Icici bank foreclosure charge


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.

 

 

 

 
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Lawyer at Supreme Court of India

Dear, You can approach consumer forum for the same and before the same you can send the legal notice to them .... Kapil Chandna Adv 9899011450
 
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Advocate/Attorney

I Agree with Kapil.

 
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Kapil are you from Jaipur ?
 
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You can complain RBI as well as Ministry of Financial Services for this mischief

This is in addition to your complaint with consumers forum

 
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Paramjit I've already approached Banking Ombudsman. Now it has to be consumer court
 
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Advocate

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.

 
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AV BAGUR The loan was in name of four applicants. My wife, her mother, her father and the Company in which My wife and her mother was Director. The loan was sanctioned in Jan 2010 and the repayment was being made from my wife's saving bank account. There has been no default in repayment till date. We asked for a foreclosure and hence got a letter from ICICI STATING that since company is an applicant foreclosure will be applicable. The loan has since been repaid under protest and we appealed before banking ombudsman, who said that he can only penalise ICICI to the tune of 5000/- but can't waive foreclosure charge. He suggests that we approach Consumer Court as banking circulars do not apply to them There has been no NPA. Rs 147000 are foreclosure charges. Each and every EMI has been honoured. Hope this clears the query. Thanks for the interest shown
 
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Advocate

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.

 
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Advocate

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..

 
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