• Cheating by bank

I availed a car loan from a bank. The bank promised an interest rate of 9.25% which was also mentioned on the loan application. When the loan was approved and the loan agreement presented to me for my signature, the interest rate field on the agreement was blank. Only the EMI amount was mentioned. I signed the agreement and dutifully paid the EMI. When the loan was almost paid off, the bank offered a top up loan. Once again, the bank promised me an interest rate of 10.25% for the top up loan which was also mentioned in the loan application. When the loan agreement for the new top up loan was presented to me for my signature, I again noticed that the interest rate field was blank and only the EMI amount was mentioned. This time however, I felt that the EMI was really high and calculated what the EMI should be for an interest rate of 10.25%. I was shocked to realize that the EMI they were trying to charge me without mentioning the interest rate in the loan agreement was almost 15%. So I declined the top up loan. Then I went back to the loan agreement of the original loan and calculated the EMI for the promised original rate of 9.25% and realized that the bank cheated me and charged me an EMI for an interest rate of 14.25%. I paid off the loan and then protested the interest rate demanding that they refund me the excess interest charged to me stating that they never disclosed to me the interest rate in the loan agreement. The bank vigorously denied my allegation but failed to produce any disclosure of the interest rate. 

Incidentally, the same bank offered me a credit card at the same time they offered me the original car loan. For the 5 years I had the car loan with them, I dutifully paid the entire balance on the credit card every month and never missed a payment. After paying off the car loan and when I realized that the bank will not refund me the excess interest they charged me by cheating me on the interest rate, I did not pay the balance on the credit card which equaled the excess interest they charged me. I fully realize that they are 2 different debts. But I did this as a way to obtain justice since both debts are owed to the same bank and I felt that litigating against the bank for cheating me on the interest rate would cost me a lot of time and money to recover my damages from them.

Now the bank is threatening collection action against me and they are also threatening criminal prosecution. 

What is my best course of action?
Asked 4 years ago in Civil Law

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10 Answers

Pay off the credit card dues

2) if you fail to do so Bank would sue you and recover outanding dues with penal intetest

3) close your account withbank

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0

Send a legal notice to this Bank in the instant matter calling upon them to forthwith set off the excess payment levied from you illegally, against your credit card account. Call upon them to adjust the two accounts so that the recoverables which the Bank owes you are adjusted in your credit card account.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

Dear Sir,

You can approach a Civil Court and if the amount is more than Rs. 10 Lakhs you have to approach Debt Relief Tribunal and get injunction order against them in the fashion you like. Your rights definitely protected by Court. For more details call me.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

If the records establish that the bank has committed deficiency in its service, then the remedy is to file a complaint before district consumer forum.

However, the credit card dues has to be paid as they will continue to exert pressure to collect the outstanding.

Rajaganapathy Ganesan
Advocate, Chennai
2085 Answers
8 Consultations

4.9 on 5.0


the bank has all the right to take an action against you.

If you were cheated by the bank at a point of time, then you could not have made out a judgment for yourself by deciding not to pay the other debt. You must have approach the right forum.

Moreover, since you have signed all the documents accepting the conditions therefore at a later stage you can not raise a challenge to the same, you should not have signed a page after noticing that a particular field is blank.

At this stage, you may either pay off the debts or let the bank call you and file a case. they will appoint an arbitrator and will then go for execution, at any stage you may talk to them and settle the amount.

Legally, you do not have a case to fight in relation to the credit card debt.


Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Dear client,

No criminal offense made out, only civil recovery.

Best course is to issue legal notice, demand for recovery of excess paid interest and cheating.

And if u have any document which shows actual interest rate agreed than case of cheating sustainable.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

One cheating is reciprocated by other cheating.

This was your duty to sign paper which you agree or face the music.

I understand that at the time of loan the customer don't concentrate on this and the agents play the tricks by filling the numbers.

The loan and cards are two different things. If you have realised the cheating you would have to complain the banking ambudsman or would have approached to consumer forum but should not have defaulted in card payment.

The default will create problem in your cibil report and you will face problem in future loan requirements the better idea will be to pay the card balance amount through settlement

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

File a complaint with consumer court. You will get refund of your excess amount charged alongwith interest and compensation for mental agony and torture. This is clear case of deficiency in service.

Prashant Nayak
Advocate, Mumbai
27274 Answers
88 Consultations

4.4 on 5.0

The bank cannot initite criminal proceedings for default of loan whither personal or credit card loans.

For loan recovery they have to follow due process of law.

If they indulge into any atrocity you may lodge a criminal complaint against them.

You may drag them to consumer forum seeking justice and relief

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

File a case against the bank in consumer forum and also lodge a fir against them

Subhendu Ghosh
Advocate, Barrackpore
234 Answers

4.0 on 5.0

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