Dear Sirs
I have working capital facility with Dhanlaxmi Bank Ltd for more than 12 months. Now I want to close the account with them. As per sanction letter there is a clause of
Foreclosure charges will be charges @ 2% if within 12 months and 1% for balance of the months.
Now while closing the account they are charging me 1% of the sanctioned amount towards foreclosure charges. My argument with the bank is that, they are confusing themselves with foreclosure charges and prepayment charges. Foreclosure charges will be applicable only when i default the payment and the bank starts any recovery proceedings against me.
Whereas working capital provided to me is only for 12 months term and it is renewal every year. There is commitment charges which we are paying, now they also want pre-payment charges.
I wanted to know, whether my argument is right or wrong.
