[Resolved]  Lichfl — Complaint against Lichfl for undue penalty charged in my Hbl

Address:

Lucknow, Uttar Pradesh

Customer Relation Officer
Regional Office
LIC Housing Limited
4/291, Vivek Khand Registered /Speed Post
Gomti Nagar
Lucknow -226 010

Sir,
Sub:-
Additional /Penal interest charged in my Loan A/C No. [protected]
Misbehavior by your official
Information under R T I Act’2005
I have availed housing loan from your institution in April’2006 and since then have been maintaining my loan accounts (Numbers [protected] for Rs.2, 00, 000/- & [protected] for Rs.8, 00, 000/-) in most regular manner through ECS mandate and appreciably there has never been single default due to fault of mine.
Notwithstanding sound track record of my loan account since beginning, I have been put to harassment, humiliation & financial loss due to lukewarm attitude and un-professionalism on the part of your office. Details are narrated hereunder for your kind perusal:-
In August’2012, my ECS Debit authority was returned by Payee Bank in my Loan Account Number [protected] due to insufficient balance in account, even though my account was having sufficient balance (Statement Enclosed). After over 14 months, in the last of Sept.’2013, recovery agent was deputed to my place and it came to my notice that penal interest is being imposed every month towards default of said & single installment and same has amounted to over Rs. 4000/-. Earlier I was never intimated in any manner what so ever regarding charging of penal interest being repeatedly carried over every month in my loan account.
I immediately approached your Sapru Marg, Lucknow office on 28th Sept’2013 & 29th Sept’2013 to enquire about the additional interest being charged in my loan account. It was informed to me that against the installment of August.’2012 additional interest is being charged every month though following monthly repayments have been regular and same cannot be waived /reversed. I most humbly requested that I have never been informed that Additional Interest is being charged, but, I regret to say that approach and attitude of your concerned official has been most un-professional & disturbing & arrogant to the feelings of borrowers/your client like me and never expected from reputed institution like your’s.
During the course of my persuasion & submission that even in Aug.’2012 my account was having sufficient balance and also submitted Bank Statement to that effect (Copy enclosed) and requested to consider waiver as I was not at fault & was never informed about repeated Additional Interests being charged in my loan account. But unfortunately I was made to get out & insultingly told that Institution is not bound to inform each & every borrower as there are lacs of borrower accounts at their end & nothing will be done in the matter. These things happened in the presence of your Sapru Marg branch official Shri K D Ram & others present there on 29/09/2013 (Sunday). In case you are inclined/opened to any investigation /enquiry in this regard, I am ready to be present before any of your competent authority wherever & whenever required.
As I have no option but to avoid further additional interest from being charged, I deposited the amount as was being demanded and vide instrument no. 412646 deposited cheque for Rs. 25, 122/- towards installment of Aug.’2012 and Sept.’2013 & additional interest for Rs.4, 122/-, reserving my every right for remedial recourse in the matter. Amount of Rs.4, 122/- was charged towards default of Aug.’2012 single installment (Rs. 10, 500/-) covering additional interest of every month, Bank Charges and Recovery Agent charges though I was never at fault as at the cost of repetition, my account was having sufficient balance in my account but I could neither approach my payee banker for remedy nor could adjust /deposit the amount required as your concerned office has miserably failed to inform me about such additional interest being charged regularly every month in my account/at your end, which was your entire internal accounting /mechanism that was happening in my account without any knowledge /notice/warning to me/borrower to adjust/deposit any such default and avoid imposition of additional interest further.
I was never informed by way of Registered Letters /E-mails/Any statement of account/Visit of your Recovery Agent though I paid Rs. 300/- for Sept.’2013 visit through which I came to know regarding the things and are apprehensive that in case it was not brought to my notice, I would have never been able to adjust /repay my loan account as three to four such defaults shall be sufficient to erode my entire monthly EMI without any adjustment towards Principal Amount as there will never be any information/efforts from your office to alert the borrower and situation shall be most happier for your side. For borrowers like me such a scenario would never be better than Sahukars /Mahajans of gone days of our past.
Details of month wise break up of additional interest charged in my said account are as under:-

