Srivatsa R (None) 07 December 2012

Loan on credit card

Hi all,

ICICI bank offered a loan on my credit card for Rs.229000 during May 2007. This loan account was converted to a credit card account and billed under credit card norms. The loan period was 48 months

I paid 33 EMIs on time and wanted to close the loan. I negotiated with the local ICICI Bank collection centre and paid Rs.60500 on May 2010.Total payment made as on may 2010 was Rs.294,000 as against the Rs. 324500 which would have been the amount if I had paid the 48 EMIs

ICICI bank fired the employee who offered the settlement and refused to give me a closure letter. I raised several complaints from May 2010 - Oct 2010 with ICICI customer care who entertained me till the Rs.60500 was adjusted to the EMIs from May - Oct. From Nov, they kept the account active and have been billing me under credit card since then without my knowledge. So for the original difference amount of Rs.30500 they've added Rs.38400 as interest, late payment and service tax.

Now they're again offering to settle at Rs.30500 as the total outstanding is showing as Rs.68900

I'm told that "If a borrower does not pay the Installment against a loan for 90 days according to RBI guidelines the bank has to declare the Account NPA. and the interest on the amount can not be charged" yet my account was charged interest even after 90days of non payment for 500+ days

What are my legal options?

Thanks and regards,

Srivatsa

Reply Follow

3 Replies

ajay sethi (lawyer) 07 December 2012

is the letter of settlement in writing ? if bank has in writing issued letter accepting a sum of X amount in full an d final settlement and you have made payment it would be binding upon the bank .

iit is necessary to go htrough the correpsondence entertained with the bank to advise further . it is better to resolve issue amicably with the bank

Kumar Doab (FIN) 07 December 2012

Mr. Sethi has given valuable advice. Kindly follow it.

The customer care is unwilling to honor the committement of the bank.

You may escalate to local BM, Nodal Officer/MD/Chairman of the bank, and caution them not to send your name in list of defaulters of the bank, bad customers list of the bank, for inclusion in delinquent customers list affecting your credit rating by CIBIL/Equifax/Experian, { Master Card Negative feedback list}, credit bureaus, collection/recovery agencies, etc and do not affect your credibility and loan taking/worthiness.

RBI has issued guidelines to inform the customer before reporting to include in list of defaulters and supply copy of credit report against nominal charges.

You may ask them to supply you certified copy of your CIBIL report with name of member

{ICICI bank} mentioned in it.

Meet the local BM of the bank and persuade to honor the committement of the bank. Submit minutes of discussion in writing under acknowledgment and build favorable record.

Try to resolve by applying your persuasion, persistence, negotiation, reasoning skills.

If nothing works issue notice { which you can also issue} to local BM, Nodal Officer/MD/Chairman of the bank and declare that you shall be constrained to approach Lawyer/law firm and cost of consultation shall be on bank, and institutions of police, print and electronic media, legal-social-public portals, NGO’s, CC holder associations, consumer forums, consumer help groups, DCDRF, courts of law, Lok Adalat…… etc at their cost and consequences, if the bank does not yield to your demand of…………..{ be specific in raising your demand}, in next say…7 days.

Some of the consumer support groups have been doing good job. You may approach them too.

pehredar@network18online.com

https://www.facebook.com/Pehredar

Credit Card Holders Association of India

https://www.creditcardasson.org/RBI%20guidelines%20on%20credit%20cards.doc

https://ashisha.com/consumer/

www.grahakseva.com/

You can access consumer court decisions involving this bank at :

Confonet

confonet.nic.in/

If the bank resorts to coercive calls by agents you may record the calls and lodge a complaint to bank citing phone numbers/police under proper acknowledgment.

Honorable Supreme Court has thrashed this bank. The judgment is enclosed.

Attached File : 153180893 9 9 judgment on credit card 2.pdf, 153180893 9 master circular on credit card operations of banks.pdf, 153180893 rbi circular bank to obtain consent for sharing data with cibil.pdf downloaded: 311 times