Hi, I went for a balance transfer to HDFC Bank of my personal loan with Bajaj and Citibank. Citibank had a minimum lock in period of 12 EMI's and before that they cannot close the loan. I had completed 6 EMI's and HDFC confirmed me that they can get the loan closed even with 6 EMI's and disbursed the loan amount accordingly. Later on they issued me two Demand drafts for closure of loans and asked me only to close the loan accounts. I left my office and had to struggle to close the loans with lot of effort. However, only Bajaj closed the loan and CITI is not accepting it since they had clearly mentioned that there is a 12 EMI lock in period. I have reached out to HDFC bank multiple times but they are not responding now as they have just given me the DD of 5 Lakhs and the EMI for both HDFC and CITI is running and I cant pay both the EMI's. I almost contacted them for a month to either reverse the amount or pay that amount to my account but no one is doing anything. I have now intentionally missed the first EMI of HDFC and now getting calls from recovery agents. I have clearly told them that once you guys resolve the issue then only I will pay the EMI. Everyday I am getting harassed by calls and they are telling my Cibil score will be impacted. I have given them 4 blank cheques for ECS purpose out of which they have already used one which is bounced. Please advise on what to do next on this issue. Thanks Paramveer Singh
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Dear Paramveer Singh
immediately issue a legal notice to them and if they are not settled your account within notice period then you may file a complaint against them before police, court, banking Ombudsmen or before Consumer Court and claim compensation too for harassment.
If the recovery agents create any nuisance or used abusive language then you may file a criminal complaint against them before police.
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1) if cheque is dishonoured on presentation bank will file complaint under section 138 of NI act
2) bank will also file summary suit to recover its dues
3) you ought to have read terms of your contract with Citibank before requesting for balance transfer of your loan with HDFC
4) Citibank would be justified in refusing loan closure as per the terms of contract
5) if you are harassed by recovery agent file police complaint of criminal intimidation under section 506 of IPC against them
6) reach an out of court settlement with HDFC
You draft a legal notice either by yourself or through your lawyer narrating the entire events including the return of the DD and instruct them to receive back the DD they had given earlier.
This notice should be sent by registered post.
If there is no response to this notice, you may drag them to the consumer forum for deficiency of service and seek relief and remedy to the issue.
The information that was provided to me before disbursement of the loan amount was different as compared after the disbursement. I had clearly informed them about the CITI closure policy and provided them with the welcome letter of CITI where in this rule was mentioned. But still, they assured me that it can be done after 6 EMI's. Also, I was told that the blank cheques were only to be used for ECS purpose but they are presenting it to the bank for clearance and have now used two of my cheques. As of now, no one from the HDFC bank team picks up the call to resolve the issue and I am just getting calls from recovery agents stating that my Cibil score will be impacted. I have told them that until and unless this issue is not resolved I am not going to pay the EMI. I myself is working in a Multinational bank for the past 5 years and never faced such kind of issues as I have never missed any of my EMI in previous loans and credit card. I am worried about my cibil score would take a hit after this and looking to close this as soon as possible. Going forward, I will make sure that I wont be entering into any kind of relationship with HDFC as they are cheats and have not even provided me the welcome letter for this loan as well.
complain to the Managing Director of HDFC against the recovery agents
2) mention how the HDFC staff cheated you and assured you that balance transfer is possible after 6 EMI
3) complain to RBI against Citibank policy of minimum lock in period of 12 months for personal loan
If you are worried about the cibil effect, then you may have to jump personally into the arena.
You being a bank employee should be well versed with the procedures and formalities in this regard.
Now you can issue a stop payment for the cheques already there with them and may talk to them about refunding the loan amount already received by you.
You cannot sit idle saying that the team is no picking you call.
You can personally visit the office and talk the head or the manager and sort out the problems while they are still under control.
Dont make simple things complicated or develop into a massive problem.