I enjoyed Cash credit facility from a nationalized bank in 2008 around one crore. The business was slow as all of us knows and I am not able to show the required turnover. The bank made charges like OD Penal interest, inspection charges, renewal charges etc to abnormal amounts without making any alerts to me in advance.
They were insisting me to close the account at the earliest. I was regularly paying the interest portion and reduced the limit to 75lakhs also in 2012. I made protest against the abnormal charges and written letters to revert the charges. The interest also been hike by the bank despite my protest and request that mu business was not good. The AGM of the bank promised to waive all the abnormal charges at the time of closing the loan.
Recently in Aug.2014, My son helped me to take a loan on his name in other bank and we closed the loan. The bank did not waive any of the charges. They did not commit any thing in writing except the verbal promise by AGM and waiving the charges on one occasion. After closing the loan, I wrote to the GM of the bank who turned down my request after a month's time. I complained to the Banking Ombudsman in detail with all my correspondence regarding the waiver of abnromal charges. Even though the bank did not commit any thing in writing regarding waiver of charges, they did not even replied to my letters regarding the abnormal charges. The Banking Ombudsman did not apply their mind in length into my complaint and closed it saying they can't take it for matters in 2008 and all along I was continuing banking with them.
The bank charges were for example, inspection charges for one time inside Chennai city for a distance of 18km or less, of Rs.6000 to 13600. One time they reverted on my request and other times they did not and made verbal promise and cheated me. I am thinking of making an appeal to Banking Ombudsman appellate. Learned counsels kindly advise me.