Date Loan Amount Received Amount Adjusted Additional Interest for Aug.’2012 EMI Remark
0/09/2012 10500.00 Add. Int 161.00
Principal 4744.09
EMI-Int 5394.91
Bank Charge 200.00 Addl Int 161.00
Bank Charge 200.00 Additional Interest and Bank Charges towards failed ECS of Aug.’2012 though there was sufficient balance in my account.
03/10/2012 10500.00 Add. Int 310.00
Principal 4845.71
EMI-Int 5344.29 Addl Int 310.00 Additional Interest Charged towards failed ECS of Aug.’2012 though there was sufficient balance in my account.
02/11/2012 10500.00 Add. Int 322.00
Principal 4884.84
EMI-Int 5293.16 Addl Int 322.00 Additional Interest Charged towards failed ECS of Aug.’2012 though there was sufficient balance in my account.
03/12/2012 10500.00 Add. Int 310.00
Principal 4948.47
EMI-Int 5241.53 Addl Int 310.00 Additional Interest Charged towards failed ECS of Aug.’2012 though there was sufficient balance in my account.
02/01/2013 10500.00 Add. Int 322.00
Principal 4988.62
EMI-Int 5189.38 Addl Int 322.00 Additional Interest Charged towards failed ECS of Aug.’2012 though there was sufficient balance in my account.
02/02/2013 10500.00 Add. Int 321.00
Principal 5042.28
EMI-Int 5136.72 Addl Int 321.00 Additional Interest Charged towards failed ECS of Aug.’2012 though there was sufficient balance in my account.
02/03/2013 10500.00 Add. Int 145.00
Principal 5271.47
EMI-Int 5083.53 Addl Int 145.00 Additional Interest Charged towards failed ECS of Aug.’2012 though there was sufficient balance in my account.
03/04/2013 10500.00 Add. Int 467.00
Principal 5003.18
EMI-Int 5029.82 Addl Int 467.00 Additional Interest Charged towards failed ECS of Aug.’2012 though there was sufficient balance in my account.
03/05/2013 10500.00 Add. Int 310.00
Principal 5214.43
EMI-Int 4975.57 Addl Int 310.00 Additional Interest Charged towards failed ECS of Aug.’2012 though there was sufficient balance in my account.
04/062013 10500.00 Add. Int 322.00
Principal 5257.21
EMI-Int 4920.79 Addl Int 322.00 Additional Interest Charged towards failed ECS of Aug.’2012 though there was sufficientbalance in my account.
02/07/2013 10500.00 Add. Int 310.00
Principal 5324.54
EMI-Int 4865.46 Addl Int 310.00 Additional Interest Charged towards failed ECS of Aug.’2012 though there was sufficient balance in my account.
03/08/2013 10500.00 Add. Int 322.00
Principal 5368.42
EMI-Int 4809.58 Addl Int 322.00 Additional Interest Charged towards failed ECS of Aug.’2012 though there was sufficient balance in my account.
03/09/2013 10500.00 Add. Int 321.00
Principal 5425.85
EMI-Int 4753.15 Addl Int 321.00 Additional Interest Charged towards failed ECS of Aug.’2012 though there was sufficient balance in my account.
28/09/2013 25122.00 Principal 15372.69
EMI-Int 9449.31
Recovery Charge Rs. 300/- Recovery Agent Fee 300.00 Recovery Agent Fee towards failed ECS of Aug.’2012 though there was sufficient balance in my account.

