Renewal charges and foreclosure charges by hdfc bank
SAKET
(Querist) 15 January 2016
This query is : Resolved
Dear Sir,
we were enjoying cash credit limit with HDFC Bank Ltd right from 2011.In October first week i have applied for seasonal loan to fulfill my needs,in second week higher authority of credit department alongwith my relationship manager visited and verified our shop and also taken necessary documents required and some blank signed letter head & committed it will done in week time.
But thereafter till 17.11.2015 i.e.due date of renewal of our facility,there was no communication from bank.meanwhile we tried to communicate ,we dont get any response from them.
and for this reson of lack of priority to a preferred customer like us ,i have decide to switch our account to icici bank after the expiry of renewal date.
On 01.12.2015 bank have debit us renewal fees without my knowledge or any communication.When ask them how could you debit renewal charges without any our confirmation,relationship manager answered me that-We have you renewal request on your letter hesd hence renewal done and if any other bank wants to take over your facility you will have to pay foreclosure charges @2.29% as per terms and condiition in sanction letter.when i read sanction letter i come to know that ,in case of takeover during the tenure of loan i will laiable for 2% charges, but my tenure is lapsed on 17.11.2015. when i request him to assist and waive the said charges,i got shocking answer that he is just an employee.
Further i tried to communicate higher official,national head of said department,grievance redressal office regarding same matter but they are not entertain me at all.
I didn't apply for renewal nor accepted and
signed any sanction letter.
please help me and advice me what to do now
Rajendra K Goyal
(Expert) 15 January 2016
Have you given in writing to Bank regarding your intention to discontinue relationship and to get facility from other Banker after due date of renewal?
Has the Bank refused to allow to operate your loan account pending renewal?
Have you given renewal documents to HDFC?
If you have not informed in time / got consent of bank to switch over to other Bank and continued operation in the account, as per procedure and you are liable to pay renewal charges / foreclose charges as per your agreement and procedure after due date of renewal.
Rajendra K Goyal
(Expert) 15 January 2016
However, if you are aggrieved, you may send letter for refund and if no action, lodge complaint to Banking ombudsman and RBI, chances of refund are less.
Kumar Doab
(Expert) 15 January 2016
Reply to the points raised by Expert Mr.Goyal.
You might have signed the explicit clause in the agreement.
SAKET
(Querist) 15 January 2016
Dear Rajendra sir.
i didn't gave any renewal documents , but some document i had given that for only seasonal limit.
Bank official are misusing those documents for renewal.
Bank didn't intimate me regarding due of renewal date.
i want to know regarding ,the tenure of loan is for 1 year that means it finished on 17.11.2015,and bank is saying that they have enough document to renewal i have given for seasonal limit in first week of October,then why bank debit us on 01.12.2015.
And i didn't signed any agreement or sanction letter how could i applicable for foreclosure charges.
Adv. Yogen Kakade
(Expert) 16 January 2016
Send a legal notice to the bank asking for justification.
SAKET
(Querist) 16 January 2016
Dear sir,
i have already sent legal notice on 01.01.2016 but didnt get any reply.
M V Gupta
(Expert) 16 January 2016
As the Bank's officials say that they have enough documents for renewing the facility, call for copies of the documents. If they do not respond, file a RTI query for supply of the copies of the documents. The bank will have to reply within one month. The reply will throw light on the documents which they say are the basis for renewal. u have to also ascertain whether the bank has used the blank signed letter heads given by you.the above information will be useful for u to file a complaint before the Banks Ombudsman whose office is situated in the RBI office of ur State.
Rajendra K Goyal
(Expert) 16 January 2016
1. Seasonal limit sanction documents are part of / connected with regular limit and are not separate. Process after sanction may differ.
2. Cash Credit limit is sanctioned for one year and has to be renewed yearly (please refer your previous sanction letter / agreement), however renewal process is generally formal and limited to analyse of last year balance sheet etc.. If you have submitted your balance sheet of previous year, Bank would proceed on this for renewal.
3. Limit was renewed in Nov, balance sheet dated 31.03.2015, must have been submitted to Bank, can solve the purpose of renewal.
Since you have not mentioned / informed in writing to Bank that you want to switch over / take account to other Bank and formal permission was not taken from present Banker, practically Bank was right in renewing the limit.
HDFC Bank being of private sector, may not respond RTI.
SAKET
(Querist) 16 January 2016
Sir they are miss using my documents
K.S.Srinivas
(Expert) 26 January 2016
File RTI application as advised by the expert Sri M.V.Gupta as the private banks are also covered under RTI act.
M V Gupta
(Expert) 27 January 2016
Misuse of the letter heads given by you with ur signature in blank amounts to forgery. In fact u should not have given such letter heads, as it may be argued by the bank that they have been authorised to use them for renewal. But this can be rebutted by you. First get the docs under RTI as suggested by me in my earlier posting before deciding further action.
