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Old 5th December 2007, 14:21   #16
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rkg, I do not want to put my bit in an already raging inferno. But there is another angle to it as well.

If you remember, a few days back I was asking about how not to pay Pre EMI (on another thread). Well, since then I discovered that besides HDFC even ICICI lets you to pay EMI from day one (instead of Pre EMI). However there scheme works a little different from HDFCs. They will disburse the amount as per the builder's completion of each stage. However they will charge you the EMI on the entire amount (final disbursal amount). So what happens to the extra interest that you are paying from day one? Well, they say that once they have disbursed the full amount, they will deduct the extra interest paid from the principle left. So effectively after the final disbursal your principle amount goes down dramatically (longer it takes to disburse, the higher the principle deduction).

Now in your friend's case it looks like he opted for full disbursal so that he pays EMI from day one (I remember you said so on the other thread). Now banks many a times do hold back a part of the payment when the building is not 100% complete. Which is logical if you think about it because their amount is secured against that building. IMO, in this case also something similar happened. Only that some nincompoop whom your friend talked to now could not apply his logic and realize why it was held back when your friend asked for full disbursal and doled out the crap about the cheque being not presented by the builder.

I believe your friend is actually going to gain bigtime now. Ask him to talk to some seniors and they will promptly figure it out. He will gain now because all of a sudden all the extra interest he has paid for the last 2.5 years will be deducted from his principle due. I suspect his principle will actually go down by a good few lakhs. Its actually something to cheer about mate. So be happy and ask your friend to talk to the senior position holders in the bank.

Even if it was actually a mistake (that is they did not hold it back intentionally) they will just have to treat the extra interest as what they do for the tranche EMIs (the EMI from day one thing). Remember, tranche EMIs is something banks never tell their client's about as they loose the chance to earn the interest money. Both HDFC and ICICI fellars have told me so. They tell you only if you are already aware of it and specifically ask for it (I did).

Last edited by Zappo : 5th December 2007 at 14:24.
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Old 1st January 2008, 12:50   #17
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My friend contacted ICICI in this issue. he was told that they have issued the check to L&T.

If L &T has not encashed it. so it is not their fault. they will issue another check if L&T gives an affidavit.

so my friend approaches L&T . L&T refuses to give any affidavit stating they have never received any such check from ICICI.

Now it is back to ICICI

Now ICICI opens the customer file. the check is very much with in the file. ICICI made a check and never dispatched it to L&T. but keeps on charging customer interest on 4 lakhs since last three years. Imagine what kind of banking it is?

now ICICI says they will issue another check as the old one has lapsed. so far they are silent about reverting the interest charged
i have advised my friend to write to banking ombudsmen immediately as he had already paid more than 4lakhs as interest. ( It is not plain interest on 4 lakhs. The EMI of 4 lakhs would have reduced the principle of remaining 16.5 lakhs greatly. if that is counted it will be more than 4 lakhs)
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Old 1st January 2008, 14:31   #18
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ICICI are cheats. A few years back we bought a car from someone known to us. He approached ICICI to pay off the last instalment, and was advised to do so by a draft/pay order, in order to simplify matters. ICICI promised the RTO clearance in a week at most.

Even after getting the draft they took well over 3 months to issue the clearance for the RTO transfer. The local office was showing no outstanding, but the controlling office took its own sweet time. Even this paper came after the previous owner threatened to take them to court!
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Old 1st January 2008, 15:04   #19
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Brilliant. Issue a cheque and never post it. Then charge the customer interest and redemption on it. They should be made to refund the entire amount of interest and redemption with Penal interest. Also, this should be released to the press. Then in addition to the bad publicity,when they get umpteen queries, it will cost them money to respond to them.
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Old 1st January 2008, 21:11   #20
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ICICI has such lousy service yet they are awarded a hell lot of awards... now that talks a lot about the selection process and the actual award itself. Seems like they are not based on ground truths!!!
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Old 1st January 2008, 21:51   #21
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Agreed. Awards definitely have more than what meets the eye.
UNLESS
Others are worse, but are able to keep things under wraps better.
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Old 6th February 2008, 19:24   #22
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So any update on this now?

I am amazed to see the kind of support we get here. I suddenly realized that I've become wiser on a lot of financial matters after being here...
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Old 6th February 2008, 20:57   #23
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Quote:
Originally Posted by rkg View Post
Now ICICI opens the customer file. the check is very much with in the file. ICICI made a check and never dispatched it to L&T. but keeps on charging customer interest on 4 lakhs since last three years. Imagine what kind of banking it is?
Definetly a case that should be taken up with RBI.
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Old 6th February 2008, 22:15   #24
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ICICI has asked my friend to give them a letter requesting for payment of remaining 4 lakhs which he refused, stating that it is thier fault.

Guess why ICICI wants such letter?

so finally ICICI issues the 4 lakh check to L& T. on the issue of excess interest their response is " our senior officer ( with out name pun intended) is looking in to it"

i advised him towrite to ombudsmen but sofar he has not done so. hoping against hope ICICI will do the needful. Lets prey that his hope is fulfilled.
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Old 7th February 2008, 00:15   #25
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I am going through a similar situation with ICICI since January 2008. We applied for a home loan from them in November 2007. All the processing, documentation etc were completed by 5th december. The sub-registrar stuff was supposed to happen on 6th December, therefore ICICI issued the cheque few days before 6th. Somehow owner had some issues and the registration was postponed for 2nd week of February 2008 (which is now only 1 week left). Now what happens to the cheque ?

We requested the bank guys to cancel it, so that it can be reissued for 2nd week of february 2008. Pre EMI amount of over Rs.5000 was already deducted from the savings account in december itself. They explained the things in such a way, we somehow felt its better to start EMI from January itself (without cancelling the cheque but holding them with the bank), although the fund is not disbursed (not a single rupee). Now the EMI of January and February will be taken as payments before the disbursal of the actual fund. I requested the bank to consider these payments as part of the principle amount, not as interest, since the money is not yet taken.

Surprisingly, here comes the similarity of my case with the above posted issue. No fund is disbursed till today, but ICICI records show money is already given to us. Infact cheque is still with the sales team. We are paying interest for the total amount. I understand home loan EMIs of 20 years and above will have approximately 90% interest and 10% principal amount ratio for almost 10 years.

Is there anything we can do about it ? Hope someone can throw some light on this too.

Last edited by shajufx : 7th February 2008 at 00:17.
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