Sir the terms loan and credit facility accounts are on the auto renewables since the bank has failed to.do.there job and you have to.pay higher intrest for same neither any notice for same.to.you was given this is clear deficieny on part of bank you can contest the case against the bank.and can demand reversal of higher interest and compensation . A suit.for recovery of same can also be filed though you should peruse it with baking ombudsman .
Bank has not renewed the accounts - Term Loan and Cash Credit and case of renewal of high interest
We had an Term Loan and Cash Credit facility with then SBBJ bank and now SBI bank. Our account was supposed to be renewed in 2016, but due to the negligence of the bank (lazy bank officials and merger of SBBJ and SBI) it was not renewed until September 2017. We had raised the issues to the bank officials many times verbally and also we visited then AGM, CM and Branch Manager several times. We had even submitted several letter to the then AGM, CM requesting them for the account renewal and also the reasons why we were charged Interest rate @ 16.75%. We had just worked on the face value of the bank and had not taken any acknowledgement or sign on the letters submitted to the bank. We were told that by our friend that if the bank does not renew the account on time and to avoid the account getting NPA, system automatically renews the account but charges higher interest rate. We have asked for the reversal of the extra interest rate charged during the period our account was not renewed. After several followups and verbal communications, and seeing no hope from the bank officials,we had written a letter to the banking lokpal and the case has been officially registered with the bank. Now, the bank manager has written to us asking if we have a evidence proof of requesting the bank for the account renewal and has also written that the interest rate were applied based on the internal rating of the customers which is done by the bank. Please suggest what we should do ? and also if it is the reponsibility of the bank or the customer to get the account renewed on time ?? Kindly give your suggestions, accordingly we will also take your professional services. Regards Amit
Asked 7 years ago in Civil Law
7 Answers
Hello,
Being a customer it is your duty to remind the bank to renew your account, in the case in hand do you have intimated the bank officials orally and verbally but there is no written evidence for the same.
However, Bank being the service provider is a responsible for maintaining the account and as such any lag in the services provided amounts to unethical services.
I advise you to take services from some local advocate who may help you in drafting a reply.
Regards
You have to submit application for renewal
2) you need to hav acknowledgement of having submitted application for renewal
3) bank will proceess your application only if given in writing
4) mere verbal request are not sufficient
Dear Client,
If you have a loan running with your bank which gets merged with a new entity, there may be a change in the interest rate for your loan.
The new rates will be linked to the base rate of the bank which takes over your current lender. The bank will inform you much in advance before affecting any change in your loan interest rate.
As far as loan in concern, it will be beneficial to borrowers since SBI's rates are lower.
It`s clear case of deficiency in service, consumer case maintainable .
1. You are expected to apply for the renewal of the CC limit but the bank is supposed to call back the loan if the account was not renewed whcih they have not done.
2. It is requyired that evidence of delivering letter to the Banki or any body is kept to submit as evidence.
3. However, you shopuld now write to the bank detailing the days when you had conversations with Bank Manager and when you had deliverede those letters thoug it is expected that the Bank will refuse to have received those letters.
4. You can file a compolaint case before the Consumer Forum/Commission against deficiency in service and unfair practice of the Bank cxlaiming refund of the extra amount charged by them with interest, damage and cost.
5. If you have incurred loss or damage on account of the bank's failing to renew your said account, you canb file a Damage Suit claiming payment of the said amount ofr loss incurred by you with interest, damage and cost.
Please suggest what we should do ? and also if it is the reponsibility of the bank or the customer to get the account renewed on time ??
Kindly give your suggestions, accordingly we will also take your professional services.
The bank will not respond to the requests made by you in this regard.
Even the lokpal may not be very effective.
The step to be taken in this shall be to approach the consumer forum for getting your grievances redressed.
You may discuss with your advocate and file a consumer case against the bank, let them give their reply to the consumer court which can be challenged.
Please file a case in Consumer Forum for deficiency in service against the bank narrating all the grounds given by you here , you have a strong case.
