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State Bank of India's Housing Loan - Anti Customer Policies

 
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  Rajiv Kumar Misra
I, Rajiv Kumar Misra S/O Shri Prem Shanker Misra R/O 89-B, Vatika, Suncity Vistaar, Pilibhit Road, Bareilly (U.P) Contact No. 9837979090, 9027333485, 0581 – 2315531 SBI S/B a/c No. 010418088445, HTL a/c No. 1018121643(1818) closed due to loan taken over by Oriental Bank of Commerce, SRMS, IMS Branch, Bareilly on 16 Dec 2009, since SBI was charging huge rate of interest 12%pa compared to 8.75%pa offered by OBC, submit the following for necessary/ favorable action against the anti customer policies of State Bank of India and not responding to long pending genuine complaints of their customer. Please expedite ……

01. I availed a housing loan of Rs 3 lac for extension of my house under home loan category on 21st July 2004 from State Bank of India, Izzatnagar Branch, Bareilly vide account number 1018121643 at the then prevailing floating interest rate of 8.25% pa

02. In the interregnum I was informed by branch manager personally of another option available of fixed rate of interest @ 9%pa citing the advantages of this option over the previous one casting uncertainty and apprehension of impending increase in floating rate depending upon the then prevailing scenario.

03. Relying upon the advice of branch manager I applied for fixed rate of interest @ 9%pa and thereby floating rate of 8.25% pa was converted into fix rate of interest on 29th Nov 2004.

04. I was charged Rs 8119/- towards fee for said conversion. To which I duly complied with and paid the said fee only to safe guard my interest from the uncertainty and impounding apprehension of increase in the floating interest rate and belief that I will repay the leftover entire loan amount at the newly contracted fixed rate of interest @ 9% pa.
Obviously the newly contracted fix rate of interest of 9% pa was supposed to remain constant until the entire loan was repaid

05. To the utter surprise and dismay when I took a statement of my Housing Loan account from my branch during May 2006 only to discover that the branch has changed the interest rate to 9.5% instead of 9% without any information. I then wrote the matter to Zonal Office (RAMSECCC) Bareilly, thereafter the rate of interest was rectified and brought back to 9%. A letter to this effect was received by me on 30th May 2006 vide there reference No. BYR/ R-1/KKA/ 174.
That is not all; a statement of housing loan account was again taken on 10th Aug 2009. I was shocked to notice that there were frequent changes in the rate of interest.
The change in interest was as under:
On 07th Nov 2008 rate was changed from 9% to 9.25%
On 03rd Feb 2009 rate was changed from 9.25% to 12.75%
On 18th Feb 2009 rate was changed from 12.75% to 12%




06. I received a letter from Zonal Office (RASMECCC) Bareilly on 27 Jan 2009 citing increase in the rate of interest in my case from 9% to 12.75% with immediate effect. Zonal Office Bareilly also mentioned in their letter that either I should accept the new rate of interest @ 12.75% or pay the remaining huge outstanding amount at once (Rs 2, 70, 000/- approx) quit banking with State Bank of India.
This is a blatant breach of contract by State Bank of India in addition with a rider that either I should agree to the new rate of interest or should pay the outstanding amount at once.

07. I than wrote a letter/ complaint to Zonal Office (RASMECCC) Bareilly on 02 Feb 2009 to allow him to revert his decision and to come back on Floating Rate. He was then informed by RASMECCC Bareilly that the bank reserves the right to change and enhance the contracted Fixed rate of interest every after two years and it is only one time option available for customers to change his option from Floating to Fix or vice versa.

Please note Under what banking regulations the SBI possessed the right to arbitrarily change and enhance the rate of interest every after two years and the customers are not given any further option to revert & correct their mistake.
Since I converted from floating (lower) rate of interest 8.25% to Fix (Higher) rate of interest (9%) on the advice of branch manager that to after paying Rs 8119/- as charges for conversion. The Fix rate was supposed to remain constant throughout the remaining loan period. Still the Bank changed and enhanced the rate of interest from 9%pa to 12.75% pa citing the possession of unilateral and arbitrary right to do so. It is nothing but a sheer betrayal of the trust of a loyal customer and a blatant misuse of the alleged discretion that SBI possessed and claimed.

08. That aggrieved by the said arbitrary & unilateral action on the part of State Bank of India I approached almost all levels of SBI, s hierarchy but to no avail.

09. It is intrusting to note that presently no bank is charging the interest rate @ 12% pa on housing loan; instead new customers are being lured through various medium of advertisement to avail home loan @ 8%. Ironically a regular payee & trusted old borrower is being charged @12% pa. Over & above to add to vows of SBI,s Zonal Office Bareilly intimated that I have only one time option for converting from fix to floating or vice versa. Hence all doors are closed.
This again goes on to show the high handedness, arbitrariness and a blatant misuse of alleged discretion that State Bank of India possessed as claimed only to the pains of loyal customers.






