[Resolved]  ICICI Bank Home Loan — Overcharging on Pre Payment

Address:

West Delhi, Delhi

3rd September, 2011
Hon’ble Finance Minister
North Block, New Delhi-110001

Subject : 1. ICICI Bank is indulging in unfair trade practices to
Dupe innocent Home Loan Customers/ operating in
self styled fashion without fear of Law

2. ICICI Bank Levied Pre-Payment Penalty on Principle
O/S Rs 1,10,749.00 to the tune of Rs 16,039.05 @ 14.48%

3. Principal O/S Rs 1,05,698.00 was, as per ICICI Bank
record attached, but they hiked it to Rs 1,10,749.00

4. Original Loan was granted by ICICI Home Finance
but to avoid purview under HFC they seems to have falsified records to dupe the Public in India, People already facing heat on account of Interest Hike, inflation, economic slowdown, job losses, Price Hike to name few.

5. The inflation, Price hike, Economic Slowdown takes time to control but this practice is easier to control and will benefit masses and will enhance the image of the Government being pro masses.

Most Respected Hon’ble Finance Minister,

I beg apology for encroaching upon your valuable time, but today I exhausted all channels in HFC & Ministry of Finance, who in turn referred it back to HFC, leveling me back to square one. The facts of the case are penciled down as under;

1. I have availed home Loan from ICICI HOME FINANCE vide Loan account Numbers LBDEL[protected] & LBDEL[protected], offer letter attached in “Appendix 6” page no’s 20 to 23.

2. The ICICI Bank levied pre-payment penalty against Account Number LBDEL[protected] @ 14.48%, on Principal O/S of Rs 1,10,749.00 amounting to Rs 16,039.05, closure letter is enclosed in “Appendix 3” page no. 1.

3. The Principal O/S as per ICICI Bank record is was 1,05,898.00 but raised it to 1,10,749.00, record downloaded from ICICI Bank is attached in “Appendix 3” page no. 4.

4. Had I paid installments stretched over 13 months, I would have ended paying Rs 1,12,882.00, whereas they charged me Rs 1,30,396.31, copy of cheque attached in “Appendix 3”, “Page no. 2”.A clean penalty to the tune of Rs 17514.31 for paying early, besides putting other interest charge etc..

5. The Bank also levied pre-payment penalty on 2nd Loan Account No. LBDEL[protected], Principal O/S 3,66,592.00 @ 2.21%, of Rs 8101.68.

6. Needless to mention but the time value of money principal applies here that “a Rupee today is worth more than a Rupee in the future” Banks should give discounts rather than imposing pre-payment penalty.

7. I represented my case to housing Financial Corporation vide letter Ref. ref. no. NHB/ICICIBANK/HL SETTLEMENT/1 Dated 14th June, 2011, copy enclosed in “Appendix 5” pages 16 to 19. The same was registered vide ack. Letter ref. no. NHB(ND)/Complaint Cell/577/7531/2011/7439 dated 22nd June, 2011, copy attached in “Appendix 5” page no. 15.

8. The same case was returned by NHB vide letter ref. no. NHB(ND)/Complaint Cell/577/11654/2011 dated August 25, 2011, citing jurisdiction issue. The copy of reply is enclosed in “Appendix 5” page 12. It seems that NHB did not go deeply in the documents/ references I made in my letters enclosed in “Appendix 5” pages 12(1) to 13 & 16 to 19.

9. The fact remains that Loan Offer letter was originally issued by ICICI Home Finance, enclosed in “Appendix 6”, pages 20 to 23, subsequently the loan revision letter as well as “Provisional statement for claiming Deductions under Section 80C(2)(xviii) & 24 (b) of the Income tax act, 1961” was also issued by ICICI HOME FINANCE, please refer “Appendix 7” , pages 24 to 26 &“Appendix 8” pages 27 & 28. Please also refer “Appendix 10” pages from 58 to 78, Loan Agreement inked between ICICI HOME FINANCE & us.

10. The above mentioned documents establishes beyond all doubt that HFC was mislead by ICICI Bank and they tried the same to me by writing letter dated July 13, 2011, copy enclosed in “Appendix 5”, page 14. Now let us say even if ICICI Bank is acting as per law by managing readings between lines or using whatever technique then this is not pro-people but pro-Bank. A Google search would reveal how many people are suffering, sucked by Banks and the complaints are falling on deaf ears, becoming part of the web achieves.

11. The same complaint is also lodged with PG Portal vide Ref. No. DEABD/E/2011/01013 dated 21st July, 2011.

12. Even this information was also filed with Competition Commission of India under Section 4(2) of CCI-Abuse of Dominant position by ICICI Bank, vide letter Ref. No. :CCI/ICICIBANK/HL SETTLEMENT/1 Dated 14th June, 2011, Copy enclosed vide “Appendix 4” Pages from 8 to 11, but without response till date. It needs special attention of CCI as it is not affecting individuals but masses running in Millions.

13. Unless stringent action coupled with unusual penalties viz. 100 times or more the amount realized/ extracted is imposed on Banks, they will continue to extract /extort money from people, and affected parties will grow manifold day by day causing resentment among the masses.

14. Hon’ble Finance Minister your intervention at this crucial juncture is sought to benefit masses by restoring the money collected by Banks for the last two or three years with penal interest. It will also boost the image of the government especially at a time when countrymen are bleeding on account of inflation, price hike, interest hike, fuel price hike, to name few. It will be viewed as populist measure in favor of masses/ families suffered, suffering and are suppose to suffer in future in the hands of Lending Institutions/ Banks.

Thanking you for your precious time and looking forward positive action in favor of your own Countryman.

Truly Yours,


Ashwani Kumar
BE(Electronics & telecommunications),MBA(Mktg.)
FIETE,MIE,C.Eng(Chartered Engineer),FIV
10, Surya Kiran Apartments,
D Block, Vikas Puri,
New Delhi-110018
Copy to:
1. Chairman & Managing Director
National Housing Bank
Core 5A, 5th Floor,
India Habitat Centre,
Lodhi Road, New Delhi-110003

2. Hon’ble Minister of Corporate Affairs
MINISTRY OF CORPORATE AFFAIRS
'A' WING, SHASTRI BHAWAN
RAJENDRA PRASAD ROAD,
NEW DELHI - 110 001