Complaint Detail

Brand Name



Financial Institutions

Date Posted

24 Feb, 2012

Submited By

Chandrasen Mourya, India

Subject of Complaint

Loan Account closure

Complaint details

Me and my father went to close the loan account of ICICI bank on 4th feb & were informed to pay Rs. 6,76,596/- as final settlement amount after which we dont have to pay EMIs or any money. Then we confirmed that we dont have to pay any loan foreclosure charges repeatedly but the ICICI bank assured that since its being a Flaoting ROI, hence no 2% foreclosures are applicable. The EMI is due on 10th of every month as we paid the amount on 4th feb including the EMI upto 4th feb, but later on 14th feb we were informed that we have to pay 2% extra charges for loan closure, which came as shock to us & we ask the bank to revert the money to my account (AXIS bank through which i had paid my Dad Loan as loan is in His name & not my name). But the bank credited Rs 663057 in my Dad SBI account (Which is registered by ICICI bank for their ECS clearnace and not my AXIS bank). Now all this we came to know only when we visited with 14000Rs cash to settle the amount and finally close the laon. ICICI bank informed us as you havnt paid the 2% loan fore closure charges your loan is not closed and emi is deducted and money is send back to your account, but instead they have sent it to my dad account. Atleast someone should have reverted back and asked whether we can deduct the money from the amount you paid or we send the ECS to the account registered with us, so simple and easy.What is wrong with bank how can they deduct the EMI from my bank and refund the money to my dad SBI account. First of all the EMI shall not have being deducted as we have paid the money on 4th and ICICI have informed us about 2% charges after 10th feb i.e. on 14th then how can they deduct the amount. I have given 2 letters to them and they havent replied to that. Please suggest me can i file a FIR for fraud against the bank and send a legal notice for the same as they have never informed at the time of closure of loan about the 2% fore closure charges & niether they told that they would debit the EMI of the present month if they refund the amount. They are really bullying us to do what they want. I am really fed up i have stay in dubai and i have call up them and have to fight for hours, my bill itself has crossed 1000rs and still no result.

Advice from Legal Counsel Team

Dear chadrasen, Concerned bank is not supposed to charge 2% closure charges. Its been a usual practice nowadays to harass a customer if they decide to close their bank account. No you can't file FIR as strictly its not a criminal offence. However you need to send them a legal notice incorporating all the facts and send copy to Reserve Bank of India. In most of the cases RBI take cognizance and also take action against the bank. Regards, Legal Team -------------------------------------------------------------------------------------------------- -------------------------------------------------------------------------------------------------- REPLY TO QUERY # 2:- Dear Chandrasen, Charges for sending a legal notice may vary from Rs. 1000 to Rs. 5000. It depends on lawyer to lawyer. However, keep pursuing the complaint you have filed. Its good to see vigilant citizens like you. All the best.


Thanks a lot for the advice. I have put an online complaint to RBI through Banking Ombudsman scheme 2006. Also can you tell me how much will be the charges for sending a Legal notice to them.
  Posted: 24 Feb, 2012 by Chandrasen Mourya, India
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