[Resolved]  IDBI Personal Loan — Bank cheats consumer

I’m an existing IDBI bank personal loan customer since Jan 2005.

I’m extremely disappointed with the bank’s service about a simple issue.
Based on my existing loan, I was contacted by Shilpa, tel # 41506250 on Aug 27th and offered another loan, she told me that I had a good payment record and therefore the bank could approve Rs 3 lakh in 3 working days to which I agreed and signed whatever docs the rep requested and provided docs that she requested.
It was later irritating that the rep called me and asked for certain documents which I had already submitted. The chain of e-mails below to Winston Chandru is a proof that I still went ahead and sent.
As the time taken, was over 1 month I called the rep and informed that I do not need the loan anymore and requested to return all the docs that I had submitted and signed to which she agreed and that did not happen.
I later received a call from another rep, Geetha and then Deepa that a loan of 70, 000 was sanctioned and could try to approve a loan of Rs 1 lakh at least and they were instructed by a manager called Vinod. They later asked for some more docs which were already submitted and I did it again. I was also told that a rep would visit my place with the sanction letter which I had to sign and also hand over 6 checks. The rep visited my place but did not have a sanction letter, instead had another form and requested for my signatures and told me that he would visit the next day with the draft as they did not have authorization to deposit the demand draft to my bank a/c and I had to write an authorization letter in case they had to deposit a draft / cheque to my bank a/c. I refused to do so and requested to hand over the draft in person.
I did not receive any drafts or checks for at least 1 week. I was “mentally agonized” by the bank’s pathetic service and called the rep and advised that I did not need the loan at any cost. I later received an SMS from Vinod that a loan of Rs 40, 000 was sanctioned. From 3 lakh the amount dropped to 40, 000. I informed Vinod that I did not need the loan as it took 2.5 months to process a loan and it also brought down my credit rating for no reason, I was forced by Vinod to take the loan for which I refused.

On Oct 6th 2006, without my knowledge a cheque of Rs 41, 094, cheque # 927439 was deposited to my savings a/c and I was never informed by anyone. I called on Oct 7th and was provided a mobile number of Winston Chandru to discuss the issue who took 1 week to provide any info and at last provided a mob # [protected] of a team manager Vinod whom I spoke with and requested him to send a person to collect the amount as I did not want the money. He requested for 1 day’s time to resolve the issue but never got resolved and he stopped receiving my calls. I’ve also called the helpline numbers 26576199 / 299 / 399 /499 but did not receive any help.
I also sent a complaint on the IDBI website and I also spoke at Manogaran’s office (General Manager, IDBI) and explained the situation and I was provided with this e-mail address.
It’s been a “real mentally agonizing period “because of a simple issue from “IDBI BANK”. All I was requesting wass to take back the money which I did not authorize to be credited and which I did'nt need. I’ve also advised my organization as to not to encourage banking with IDBI and our HR would be sharing this experience with other organizations.
After various attempts and requests to take back the amount, I finally gave up as I did not receive any response to either my phone calls or e-mails. The EMI amount was revised from Rs 4025 to Rs 5021.
During the initial stages of processing, I was told that the repayment schedule of the original loan A/C, i.e. the tenure of 48 months (from Feb 05 to Jan 09) will remain as it is. However the EMI amount would be revised based on the additional loan value. The same interest rate of 13% or lesser would be applied and the tenure for the additional loan amount begin from the month that the loan will be processed.

The example given to me was; if I’d availed an additional loan of Rs 1 lakh in a specific month, the EMI amount from the next month would be revised to Rs[protected]+2683).
When the tenure for the original loan is complete, then I’d be paying Rs 2683 towards the additional loan for the remaining months.

Since I did not receive a response from your bank, the amount was lying in my bank account untouched and I was paying the revised EMI without instructing my bank to process any stop payments or return payments.

As the 48 months tenure for the original loan was coming to completion, I visited the IDBI branch in Indiranagar, bangalore on Jan 31st 2009 to enquire about the principal outstanding balance on the additional loan of Rs 41, 094. To my surprise, I was advised that I had a outstanding balance of around Rs 44, 000 as of Jan 09 and when I enquired how, I was told that my original loan account was closed in 2006 as I’d paid off the balance and I’d taken a new loan of Rs 1, 44, 000 at a higher rate of over 15% p.a. This was shocking to me as I did not know how a loan was cancelled and how a new account was created without my knowledge and there was no communication sent to me although it’s been 28 months since this was processed. I received the new loan A/c number only after my visit to the branch.

As of Jan-09, I’ve already re-paid Rs 2, 21, 088/- to the bank for a loan amount of Rs 1, 50, 000 + 41, 094 (unauthorized) and I’ve been asked to pay another Rs 44, 000 to close the account.

The bottom line is that, I was cheated by the IDBI sales department as they did not follow the process that was communicated, they did not provide me a sanction letter, guidance about the application / approval process was not provided, the old loan account was closed and a new loan account with a higher rate of interest was opened without any communication and finally a demand draft for a loan that I did not require was deposited in my bank account in spite of promising me that the loan documents would be returned as I did not want the loan.

As, I’d mentioned in my earlier communication, I was “mentally agonized” and was under medication for sometime as this may have been one of the reasons that led to stress and tension, I was advised rest by my physician and later by the Neurosurgeon in Sri Bhagwan Mahaveer Jain Hospital. They’d also advised me a brain-CT scan if there were no improvements. During this phase, I also missed work.

As per records and as communicated, from the time the unauthorized loan amount was deposited, I’ve paid Rs 27, 888 (Rs 996*28 months), this should leave a balance of Rs 19, 920 (996*20 months, including the interest component).

My sincere request is to provide a fair solution to this big issue as I’ve come across only two responsive people from IDBI. One is you and the other was Mr. Manogaran (GM, IDBI in 2006). The latter could not help me, however had apologized and guided me to contact the IDBI helpdesk e-mail address who never responded.

I hope somebody can help me get rid of this serious tension by either taking back the difference of the unauthorized loan amount or process a foreclosure towards the actual principal outstanding amount. I’d be grateful for your help on this issue and may be I’ll recommend my friends, colleagues, higher authorities in my organization about your products.