Keeping in view of the above, you are requested to kindly arrange to provide me following information to me under Right to Information Act (For the purpose IPO for Rs.10/- enclosed):-
In respect of additional interest charged on 04/08/2012, 03/09/2012, 03/10/2012, 02/11/2012, 03/12/2012, 02/01/2013, 02/02/2013, 02/03/2013, 03/04/2013, 03/05/2013, 04/06/2013, 02/07/2013, 03/08/2013, 03/09/2013, provide me date wise details of efforts made by your office to intimate me about the additional interest being charged every month in my loan account though EMI was regularly being paid during consecutive months. How come I know about manipulation being done in my account in arbitrary manner and how borrower would be able to take corrective measures if any required as per your books/standards?
What are intimations made on above dates through Registered letters/E-mails/Statement of accounts/Recovery Agent (Charges being payable by borrower for such visits), if so, kindly arrange to provide me date wise details.
Only in Sept.’2013 recovery agent was deputed to my place and informed about such misappropriation in my account. I was made to pay recovery agent charges for Rs.300/-, which I paid vide referred cheque. Why Recovery Agent was deputed only after silently charging Additional Interest for continuous 15 months on single EMI amount even though interest @11.90% was being charged on entire O/S amount as well. Fees of Recovery Agent are always paid by borrower, then why such laxity & lapse on your part?
In case, above intimations about Additional Interest being charged every month were duly made to me, I would have approached payee Banker timely for remedies/compensation in the matter and have protected my interest.
In the interest of 100% transparency of transactions in my both loan accounts ([protected] & [protected]), kindly confirm whether any additional interest /penalty other than above has ever been levied in any manner in my accounts. This information is required for my perusal/ information as NO Monthly/Quarterly/Half Yearly/Yearly statement/E-statement is issued/made available to me. In case any Additional Interest/Penalty is levied for what so ever reason, details should be provided invariably.
Whether any enquiry is felt necessitated by yourgoodself towards misbehavior made with me in your office (Sapru Marg branch) on 29/09/2013 so as to defend the image of your institution?
In meantime I am contemplating takeover of my loan accounts by other financial institution and would be compelled in case justice is not prevailed upon and necessary reversals are not made in my said loan account. Besides, I shall be forced to take necessary legal & corrective measures befitting my interest in the matter.
Looking forward favorable action in the matter,
Your’s sincerely
(Ahmad Salman)
83-A, Nai Basti, Babuganj,
Near I. T. College,
Lucknow Mob. No. [protected] MAIL ID:- [protected]@rediffmail.com


C.C.:-National Housing Bank
Deptt. Of Regulation & Supervision (Complaint Redressal Cell)
4th Floor, Core 5-A,
India Habitat Centre
Lodhi Road
New Delhi -110 003

Sir,

I have been in regular follow up with LIC Housing Finance Limited as for one EMI of Rs. 10, 500/- (Aug.’2012) over Rs. 4000/- has been charged in my account without any efforts /intimation from LIC HFL towards adjustment of that EMI (Aug.’2012) though during all subsequent months, EMIs have been regular and timely. Here, I submit that though there was sufficient balance in my account but LIC HFL failed to intimate me so that I may take up the issue with my banker as well have deposited that EMI. On the other hand LIC HFL kept mum all the times and preferred/continued to charge penal interest every month as above. Only in Sept.’2013 Recovery Agent visited my place and whole episode came to my notice.

I humbly submit whether such practice on the part of LIC HFL is justified and fail to understand whether availing loan from subsidiary of LIC (Govt. Of India Undertaking) has been a crime for which I have been made to suffer in such an unscrupulous manner (charging penal interest every month for one EMI default without any intention of borrower as there was sufficient balance in account, only payee banker was at fault and no intimation was made to the borrower regarding penal interest being charged every month. All subsequent EMIs are paid in my account on due date.)? One can well imagine the horrific situation for the borrowers in case there have been such defaults for more than two or three EMIs. Entire EMI well be eroded and there will be full O/S despite regular EMIs in subsequent months. Moreover, they are regularly charging interest @ 11.90% on my entire O/S balance including that one so called defaulted EMI (Aug.’2012).

No sensible person will like such default and charging of repeated penal interest in his account, in case it is intimated to him properly and with intention to safe guard the interest of the borrower. Here, LIC HFL has not only miserably failed but intentionally kept the borrower in dark.

For default of one EMI of Rs.10, 500/- (for no fault of mine & without any proper intimation) I have been made to pay Penal Interest for Fourteen continuous months, Recovery Agent charges of Rs.300/-, Bank charges of Rs.200/-, which is never in the interest of borrowers and against ethics of banking.





Besides, attitudes of LIC HFL personals have been highly arrogant towards its customers and un-becoming of professionalism. I was insulted in their office on 29/09/2013 which I brought to notice of their higher authorities but nothing has been done as yet.

I most humbly request you good self to kindly look into the matter and please ensure that justice is prevailed upon by way of refund of additional interest charged arbitrarily in my account.

Regards,


(Ahmad Salman)
Mob. [protected]