Processing charge,more than that notified in the website,was charged from a customer
Anoopkumar
(Querist) 26 February 2014
This query is : Resolved
Dear Sir,
I have availed a home loan(Rs.1 lakhs) from Federal bank.The processing charge of this loan,as notified in the bank website,is 0.5% of the loan amount(subject to minimum Rs.1000/-) plus service tax thereon.
The branch manager also has not brought any charge,contradictory to the above,to me.
But,after the loan was sanctioned,they deducted from the first disbursal of the loan Rs.3371/-,justifying that the rate,0.5% of the loan amount,is subject to a minimum of Rs.3000/-,although the website was not timely updated.
Experts,kindly advise me whether any legal sanctity is there in this decision of bank.
Thanks and regards,
Dr.V V Anoopkumar
ajay sethi
(Expert) 26 February 2014
bank is not justified in deducting Rs 3371 . since minimum amount of Rs 3000 as processing charges was not intimated to you bank was not justified in recovering the same from you .you can write to bank ombudsman protesting against bank decision of levying higher processing charges
Devajyoti Barman
(Expert) 27 February 2014
You can file complaint with Consumer forum.
Since amount is less, you better file complaint with Banking Ombudsman.
Guest
(Expert) 27 February 2014
Well advised.
RAJU O.F.,
(Expert) 27 February 2014
You may seek clarification from the Branch Manager, regarding the debit of Rs.3371/- from your account and if any excess was charged, you request to reverse such mistake. Presume that you also did not clarified the charges involved, before availing of the laon. I do not advise any legal proceedings in this case. Otherwise, they may classify the loan a/c as NPA at the earliest chance, since you had already availed of the loan.
Kumar Doab
(Expert) 27 February 2014
The Banks have to follow the RBI guidelines and Codes set by BCSBI...............
You may go thru the following link and info and attach the screenshot of charges posted at bank's website and BCSBI as given below/at BCSBI website at above mentioned link and write to BM and Nodal Officer, Chairman about deficiency and default and demand to refund the charges.
http://www.bcsbi.org.in/FAQ_Lending.html
What information is a bank required to give when one approaches them for a loan?
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Banks, along with the loan application form are required to provide full information about the interest rates applicable, whether floating or fixed as also fees and charges payable for processing, penal rate of interest for delayed payments, conversion charges for switching loans from fixed to floating rates and vice-versa, existence of any interest reset clause, time by which a decision on the application will be conveyed to the applicant and any other matters which will affect your interest as a borrower.
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Will a bank acknowledge the receipt of a loan application?
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Yes. Banks are required to give an acknowledgement for having received the loan application.
Will the bank give the borrower copies of the documents / loan agreement he has executed while availing the loan?
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Banks are required to give the borrower authenticated copies of all the loan documents executed by him / her along with a copy each of all enclosures quoted in the loan document.
Rajendra K Goyal
(Expert) 27 February 2014
It may be that charges have been revised. Get the latest copy of charges through RTI and if the charges are wrongly debited take up the matter with the Bank.
Kumar Doab
(Expert) 27 February 2014
What information is a bank required to give when one approaches them for a loan?
Banks, along with the loan application form are required to provide full information about the………………………..also fees and charges payable for processing
If bank has not communicated any charges in the prescribed format/form/pamphlet/brochure/publication then it can be deemed that there is no such charge.
Due to deficiency, default at the end of bank, BM you have suffered………………………..hence demand compensation as per internal compensation policy of the bank or approach Code Compliance Officer designated as per BCSBI, BO,DCDRF…………….
One reason for such conduct is that Bank, Bankers, BM’s usually conceals so as not to loose business since customers do compare everything.
T. Kalaiselvan, Advocate
(Expert) 28 February 2014
There is no transparency even in the nationalised banks on such issues. The latest rates might not have been updated in the bankers website, please check it up and then proceed with the legal action against the bank if at all there is a reason for one.