10. At last I was advised by Top SBI,s Officials from RASMECCC & LHO Lucknow (Personally) to get the Loan taken over by some other bank & get the benefit of low interest rate offered to new customers, since nothing is in their hand though they wish to do something in favor, but SBI,s policies don’t allow them to do so.


It is now to inform the dignitaries of State Bank of India who are responsible for the business and customer’s relationship that the loan is now taken over by Oriental Bank of India, SRMS, IMS Bhojipura Branch, Bareilly at the interest rate of 8.75% pa.

State Bank of India
Now, Please explain why Mr Rajiv Kumar Misra R/O of 89-B, Vatika, Suncity Vistaar Bareilly an old & loyal/ faithful client of State Bank of India for last > 25 years & still have S/B account with SBI, should not claim following from State Bank of India –

A) Rs. 8119/- Charges paid for conversion from floating to fix rate of interest, There should be no charge when a customer is opting to pay more rate compared to low rate what is offered to him.
B) Rs. 10, 000/- approx Charges levied during the process of taking over the loan by Oriental Bank of Commerce. The takeover was forced & suggested by SBI due to charge of huge interest rate 12.75% as compared to 8.75% presently offered.
C) Rs. 3,00,000/- as compensation for pains, tension, worries, fatigue, sleepless nights caused by arbitrary & unilateral action, blatant misuse of the alleged discretion that SBI possessed and claimed.
Complaint comments 4 Comments     Updated:
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There is case filed in supreme court as to why should the HFC charge closure penalty as there is great emphasis by Govt of India on supporting the home retail business. In fact by paying back the loan the borrower is contributing to reducing bank's liability and elminating any NPA. The monety received so will be again parked by the bank at higher interest rates to other borowers.

It does not befit country's leading bankers to deal such high handedly with customers.
 
Dear Sir/Madam,

I would like to inform you that I am very much interested to get my Housing Loan statement Quaterly through my e-mail account as mentioned above. As this is utmost essential to submit the same where I am working now and also this is required to get the benefit from Income Tax as well therefore, I will be greatful if you help me to resolve the same at earliest.

Pl note my Loan A/c No: 30409292510.

Regards,
Santanu Sen
(91)-9433010441(M)
Kolkata.
 

REFER MY COMLAINT NO.200910011001137 - State Bank of India

I, Rajiv Kumar Misra S/O Shri Prem Shanker Misra R/O 89-B, Vatika, Suncity Vistaar, Pilibhit Road, Bareilly (U.P) Contact No. 9837979090, 9027333485, 0581 – 2315531 SBI S/B a/c No. 010418088445(1818), HTL a/c No. 1018121643(1818) closed due to loan taken over by Oriental Bank of Commerce, SRMS, IMS Branch, Bareilly on 16 Dec 2009, since SBI was charging huge rate of interest 12%pa compared to 8.75%pa offered by OBC, submit the following for necessary/ favorable action against the anti customer policies of State Bank of India and not responding to long pending genuine complaints of their customer. Please expedite ……

01. I availed a housing loan of Rs 3 lac for extension of my house under home loan category on 21st July 2004 from State Bank of India, Izzatnagar Branch, Bareilly vide account number 1018121643(1818) at the then prevailing floating interest rate of 8.25% pa

02. In the interregnum I was informed by branch manager personally of another option available of fixed rate of interest @ 9%pa citing the advantages of this option over the previous one casting uncertainty and apprehension of impending increase in floating rate depending upon the then prevailing scenario.

03. Relying upon the advice of branch manager I applied for fixed rate of interest @ 9%pa and thereby floating rate of 8.25% pa was converted into fix rate of interest on 29th Nov 2004.

04. I was charged Rs 8119/- towards fee for said conversion. To which I duly complied with and paid the said fee only to safe guard my interest from the uncertainty and impounding apprehension of increase in the floating interest rate and belief that I will repay the leftover entire loan amount at the newly contracted fixed rate of interest @ 9% pa.
Obviously the newly contracted fix rate of interest of 9% pa was supposed to remain constant until the entire loan was repaid

