Hello Forum,
I've a query. These days banks both private and government are charging pre-payment charges on Cash Credit accounts, of 1%-4%, if customer decides to switch from the existing bank to another bank. Reason may be poor services, high interest rates, wrong levy of pe al charges due to bank' s mistakes, higher charges being debited, etc...
My question here is that.
1. Can a bank charge prepayment charges after the expiry of the last accepted sanctioned terms....?
2. Can a bank levy any penal charges for non-renewal of sanctioned terms to a customer even if customer had complied and submitted all papers to the bank well before due date.
3. If a bank levies these penal charges, even by mistake and informs customer to reimburse these charges while renewal of credit facilities and do not reimburse/repay, if renewal doesn't happens...? Can a customer claim these charges from bank afterwards....?
4. How can an Ombudsman help in this case. Rather, the question should be, does a banking ombudsman actually interfere and take any action against a bank in such case.
CAclubindia
