This is not the banks mistake however they must have disclosed the penalty clause as it was the dotted lines you can move your application to banking ombudsman and in case you are not getting any help from them then you can go to the consumer forum for the justice against the bank car using unfair means and non disclosure the penalty clause
Dispute against bank
We had taken one plot in 2011 in home loan from bank of Baroda,but suddenly after 5 years bank charged us 200000 ₹ penalty and changed our home loan to commercial loan.We were not told all the rules while taking loan.When we asked bank about it they said it was written at the bottom of the document with astrik mark, that we have to begin construction within 3 years. We dont want to pay these charges,it's bank mistake that they didn't say anything in details.Also the letter which they sent was sent to our old address from where we had shifted.The bank didn't had any courtesy to give us a call regarding it .When everything screwed up after that they gave call.Now the amount is standing at 350000.And we really don't want to pay all the charges and commercial rate of interest.We asked bank to waive unnecessary charges,they are not ready for that also.What should I do please advice.Is it advisable to file a case against bank in such situation?
Asked 5 years ago in Property Law
Religion: Hindu
11 Answers
Firslty, when we are entering into an agreement then it is the duty at our end to go through it properly.
Secondly, as if something coming out of it after some time then you may not be able to counter part it.
Thirdly, but, yes still it doesn’t mean that the bank would change the scenario of category of a property.
Fourhtly, they may impose some penalty, but can’t like this at commercial rate. The clause is in arbitary.
Hello
You may approach the banking ombudsman.
If the conditions were mentioned and you have signed then the same becomes legally enforceable, legally it becomes immaterial that they were written with # or * mark.
Still, you may get in touch with a lawyer and approach the banking ombudsman.
Regards
1. File grievance application before the Banking Ombudsman and try your luck.
Keep Smiling .... Hemant Agarwal
contact your lawyer and sent a legal notice to the bank immediately.
Sir since the condition of home loan was mentioned in the agreement it was your duty to read carefully since no construction begin the bank is at liberty to convert said loan into commercial otherwise the people can misuse the rates of home loan for the commercial purposes. The BANK has sent you notice further no new address was updated by you in the bank so even you go for a suit against bank the same shall not stand as there are no merits. As there is no provision in eyes of law to inform you with a call when valid notice is sent.
But even then to negotiate with bank you can send a legal notice to the bank that the terms and clause were not properly mentioned the bank has used malpractice as the said condition was written in small in astrik. Further the grievance can be filed to banking ombudsman.
It is necessary to peruse terms and conditions of Home loan
2) if you had agreed that if construction is not carried out within 3 years Comercial rate of interest woukd be charged bank can charge you commercial rate of interest
3) notice has to be served at address mentioned in loan agreement
My Plot is a residential plot ,its not commercial.Also there is no development in that area ,so no increase of rates. If Bank charges commercial rate of interest means bank is making my property more costly than it actually is. And I really don't want to pay that. So please advice on the same.Like we should pay all the extra charges of the bank and file the suit or we should only pay the penalty amount and wait for the solution to pay the rest. Also I like to know whether the bank will change the rate of interest from commercial to home again.
Asked 5 years ago
1) carry out construction on your plot for residential purposes
2) pay penalty if there is such a clause in loan agreement
Sir the commercial rates of the interest are charged as after taking housing loan no construction there upon was started so meaning there by misuse of the housing loan. So in this case in my view best option shall be settlement with the bank as if you refuse to pay bank can initiate a recovery. Secondly that file a complaint before the banking ombudsman raising grievance that due to difficulties construction was not started but the bank fined with commercial rates,thirdly a writ petition can be filed.
If you have a strong case to fight against this you may issue a legal notice pointing out the error and the decision taken by them is unilateral and not binding on you.
You may take up the matter to the higher authority of the bank including ombudsman, if you dont get any respite from all these sources then you may approach consumer forum against this grievance.
In your legal notice to the bank asking for their explanation that how could they convert the residential proeprty to commercial proeprty and what is the authority do they have for such conversion etc., can be demanded with proper explanation from the bank in the same legal notice.
This would help you have smooth sailing in the consumer forum agaisnt the bank.