• Harassment by ICICI bank

Hi,

I'm facing a hard time dealing with ICICI bank. My dad took a loan of 8,61,632.00 Lacs in 2002 from ICICI bank. My dad passed away on 7th January 2019. Total amount paid to the bank so far is 16,39,950.00 Lacs. However, the pending amount still remains 904,963.42 Lacs. And also, the interest rate on this loan is the highest currently at 14.70%, this also peaked to 15.75 % in 2013. The current interest in the market for home loans under pclr is around 9%. Not only this, but there are also some bogus other charges of 1.55 Lacs, which according to my understanding shouldn't be there.

After my father's demise, I've been to various branches of ICICI to understand why there's a gap between market rate and our current rate of interest but had no luck with any of the branches so far.

There many things which went wrong with my case since a long time. 

Firstly, most nationalised bank automatically converted PLR to MCLR in 2010, but I fail to understand why ICICI didn't do it? Are policies different for ICICI?
Secondly, even after recovering almost twice the principle amount from us in this case, why principle still to be recovered stays at ₹7.xx lacs? 
Thirdly, my late father gave a written application requesting ICICI bank to close his salaried account, still till today we are charged with a fine of ₹200 in every month on EMI. why is that even after giving a written application copy of which I have, account wasn't closed and fine is still charged?
Fourthly, why we never received any letters from ICICI regarding latest interest rate?

I'm looking for honest help from experts in this topic.
Asked 3 months ago in Civil Law from Delhi, Delhi

The bank cannot legally recover any amount from the legal heirs of your father as their case would be barred by limitation.

Limitation period to initiate recovery proceedings is 3 years. Since, they did not take any action till date, their case would not be maintainable in court.

 

 

Siddharth Jain
Advocate, New Delhi
4785 Answers
52 Consultations

5.0 on 5.0

You must be receiving detailed statements of accounts it would reflect  interest paid and principal amount repaid each year 

 

2) cross check with bank contention that Rs 7 lakhs is payable 

 

3) bank should not charge fine  after request for closure of account 

Ajay Sethi
Advocate, Mumbai
67030 Answers
4046 Consultations

5.0 on 5.0

This is what icici bank does to its customers. Nothing new. I have dealt with far worse complaints. File a complaint against the bank in the consumer redressal forum in  delhi.

Rahul Mishra
Advocate, Lucknow
4346 Answers
11 Consultations

5.0 on 5.0

The figure you are quoting makes it clear that the bank is resorting to arm twisting methods and calculating which has no legal activity to extract money many time mroe than your father borrowed from t.

There was mistake and laches on your part as well as you chose to keep silence and danced at the tune of the bank.

Now send the bank a legal notice closing the loan account and return the money which it had collected on excess.

If it does not act as er your notice then file a case before the consumer forum wherein you are executed to get many reefs including enough damages and compensation.

Devajyoti Barman
Advocate, Kolkata
17824 Answers
253 Consultations

5.0 on 5.0

You can file police complaint for harassment as well as you can file consumer complaint for deficiency of service

Prashant Nayak
Advocate, Mumbai
12963 Answers
23 Consultations

4.6 on 5.0

Dear Client

  1. The policies of all banks are regulated by RBI hence there cannot be much difference in policies of banks.
  2. if you feel that there is some sort of conspiracy or clerical mistake by bank regarding your home loan balance then you should file a complaint against bank in consumer court.
  3. if your father gave written application for closing the account and still bank is charging fine on EMI then either your haven't gave them instruction for changing the account from which EMI will be deducted or they are charging this just to make profits out of your account.
  4. you should file a petition for unfare trade practice by bank in consumer court.

Mohit Kapoor
Advocate, Rohtak
3599 Answers
1 Consultation

5.0 on 5.0

first of all, you should take a detailed statement from the bank. The bank has the right to levy penal interest but cannot recover double the principal ammount. The bank has been illegally reflecting such a huge amount as unpaid. You may file a complaint before the bank's ombudsman. 

Shivendra Pratap Singh
Advocate, Lucknow
5105 Answers
78 Consultations

4.9 on 5.0

You should continue paying the EMIs to the Bank, else the the bank will initiate recovery proceedings against you.

 

Siddharth Jain
Advocate, New Delhi
4785 Answers
52 Consultations

5.0 on 5.0

You shouldn't pay anything. File a complaint immediately.

