your repayment capacity is impaired, you have not made any voluntary attempt to repay the two wheeler loan.
You have a current account with the same bank. Banker can exercise general lien and recover the entire outstanding dues from this account if the name of the accounts are one and same. For this whether debt is time-barred or not is not a point of discussion. Time-barred debt is not enforceable by law, but still recoverable. As the banker has your funds in his hands, he can recover the entire amount.
As regards sanctioning of new car loan, that bank will never sanction you.
For cleaning up your CIBIL record, there is no way. Close the account and ask the bank to remove you from defaulter's list filed with CIBIL.
You have applied for PAN CARD, though you have already one. This is a crime, and the IT people may take you into task.
Do not try to lead the forum by hiding the full facts.
Guest
(Expert) 24 May 2014
The bank can put a lien on your current as well as savings account till the loan is fully recovered.
You will have to amicably settle with the bank about interest element. Mere payment of principal may not help. Your CIBIL record would already have been affected. That would get affected to some more extent if the loan dues (including interest) are not paid.
