ICICI Car loan Cancellation

[MadRash]

Hi everyone,
I have explained my frustrating experience with ICICI bank.
During the 2nd week of April I booked a Dzire VDI and availed a car loan from ICICI. The loan was approved with in 4 working days. Based on the promise of the dealer (they promised me 1.5 months max), I asked ICICI bank to release the loan amount to the dealer and I fully paid for the car. Waited till June 1st week and checked for the booking status. They said it will take another 3 months. Really got shocked and cancelled my booking. My bank agent told me that changing the car is not an issue with the bank.

Then I decided to go for Fabia. Booked a TDI Classic on 3rd June. Also informed ICICI about this. In the mean time the EMI Started. The bank agent advised me to let it go. The agent came and collected one more loan book and few cheques from me and pressed me to go for ICICI Lombard insurance (got 40% discount though). After a week, the agent called and told me he wasn’t able to get the approval so asked me to cancel and re-apply for a loan. (I have to bear the 18% interest for cancellation and processing fee for re-booking). After some discussions, he told me that he will try once more.

Again a week later he told me that he got the approval. But it’s been two weeks since and till now the Skoda dealer haven’t got the cheque from ICICI.

I'm really frustrated by this experience and thinking of cancelling the loan from ICICI.

Is it possible for me to cancel this loan (not pre-closure) without loosing any paise to ICICI?

Facts.
1. Car is not yet delivered
2. One EMI is already paid
3. I don't want the processing fee I paid first

I need your advice.
Regards
Mahesh S

[Mr.Bangalore]

hey mahesh
you are in deep soup..
you can do one thing instead of talking to these agents better approach the manager directly and get it sort it out..

[khan_sultan]

oh my god..!!!! . That's a first for me here Mahesh. Not sure of what the solution could be, but if there is one available, t-bhp is the only place you can get it.

Wishing you the best here..

[Lalvaz]

I'm confused MadRash. You mentioned that you instructed ICICI to release the payment to the Maruti dealer which the bank did. Then you chose to go for the Fabia. How did the transfer of money take place from the Maruti dealer to the Fabia dealer? Did the Maruti dealer refund the money to ICICI, in which case why did you need to pay an EMI already? Also, if you have paid the EMI, then where is the question of being rejected for a loan? Usually, the EMI's start only once the loan is sanctioned and disbursed.

Very confusing indeed. Could you please elaborate on the transfer of funds? Also, as suggested, please take the agent with you and go meet the ICICI manager to sort out the mess. Once all parties are across the table, things usually begin to reach some conclusion.

[liberal]

Originally Posted by MadRash

Hi everyone,
..I booked a Dzire VDI and availed a car loan from ICICI.

.. asked ICICI bank to release the loan amount to the dealer and I fully paid for the car.

...cancelled my booking. My bank agent told me that changing the car is not an issue with the bank.

Then I decided to go for Fabia.

Never heard that a disbursed loan could be transfered!!!!

I believe the only way out is pre-closing the existing loan and applying afresh.

Please check with the bank directly to validate the information provided by agent.

Good Luck

[MadRash]

Mr.Bangalore:
I'm in touch with a manager in ICICI. But no use.
Lalvaz:
Changing a car after availing the loan is not a rare case. But here the amount was paid to the dealer. So the bank has to get the money back from the dealer and then it will pay the other dealer. The money is recovered from Maruti dealer.

ICICI manager told me that the only thing pending as of now (at their end) is that the cheque has to be released. And for the past one week they are giving different reasons. Like "system down", "concerned person is on leave", "mumbai team has to approve it" ....

Regards
Mahesh S

[Lalvaz]

Originally Posted by MadRash

Mr.Bangalore:
I'm in touch with a manager in ICICI. But no use.
Lalvaz:
Changing a car after availing the loan is not a rare case. But here the amount was paid to the dealer. So the bank has to get the money back from the dealer and then it will pay the other dealer. The money is recovered from Maruti dealer.

ICICI manager told me that the only thing pending as of now (at their end) is that the cheque has to be released. And for the past one week they are giving different reasons. Like "system down", "concerned person is on leave", "mumbai team has to approve it" ....

