THEFT OF CAR AND LOAN REPAYMENT
SUNIL AGGARWAL
(Querist) 19 June 2011
This query is : Resolved
DEAR SIR.
MY CAR WAS STOLEN AND THE INSURANCE COMPANY GAVE THE INSURED AMOUNT CHEQUE TO FINANCER BANK HDFC BANK.
THE BANK AFTER DEDUCTING THE PRINCIPAL OUTSTANDING ALSO DEDUCTED 4% TOWARDS PRE PAYMENT OF LOAN AMOUNT.
PLEASE GUIDE WHETHER IN CASE OF THEFT THE AMOUNT FROM INSURANCE COMPNAY AMOUNTS TO PREPAYMENT
prabhakar singh
(Expert) 20 June 2011
Give a representation to bank objecting the ex parte deduction made on the ground of pre payment,say them you have never asked the bank to to adjust the loan as a whole before time.say you are ready to pay installments on due dates and ask for credit of surplus in your a/c and offer it to deposit as f.d.in guarantee of the loan amount.
If they fail to comply file consumer complaint to get redress in the matter.
RAJU O.F.,
(Expert) 20 June 2011
Because of theft of hypothecated car, the bank cannot take advantage of 4% of insurance amount purportedly as preclosure charges.You speak with the bank officials and on failure, issue legal notice and make a complaint to Banking Ombudsman for remedy.
Guest
(Expert) 21 June 2011
YES i AGREE WITH SINGH SIR
SUNIL AGGARWAL
(Querist) 23 June 2011
dear sir
Thanks.
Since bank has not agreed to my plea that i have not closed the loan a/c and they say in every case we deuct the prepayment charges. Sir can you guide me the time frame in which I can approach the consumer court for redressal.
AA RAMAKRISHNAN
(Expert) 26 June 2011
Mr. Agrawal:
Law is nothing but common sense. You had a hypothecation agreement with the Bank where the security was your vehicle. The security is now lost. You have to make good of the losses. Since it is insured against theft you are compensated by the insurance co. As per the charge created the entire cost of the vehicle received from the insurer will go to the Bank since they have the first charge. Now the agreement has come to an end. You are clear up to this point. The entire amount is received back by the Bank and the loan account is closed and since the vehicle is lost no question on their part to discharge the liability, even they will issue you a no due certificate. Now the stolen property has become the property of the Insurance Co. In a later date if the vehicle is traced it will go to the insurance co. Now the question is whether the Banker is right in charging a foreclosure amount in a tragic event like yours. This will depend upon the relation you have with your Banker. As per the law, they have the right to charge the extra amount, according to the hyp. agreement and it is their prerogative to recover from the best suited source. The agreement is not on humanitarian grounds. When the loan was given to you the Bankers had adopted certain formalities/assurances with RBI or other financial institutions. Now they are complying with that.
RAJU O.F.,
(Expert) 01 September 2011
Unless there is specific clause in the hypothecation agreement, for charging preclosure charge even if case of claim amount received from the insurance company, the bank cannot debit such charges illegally.
Advocate. Arunagiri
(Expert) 01 September 2011
The bank can not collect foreclosure charges.
Because the loan was not foreclosed. It is only a insurance claim settled in favour of the bank.
