Foreclosure on lc limits
Manish
(Querist) 26 July 2017
This query is : Resolved
Dear sir
I have been banking with scb since 2010 and had lc limits with them
My renewal was due on 17th june 2016 and i refused to agree with there terms on prepayment charges
My rm kept on saying that he has put request for removing that clause and on feb 24 2017 he came to our office and said we can not extend documentation any further.
So in his good faith i cutted that clause with pen and signed there and submiited the document.
On 26th feb the bank dropped my limit without any info and told us if we dont sign the doc properlly they wont start our limits
Meanwhile on 15th march 2017 we got our limits from another nationalised bank and we started with our operations there
Now od utilization was nill since 1st march 2017 and lc payments finished on 20th june 2017
Now bank has started asking for 2% foreclosure charges agst our security documents.
Are we liable to pay the same ??
P. Venu
(Expert) 27 July 2017
The matter requires professional consultation.
krishna mohan
(Expert) 28 July 2017
yes it is based on the terms mutually agreed to. If nationalized bank send an official representation to the Head of the Branch or Internal Grievance officer detailing their going back and ask for waiver if already stipulated in the terms if not inform them it is not payable and demanding to return all your collateral. If still recovers after this you can approach Ombudsman of your region for remedy.
