Bank Borrowers Grievances: 2010

DETAILS OF MATTER

AGAINST INDIAN OVERSEAS BANK, MAHIM BRANCH

1. They claim the interest is system generated therefore there cannot be any mistake in the amount charged.

(A) Enclosed the copy of letter issued to me by the Bank duly notarized for your records.

(B) Enclosed the copy of following Credit Notes duly notarized for your records. And all these refer to the period from August 2005 to January 2009.

(1) Account no 1214- Credit forRs 85,895/- If you notice they claim at many places that the Rate of Interest Charged is same as it should be charged but even then the amount is different which is impossible because the computer is calculating the interest amount so if the input of interest rate is same, then how can the computer calculate different amounts at different times. Moreover how can a Bank charge more rate of Interest and that to between 2 to 3 %.

(2) Account no 1215- Credit for Rs 148,431/- how can Bank charge more rate of Interest and that to between 1 to 2 %.

(3) Account no 27500008- Credit for Rs 35,000/- how can Bank charge more rate of Interest and that to between 1 to 2 %.

(4) Account no 270500007 Credit for Rs 278,066/- how can Bank charge more rate of Interest and that to between 2 to 3 %.

2. How can a Bank change terms immediately, terms of Sanction Letter, and on discussing the matter the bank says that “SANCTION 30.04.2005-THE MARGIN ON SUNDRY DEBTORS IS 50% AS PER LAID DOWN GUIDELINES OF THE BANK, THE SAME WASN’T CHANGED FOR YOU AND WE ALSO WISH TO REMIND YOU THAT YOU HAVE ACCEPTED THE TERMS AND CONDITIONS OF THE SANCTION”

(A) Enclosed copy of Letter claiming above dated 21.01.2009, deliberately sent to wrong address to harass the company, duly notarized and denying that the margin of 50% was agreed upon by me. To prove my claim that the Bank has approved Margin of 25% to me, I enclose copy of Sanction Letter dated 30.04.2005 for your records.

(B) The Loan was disbursed in three installments and the last payment in the account was on ….. To support this claim, I enclose the Loan Account statement.

(C) Since no more disbursement was required and I had received all the Machines, The Bank reduced the Loan amount, to which I had no problem, as I had received all the Machinery. But to my surprise they increased the Margin from 25% to 50%. To support this enclose the Sanction Letter dated 30.11.2005.

(D) I was forced to accept the new Sanction Letter as All the Machines had already arrived in my premises and I had no choice left.

I have noticed that the Interest Calculation System being used by the Bank is designed to cheat the customers

The most important point to note is that in no case the interest charged was less than the disbursement rate of interest. This cannot be A COINCIDENCE; it is surely way more than that.

A nationalized bank has to be covered under the following

1. Indian Contract Act.

2. Indian Penal Code.

3. Law of Torts.

Bank's Lethargic reply to the questions asked including OVER INTEREST CHARGED

Above is the banks reply to all the questions asked by us. You can clearly see that the bank has replied in a lethargic manner simply denying every question asked by us without EVEN looking into the matter.

All the points in the above letter are baseless but closely look at point 6 where the bank is discarding our question of the excess interest charged by the bank saying that interest is Systems generated.

After many requests to the bank, the officials obliged us by checking the interest charged and found out that we were over charged several times.

ALL CREDIT NOTES ATTACHED SHOW THAT THE BANK ADMIT THAT THEY CHARGED EXCESS INTEREST.

You can clearly see that the bank officials have not even cross checked the questions asked to them. If they would have checked the interest charged they would have realized that excess interest has been charged. THE BANK STILL CLAIMS THAT IT WORKS FOR ITS CLIENTS.

If interest is system generated and there is a problem then EACH AND EVERY CUSTOMER OF THE BANK IS BEING CHEATED BY THE BANK.

THE BALANCE SHEET OF THIS PUBLIC LISTED COMPANY OVER THE LAST 4 YEARS IS INCORRECT AND MUST BE INVESTIGATED TO FIND ACTUAL FIGURES OF THE BANK.

It is the money of the public that runs the bank and this public is being cheated with, the same public is being mistreated by the personnel at the bank and the same public are being made fools of. THIS INJUSTICE BY THE BANK CANNOT GO ON.

"TOGETHER WE CAN AND WE WILL FIGHT THIS INJUSTICE"