[Resolved]  City Union Bank — unethical behaviour

Address: No.31, NGGO Colony, 2nd street, 622001

I have been working as an advocate in chennai high court madurai bench and also in courts in and around the my native district of pudukkottai and other districts for the last 20 years.in these circumstances, my wife (Main applicant) and i (Co-applicant) applied for a housing loan in your bank to purchase a house in pudukkottai. The loan was sanctioned by your bank, after submitting required documents, in loan account no.[protected]. On 22/09/2010 an amount of rs.15, 00, 000/- was sanctioned to us under swayam [protected]@10 scheme as housing loan. During that time the bank officer in charge told that an amount of rs.19, 825/- should be paid for 120 months and that will be enough.in addition to this a base rate interest at 8.50% and 1.50% was levied as interest amount for above said sanctioned loan per year. A time limit of two months were given to pay the loan amount, i. E., from december 2010 under the scheme within completion of every month. I paid the monthly payable dues amount of rs.19, 825/-, rs.19, 900/- in december 2010 and rs.20, 000/- in forth coming months. After paying my dues amount for the past three years after loan sanctioned, on 26.12.2013 a fine arrear adjustment interest was levied till 27.11.2014 without even informing us and your bank received extra penalty, interest etc., from us than the one said initially, which i got to know after checking the bank loan statement. When i came in person to your bank to enquire about the extra interest amount charged in the name of fine interest and arrear interest, i was told that i should pay the due amount within 23rd of every month which was totally contradictory to what was said to us during the sanctioning of the housing loan. After that, with no option at hand i started paying subsequently the due amount of rs.20, 000/- within 23rd of every month through net banking from my indian bank account and sometimes as cash whenever your bank denied net banking transfers.
Accordingly, i have been paying my loan due amount properly with interest for 102 months from december 2010 to may 2019. Having only 18 more months to pay back the loan amount completely i got to know after checking the loan balance statement of our loan from your bank that i have paid rs.20, 000/- more than what you have said for 102 months out of 120 months. I have to pay only rs.19, 825/- per month for the rest 18 months from june 2019 which will amount to rs.3, 56, 580/- in total. But to my shock when i got the loan balance statement on 17.06.2019, it was mentioned that i will have to pay rs.5, 79, 284/- i. E., an extra amount of rs.2, 22, 434/- even after completion of 108 months till 31.05.2019.

Apart from this, when loan was sanctioned to us an interest rate of 8.50%+1.50% added to 10% was decided as the total interest amount. But after that without even informing the interest rate was increased to 11.50% was levied as interest and your bank statement confirms that we have been paying due amount according to this increased interest rate of which we weren’t informed from which date loan interest was increased to 11.50%. Thus we have been put into a great shock and faced huge mental agony due to this.

According to a rbi notification interest rates has been reduced for housing loan for the past 7 years, but, the same wasn’t applied in our case in addition to not adhering to the rbi notification with regard to our housing loan, an additional interest rate of 1.50% was added to already existing 10% interest amount.in addition to this, interest in the name of fine interest and arrear interest were also added that paved a way for your bank to receive extra amount from us than we were supposed to pay. My wife also receives frequent phone calls from your bank saying that gift has been awarded as she is a vip customer, but, no such gift was given so far. Because of this, every single time we just get fooled by your bank.
So, i would ask your bank :

1. To cancel the wrongly calculated interest rate on our housing loan amount.

2. To cancel the fine interest and arrear interest charged extra quoting that due amount should be paid within 23rd of every month, of which we were neither informed nor were we aware of such activities of your bank.

3. The extra interest amount charged and received in contradiction to the loan sanction letter, agreement and rbi rules.

4. To calculate the pending due amount to be paid by me correctly for the rest 18 months in which in the month of june 2019 rs.19, 823/- was credited in the said loan account.

I assure your bank that i will be paying the due amount properly like the way i have paid all these months. I would ask your bank to consider all the above and help us in paying back the actual due amount that i am supposed to pay and also to give us back the house related document in my wife’s name after the completion of our payment.