What options do I have against the bank's penalty?
I took out a home loan from Bank of Baroda in Bangalore, Karnataka in 2016. The bank disbursed the loan amount and I received the property from the builder, along with the original sale deed. After a couple of years, the bank asked me to submit the original sale deed and create a mortgage agreement, threatening a 2% penalty if I failed to comply. Despite my attempts to communicate that I was not in India at the time and would be travelling soon, they did not respond to my requests for guidance on the required procedures. I sent two reminders but still received no response. They have already imposed the 2% penalty, which they are unwilling to reverse. I have offered to close the loan if they reverse the penalty, but they are not responding to my proposal. What options do I have in this situation?
In this situation, check the original loan agreement to confirm if submitting the sale deed and creating a mortgage agreement was a required condition. If it was not stipulated or if the bank failed to communicate this requirement clearly, you may challenge the penalty as an unfair charge. You can file a complaint with the Banking Ombudsman under the Banking Ombudsman Scheme, 2006, managed by the Reserve Bank of India. The Ombudsman addresses customer grievances related to unfair practices, non-response, or excessive charges. The complaint must be filed within one year from the date of your representation to the bank. Since this matter concerns unfair charges and non-responsiveness by the bank, you can file a complaint with the Consumer Disputes Redressal Forum in Karnataka.
Sir, firstly you should review the loan agreement and document all communications with the bank. You can also file a formal complaint to the bank and then you can escalate the matter to the Banking Ombudsman if unresolved. It is advised to consult an expert lawyer who will assist you in navigating the complexities of the matter. For further legal assistance contact us on our helpline number.
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