05. To the utter surprise and dismay when I took a statement of my Housing Loan account from my branch during May 2006 only to discover that the branch has changed the interest rate to 9.5% instead of 9% without any information. I then wrote the matter to Zonal Office (RAMSECCC) Bareilly, thereafter the rate of interest was rectified and brought back to 9%. A letter to this effect was received by me on 30th May 2006 vide there reference No. BYR/ R-1/KKA/ 174.
That is not all; a statement of housing loan account was again taken on 10th Aug 2009. I was shocked to notice that there were frequent changes in the rate of interest.
The change in interest was as under:
On 07th Nov 2008 rate was changed from 9% to 9.25%
On 03rd Feb 2009 rate was changed from 9.25% to 12.75%
On 18th Feb 2009 rate was changed from 12.75% to 12%
06. I received a letter from Zonal Office (RASMECCC) Bareilly on 27 Jan 2009 citing increase in the rate of interest in my case from 9% to 12.75% with immediate effect. Zonal Office Bareilly also mentioned in their letter that either I should accept the new rate of interest @ 12.75% or pay the remaining huge outstanding amount at once (Rs 2, 70, 000/- approx) quit banking with State Bank of India.
This is a blatant breach of contract by State Bank of India in addition with a rider that either I should agree to the new rate of interest or should pay the outstanding amount at once.
07. I than wrote a letter/ complaint to Zonal Office (RASMECCC) Bareilly on 02 Feb 2009 to allow him to revert his decision and to come back on Floating Rate. He was then informed by RASMECCC Bareilly that the bank reserves the right to change and enhance the contracted Fixed rate of interest every after two years and it is only one time option available for customers to change his option from Floating to Fix or vice versa.
Please note Under what banking regulations the SBI possessed the right to arbitrarily change and enhance the rate of interest every after two years and the customers are not given any further option to revert & correct their mistake.
Since I converted from floating (lower) rate of interest 8.25% to Fix (Higher) rate of interest (9%) on the advice of branch manager that to after paying Rs 8119/- as charges for conversion. The Fix rate was supposed to remain constant throughout the remaining loan period. Still the Bank changed and enhanced the rate of interest from 9%pa to 12.75% pa citing the possession of unilateral and arbitrary right to do so. It is nothing but a sheer betrayal of the trust of a loyal customer and a blatant misuse of the alleged discretion that SBI possessed and claimed.

08. That aggrieved by the said arbitrary & unilateral action on the part of State Bank of India I approached almost all levels of SBI, s hierarchy but to no avail.

09. It is intrusting to note that presently no bank is charging the interest rate @ 12% pa on housing loan; instead new customers are being lured through various medium of advertisement to avail home loan @ 8%. Ironically a regular payee & trusted old borrower is being charged @12% pa. Over & above to add to vows of SBI,s Zonal Office Bareilly intimated that I have only one time option for converting from fix to floating or vice versa. Hence all doors are closed.
This again goes on to show the high handedness, arbitrariness and a blatant misuse of alleged discretion that State Bank of India possessed as claimed only to the pains of loyal customers.
10. At last I was advised by Top SBI,s Officials from RASMECCC & LHO Lucknow (Personally) to get the Loan taken over by some other bank & get the benefit of low interest rate offered to new customers, since nothing is in their hand though they wish to do something in favor, but SBI,s policies don’t allow them to do so.
It is now to inform the dignitaries of State Bank of India who are responsible for the business and customer’s relationship that the loan is now taken over by Oriental Bank of India, SRMS, IMS Bhojipura Branch, Bareilly at the interest rate of 8.75% pa.
State Bank of India, RASMECCC (AGM) called me on 24 Feb 2010 and offered to refund the excess rate charged by SBI (12% from Dec 2009 insteed of 9%) eccepting their mistake. I disagreed to the offer and claimed following to settle the matter.
A) Rs. 8119/- Charges paid for conversion from floating to fix rate of interest + interest, since the services of Fix rate were not provided to me & interest rate was changed frequently against the contract.
B) Rs. 10, 000/- approx Charges levied during the process of taking over the loan by Oriental Bank of Commerce. The takeover was forced & suggested by SBI due to charge of huge interest rate 12.75% as compared to 8.75% presently offered.
C) Difference of interest charged extra from me e.i. 12.75% & 12% insteed of 9% contracted.
D) Rs. 3,00,000/- as compensation for pains, tension, worries, fatigue, sleepless nights caused by arbitrary & unilateral action, blatant misuse of the alleged discretion that SBI possessed and claimed.
 
I am in touch with top SBI's authorities even with Chairman SBI in connection to my complaint with SBI for last 14 months. There is no action taken yet. Every time The Corporate Office Mumbai advices LHO Lucknow to take action & redress the complaint, intern LHO advice to concern branch, who refers the case to Zonal office. Results are NIL. Now on 24th of Feb 2010 SBI's Zonal Office Bareilly called upon me and offered to refund the excess interest rate charged. I refused to & placed my demand to settle the matter.

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    State Bank of India's Housing Loan - Anti Customer Policies