My wife had applied for loan from ICICI to purchase an office premise for herself. after three years when she approached the Bank that she wants to close the Loan account, then bank insisted to charge foreclosure, since the Company she was a Director of was a co-applicant.
Banking ombudsman says that he has his limitations and cannot waive the foreclosure even when he is convinced of the misdoings of the Bank. He could just punish ICICI with 5000/- whereas the charges were Rs 147000/- . the loan was being paid by her from her saving bank account. The company had nothing to do with it.
Now now can someone advice me if I have some forum for relief ? This is extortion.
You can complain RBI as well as Ministry of Financial Services for this mischief
This is in addition to your complaint with consumers forum
It is not clear from your narration as to whether the company in which your wife was working has become NPA and as such ICICI has applied foreclosure norms on your wife, or on the company.
Secondly, was your wife's company a corporate guarantor or applicant or in any way connected with the sanction of the loan amount to your wife.
Thirdly, does the amount of Rs 147000/- represent any penal charges on your wife or on the company.
Fourthly, as your wife's loan account been normal or has it attained any status of NPA etc.
The above inputs will help in taking a decision as to your course of action.
This is a fit case for deficiency of service and the consumer forum may be approached for relief and remedy. However, please re-visit the terms and conditions of loan and the foreclosure conditions before taking any legal action against the bankers o be doubly confirmed about the right action in the course.
By a Notice RBI/2011-12/389 & DBOD No. DIR.BC 107/13..OO//2011-12 dated 5th. June, 2012 Reserve Bank of India directed all Banks that they will not be permitted to charge foreclosure charges/pre-payment penalties on home loans on floating interest rate basis with immediate effect..