Personal Loans - Pre-Closure
Thampi
(Querist) 23 June 2010
This query is : Resolved
I availed a personal loan from a pvt bank three years ago for a period of 48 months. I currently have 10 more installments left and do not have any arrears till date. Recently I happen to notice in my loan account statement that the bank has been charging cheque bounce charges for certain months. My repayment is facilitated through auto debit from my savings account with the same bank(and i use this account for my loan repayment only).I checked my savings account statement and found that there was sufficient fund in my account on the same date when the PL has charged me with penalty for Cheque bounce. The same thing had happened once earlier and i notified the bank and got it fixed after continuous follow ups. This time I am disgusted and would like to pre close the loan only because of the substandard service. I am not willing to pay the closure charges as the poor service from the bank's side is forcing me to close it. I am planning intimate the bank authorities regarding my decision and issue a directive for stop payment for savings account. Is this demand of mine compliant with our laws ?
Adv.Aiyer VLV
(Expert) 23 June 2010
first get information from your bank whether any rejection of autodebit was made for any reason?
ask the pvt bank which gave loan to give proof of cheque bounce?
do not ask for stop payment, that will be an offence under negotiable instruments Act
complain to ombudsman for banking. bank website itself will have information on this
check what is preclosing charges. some banks allow 75% payable without any charge and then decide whether you need to waste your time
finally, if it is value of your time versus getting justice, decision is yours.
regards
Parthasarathi Loganathan
(Expert) 27 June 2010
Repayment of loan is the primary responsibility of the borrower. Banks only facility recovery through periodical debit of instalments from SB/CD accounts. This would never construe that banks can step into the shoes of borrower as the latter needs to verify and check periodical repayments to the debit of his account to the credit of his loan accounts. Please be guided accordingly.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 29 June 2010
From which account the loan instalments are getting debited, same bank or other bank. If same bank you can claim damages otherwise not.
Regareding closure of your loan account you are the boss and no law is needed to do it. You have to pay the oustandings that is all.