Rahul Mishra
Advocate, Lucknow
4346 Answers
11 Consultations

5.0 on 5.0

Pay EMI first and then complain to bank ombudsman 

Ajay Sethi
Advocate, Mumbai
67030 Answers
4046 Consultations

5.0 on 5.0

Yes you can still raise. 

Prashant Nayak
Advocate, Mumbai
12963 Answers
23 Consultations

4.6 on 5.0

You can pay EMI at present.


You have to file the complaint at the office of the ombudsman under whose jurisdiction your bank branch is located.

You can put it down on a plain paper, send an e-mail, or fill the complaint form on the RBI website. There are no charges for filing a complaint. 

Ganesh Kadam
Advocate, Pune
7519 Answers
65 Consultations

4.9 on 5.0

Yes raise your objection before the banking ombudsman as per latest advise to the people immediately.

Koshal Kumar Vatsa
Advocate, Gurgaon
1777 Answers
1 Consultation

5.0 on 5.0

Hi,

You are suggested to raise the issue immediately (ASAP) with the banking ombudsman and if the issues not solved, take the matter to court, else they will do misdeeds on the name of recovering their money. 

Ganesh Singh
Advocate, Delhi
3115 Answers
9 Consultations

4.5 on 5.0

But why are payign father`s debt ? It is mortgage loan. And you have already paid double. Stop payign Emi`s. Is  this loan ever defaulted ?

Yogendra Singh Rajawat
Advocate, Jaipur
13251 Answers
18 Consultations

4.6 on 5.0

You can file this matter in the District Consumer Forum. There are many banks who do the same thing and thus harass the customers. I am dealing with many such matters. Consumer forum might take some time but you will surely get the relief you want

Mohammed Mujeeb
Advocate, Hyderabad
10264 Answers
3 Consultations

4.5 on 5.0

You can file the complaint without paying the EMI but it will be better to clear the EMI and then file the complaint so that you will have upper hand in the case

Mohit Kapoor
Advocate, Rohtak
3599 Answers
1 Consultation

5.0 on 5.0

Dear Sir,

Since the loan was taken way back in 2002 and till today it is pending, therefore the due amount keeps on increasing. These days, usually the banks send emails on registered e-mail id or message on registered phone number regarding change of rate. Also, these private banks can keep a different rate of interest. 

 

Firstly, if the loan was taken from Delhi, I will advise you to go to the Branch head office and meet the ombudsman, categorically explaining the series of events.

 

Secondly, the Bank is bound to close the account on receipt of the written application. You should also bring to the notice of ombudsman the issue regarding the closure of the bank account.

 

Thirdly, you need not pay any more EMI's. It is advisable to pay a visit to the Ombudsman and on failing to get a satisfactory result, you should file a complaint in Consumer Forum. 

 

Hope this answers your query.

 

Best!

 

 

Kajal Bhatia
Advocate, Delhi
22 Answers

Not rated

You have so many questions put down here in this forum and insist on honest reply as if the lawyers here are the bank employees who you think may give you dishonest replies.

Did you put all these questions to the bank  in writing  and sent them by registered post seeking their reply,

if yes, what was their reply, if there was no reply did you send a ;legal notice to them seeking clarification and also return of excess recovered amount?

Or you have not clarified these details from the bank authorities at all?

The bank is supposed to clarify you the details of loan,m its interest and the excess charges recovered from you and the reasons therein.

If they dont clarify you then you have two options i.e., to approach banking ombudsman for remedial action or to approach consumer forum seeking compensation for deficiency in service.

The interest charges by private banks will be on monthly compounded basis on the defaulted repayments.

 

 

 

T Kalaiselvan
Advocate, Vellore
56755 Answers
706 Consultations

5.0 on 5.0

Before approaching the legal forum, just confirm that you fare not at fault in repayment.

Once your loan repayments are updated then you can rightly approach such legal forums to get your grievances redressed properly and legally.

T Kalaiselvan
Advocate, Vellore
56755 Answers
706 Consultations

5.0 on 5.0

  1. As per the information mentioned in the present query, makes it clear that not only your father but now you also has been harassed by the bank.
  2. No, there is no need to first give the EMI and then approach the court of law.
  3. Yes, you should approach the district consumer forum as per the area/ district in which you reside and then should contest the case as there are not one but many fault at the banks end.
  4. Rest, you are free to contact me for detail discussion on the bank faults and the now recourse to the legal remedy and justice.

Sanjay Baniwal
Advocate, South Delhi
4895 Answers
11 Consultations

5.0 on 5.0

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