Regards
Mahesh S

So if ICICI has not yet cleared the loan and you want to cancel it, just tell the ICICI manager that you changed your mind and dont want the loan anymore. They have already recovered the money from the maruti dealer, so they have nothing to lose. And you dont even want the processing charges or first EMI back, so should be a piece of cake to cancel the said loan. Also instruct the Fabia dealer to not accept the cheque from ICICI just incase they give it later. Also, make sure that the car is registered in your name, so ICICI does not have any hypothetication in their favour. That should suffice. Incase you've issued PDC's, ask ICICI to return it, or inform your bank to stop payment on said cheques. End of story.

[CorsaLove]

Mahesh -I have PMed you a way to try.

[diffsoft]

Originally Posted by MadRash

Hi everyone,
I'm really frustrated by this experience and thinking of cancelling the loan from ICICI.

Is it possible for me to cancel this loan (not pre-closure) without loosing any paise to ICICI?

Facts.
1. Car is not yet delivered
2. One EMI is already paid
3. I don't want the processing fee I paid first

Mahesh:

Sad to hear your ordeal - applyling kitchen logic here, since you have already paid the first EMI, you cannot cancel the loan - you will have to foreclose it, but that would have huge charges.

The real money maker seems to be the Maruti dealer who has go the money from ICICI without delivering the car to you. Why don't you and ICICI ( I am sure ICICI has a relationship with that dealer) get that amount from the dealer and transfer it to the Skoda dealer?

Another option is to transfer the loan: Ask ICICI if they can transfer the loan to another person from the same Maruti dealer and give back your EMI - in effect just the person to whom the loan is disbursed is changed from you to someone else with the same credit profile - since you have paid the first EMI ICICI can transfer the outstanding principal to the other person and ask the other person to handover the EMI to you.

On insurance, since you have not been given the car you have all the right to claim back your insurance (with interest)

If none of this works, go to the ICICI Bank web-site and post a complaint.

Hope things get sorted out soon.

Cheers,

[MadRash]

Thank you so much all of you. Today evening the ICICI manager called and informed me that today is their month end and they will issue the cheque to the skoda dealer by today or tomorrow. I will wait for a day. Once again thank you for all your help.

Regards
Mahesh S

[married2speed]

Man. Sorry to hear such a sad story. Buying a car is supposed to be happy thing and not a sad one, like you've encountered. It really is an unfortunate situation that you in. If I were you, this is what I would do
1. Get in touch with a good lawyer, explain him things and understand what can be really done. What you'll here would be only indicative and speculative along with some facts. However, you need more than that.
Check if the following is possible:

a) Suing the Maruti dealer for going back on his words. (Did he give you a delivery date in writing)
Many of you may suggest otherwise, considering that the way the judiciary works, it's not worth it etc etc, something which I totally agree on but look at it on the other side, you're paying for a car which you don't even have? What are you the paying the EMI for? Even if you were to stop the cheque payment, you think ICICI will not send you a legal notice? Just think about things carefully here rather than just loosing your presence of mind. It's better to atleast have a legal opinion on the matter.

If i were you, I Would have cancelled the loan from ICICI itself rather than booking a skoda. God has funny ways of warning us. Who knows what good are you goin to get by not aquiring the Dzire. Stupid as it may sound, these sorta things do happen, and I personally do belive in it. If i were you, I would have waited for a month before booking the skoda. If not a month, then atleast a couple of days to get over the shock of not having the Dream car that i wanted, the Dzire. Anyways.
Since this is not applicable anymore, what I would do is, speak to some senior of the Bank and tell them that you're not interested in ICICI banks services anymore because of the harrasement caused. The unnecessary delay in them sending the cheque over to the skoda dealer has left you with you a bitter taste and you would like to settle this matter amicably. You are willing to forgo the processing charge and you would like to have the EMI's returned to you.
I'm sure that in order to aquire the "sale" they would offer you something better than what the current deal is, if you like it, go for it but like i said, god has funny ways, I would really consider closing this deal and starting afresh.
Last but certainly not the least, try to resolve this matter with a cool head bro as these things do tend to get "argumentative" which will not benefit you. Get your money back and walk out, although ICICI is not really at fault here.
Cheers!
M2S
PS:IF ICICI does send over the cheque to the skoda dealer, do post your ownership review of the fabia

[MadRash]

Today evening after a lot of escalations, the bank delivered the loan cheque to the Skoda dealer. Hence the problems solved.

Its was such a wonderful feeling, to know that there are people out there to lend you a helping hand. Thank you so much.

Regards
Mahesh S