Doubt: Loan Recovery

POSTED BY Shalini ON October 16, 2012 8:28 pm COMMENTS (2)

I have a housing loan account in Federal bank at floating rate. I am currently abroad so for the payment of emi I have kept enough balance for the deduction of EMI till December 2012.
But recently they have made a deduction stating ‘Loan Recovery’ for an amount of Rs 65,000 without informing me which has really disturbed my whole budget planning.
My father visited the bank for explanation & they told him that RBI increased the interest 9 months before but the bank didn’t implemented that and now they have implemented but they calculated the arrears from the month when RBI implemented & not from the date when federal bank implemented and they have deducted the amount with interest.
And when asked why they didn’t informed me via phone/address/email about the policy change they didn’t gave a proper response.

Kindly let me know what can I do/ What action I can take/ What are my rights. In order to stop happening the same thing in future.

Waiting for a response.

2 replies on this article “Doubt: Loan Recovery”

  1. I think this is not correct. WHile I am not sure if this was “with retrospective effect” (from the date of implementation) , This just does not seem to be right to me .

    You should ask them a copy of the circular and complain to banking ombudsman on this . But before that just check your agreement if there is any clause under which bank might be safe .

    1. Shalini says:

      Thanks Manish for the reply

      I have raised this to the branch manager and waiting for the reply

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