Sonia S (Exe) 08 June 2011

ICICI Bank cheating .. goes againts RBI norms ,..

Hello,

I am an ICICI customer since last more than 5 yrs now. I have a Saving account + latter after 3 years also applied and got ICICI Credit card.

I had used ICICI card for around 2 years, and never got delayed in any sotrs of payment. Was very punctual on payments. Most of the time I used my ICICI saving account to transfer the funds to my credit card account.

In the last 3 months, I have suffered huge financial loss in business and there was not able to pay my CC bills on time. I starter getting phone calls almost daily from collection agencies etc, and I recieved every single call and told them my problem and assured them that the moment may be in another 2-3 months I get stable, I will pay back all my outstanding. Still they use to call me up. When I am struggline to pay money for my house rent, then how can I for credit card. Althgouh I planned to pay it in 2-3 months, as I expected some money by that time, which I told to the bank people, and was ready to pay any penanty cost.

Today I was very much surprised to notice, that ICICI bank has sezied my saving account, which has no relation to my credit card account. I had some money in the account, which they have blocked it. Now I cannot withdraw money from my saving account.

Somebody please tell me ....."As per RBI norms & Indian Law, are these banks allowed to block any customers saving account, with reference to any business that is not directly linked ??? I don't thik RBI has any such instruction. If a bank has a credit card defaulter, they should deal keeping thier people and fucntions in place. Not blocking the same customers Saving Account that gives bread & butter to the customer and thier family.

I consider this act of ICICI bank as illegal. No bank is supposed to seixe money of customer from other account without Customers Approval or intimation.

I am planning to sue ICICI in the court of law. I dont have money now for emergency, as without informing me the back has closed my Saving account that has money for my and family survival.

Somebody please answer ....

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9 Replies

adv. rajeev ( rajoo ) (practicing advocate) 08 June 2011

Issue notice to the bank to withdraw the seizer within given time, if bak failed then file a consumer case. Bank is no authroity to seize SB a/c at the most they could have initiated to recover your dues legally.

1 Like

yeteendra naidu (bank loan recovery agents) 08 June 2011

try to approach banking ombudsman.

Sagar Gour (A Visitor of this Forum) 08 June 2011

Give a complaint to police, Go to Banking Obudsman, RBI and can also go to Consumer forrum for irregular services and treating you in criminal way. As per Law no one can loot your money forcefully even if you are liable to pay to him/her. Entertain your legal rights immediately.

Abhimanyu Bind (Account & Audit Assistant) 08 June 2011

Take strict actions without delay as suggested by Mr. Raju.

Sonia S (Exe) 08 June 2011

Thank you every one for the suggestion.

I have initiated an email to the RBI Ombudsman. Let see if they do something.

Meanwhile, can any one of you clarify as per rule, is the bank allowed to withraw money or seize the Saving account of the customer without informing, towards any kind of Credit Card due or outstanding of the same customer. I think both are different departments and it should be illegal to transfer fund or seize Saving account of a customer who survives on it ... with our any legal approach or permissions ??

May I have all yours valuable input on this kind of activity from the bank ....

Sonia S (Exe) 08 June 2011

Thank you every one for the suggestion.

I have initiated an email to the RBI Ombudsman. Let see if they do something.

May I have all yours valuable input on this kind of activity from the bank ....

Thanks,

Sonia S

ravinder (head ) 08 June 2011

Bank has legal right which is called Banker's lien and also a right to set off. In simple terms it means that you owe money to bank under credit card and bank owes money to you due to credit balance in your savings bank. Bank can exercise its right of lien and set of your liability. Further, the credit card agreement normally contains a clause giving right to the bank to appropriate credit balances in any of accout in the event of default in payment of dues.

Kumar Doab (FIN) 21 June 2011

Bank is required to give you a written notice well in advance, to pay amount due to the bank as per their, own record i.e. principle amount+interest+penalties, or bank shall create a lien and or debit the amount. Did you receive any such notice? Bank can conveniently claim notice was sent by normal post. While you were always available on phone and attending to their phone calls, why the bank did not fix up appointment to deliberate on the matter with you and issue the minutes and appropriate advice to you in writing.

Bank are known to play tricks e.g. the notice shall reach you on or after the date fixed by bank in their notice, or the notice shall not reach you at all.

RBI guidelines are available at their website.

In your post you have mentioned that bank has seized your account, which could a lien has been created.

You can find out if bank has debited any amount. Pls note bank shall continue to levy interest, penalties even after creating the lien i.e. if you do not settle the matter, or get the lien vacated, whole amount may get set off and then bank may claim pending amounts.

You have mentioned that you have expressed to the bank that you willing to settle the amounts by payments from your end and bank has not offered you any settlement plan.

You should have the records of all phone calls, its date and time , phone numbers from which calls were made , name designation department address of the calling person, and at which calls were received, transaction number assigned to transaction on phone.

You may get in touch with a local lawyer having expertise in such matters.

subodhkumar (proprietor) 24 January 2012

you first give the strong letter to the bank saying your problem in writing and also mention about the saving bank a/c and tell them to remove the block to operate the same for day to day needs which they have illegally blocked and mark the copy to the chairman and copy to rbi

subodhkumar e.mail: daxkumar_123@rediffmail.com