Signing in ecs mandate w/out permission

There was a change in regulations if rightly remembered during some time back. The Bank must have given a choice to either to keep the same deduction with the term getting longer or otherwise the amount of loan to be increased to accomodate the same term of loan.

However in your case you may settle this with the Bank authorities.

Dear Madam,

I have gone through the ECS form of HDFC Limited available at www.hdfc.com/pdf/DCS%20mandate_web_2.pdf.

If you look at the other conditions given in the pdf file9(file attached), it says that "No fresh mandate is required for change in the EMI Repayment schedule.". So there is no fault on the part of HDFC Bank as such.The fault lies with the SBI that they have changed the loan tenure to 5 years from initially agreed 7 years. This you have to check up with SBI that the loan tenure has to be 7 years. Once the SBI correctsthe loan tenure to 7 years, there should not be any need for signing fresh ecs mandate.

Send a Notice to HDFC where you keep your account instructing them not to debit higher amount than what had signed in the ECS authorisation.  Bank once agreeing for 7 years period cannot arbitrarily change into 5 years.  You may file complaint before Banking Ombudsman against SBI making HDFC also a party.

Learned experts and members have given valuable advice. Kindly follow it.

The loan is sanctioned by SBI and installment is being paid from your SB a/c maintained with HDFC Bank.

It is felt that HDFC bank can not allow debit of an amount over and above allowed by you, under your signatures by hand on ECS form provided by SBI, and sent by SBI to HDFC bank for verification and approval.

The ECS form is for, SCHEME NAME: EMI PAYMENT – HDFC LTD. It is believed that the clause "No fresh Mandate will be required whenever a change occurs in the EMI
repayment schedule (Refer point 6 of the mandate form)" is applicable in case the loan is sanctioned by HDFC bank Ltd.

You may however check the copy of ECS form provided by SBI and signed by you, loan rules quoted by SBI. If clarity is required you may demand info from Nodal Officer of the SBI or raise RTI. If shall be appropriate to do it before you raise a dispute.