Heavy forex premium charged by bank
Mitesh
(Querist) 29 March 2014
This query is : Resolved
Dear Madam / Sir,
One of my client has recently came to know that its Private Banker has been charging a heavy premium on the Forward Contract booked.
It was identified that bank has charged more than 120 paise (in place of 2-10 paise) as bank's margin for booking forward contracts.
On its complain, bank has taken safe guard that they have given their verbal approval and signed contract notes. So bank is not liable for anything.
However, client was uneducated of the forward transactions and relied on good-faith to the bank.
Can my client sue bank on the ground of unethical/unfair practice? What is the forum and steps to be taken to charge bank so that it can recover its amount.
Rajendra K Goyal
(Expert) 29 March 2014
Service charges of private Banks are high. The client should have inquired before booking forward contract. Get a copy of the service charges of the Bank from net or otherwise and compare.
Public Sector Banks have more transparency in the matter. Compare service charges first and proceed.
Mitesh
(Querist) 29 March 2014
Dear Mr. Goyal,
Thanks for your inputs.
But my concern is what is the way ahead?
Can we proceed to ombudsman / consumer forum against this? And i yes, what is the best procedure?
Rgds
Mitesh
R.V.RAO
(Expert) 30 March 2014
write to banking ombudsman.
also write to dept.of banking,ministry of finance,north block ,new delhi.
first address a strong letter to bank chairman,(mark a copy to above addresses.),threaten the bank that the borrower wishes to close all accounts in the bank and transfer his limits to other bank unless the illegal charges are withdrwan immediately and are refunded.
