Bank charged 1% less, recovery in compounded interest
Nishant Chaudhary
(Querist) 17 January 2017
This query is : Resolved
I took an educational loan which has mostly been repayed over the period of six years.
Initially my parents took care of interest payments for for years of my education. Then I started repaying it after completion of my studies and it took me six years to finish it. Few months before it was supposed to be finished bank charges recovery of 49000 as they charged me 1% less.
If they had charged it as simple interest then amount would have been around 10k but they charged compound interest from back date.
Am I in the wrong to expect that they should have charged simple interest for their mistake? Are the any previous similar cases where court decided in the favour of customer?
Obtain in person or by demand in writing under proper acknowledgment and relate.
Nishant Chaudhary
(Querist) 17 January 2017
I have obtained the documents but there is no mention of how they'll deal with the errors on their part.
Loan was on compound interest and it was being paid accordingly but because they made a mistake six years ago, I was charged the interest in back date.
Rajendra K Goyal
(Expert) 17 January 2017
Bankers charge compound interest. It never account for with simple interest.
Please refer the sanction letter / agreement whether the interest to be charged was with daily / monthly / quarterly rest.
If the interest charged wrongly write to Bank and if no effect move to consumer forum.
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