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Old 30th October 2008, 10:44   #31
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If you have got a copy of the original RC do take a very close look at it. Does it says 'Hypothecated To' or is it "Hire Purchase"? I think there is some fine sublety of law involved here.

I remember when years back I purchased my Caliber the Bajaj Fin guys retained my original RC and one of the keys. However ICICI did not do anything of the sort for my car loan. However the bike was under Hire Purchase whereas the car was merely Hypothecated to the bank.

By the way, those who are talking about ICICI 2-wheeler loan please be aware that ICICI has stopped financing 2-wheelers since last 2-3 months or maybe a little more. They have simply exited that business. Now they only extend car loans under the aegis of Auto Loans.
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Old 30th October 2008, 12:16   #32
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Srijit, i noticed that Doesn't it also mean the the bank doesn't actually need the RC book?

ak916, thanks pal. I'm really hoping that writing to the banking ombudsman would have some positive reply.

I'm planning to close the loan after 6 months anyways. I will probably never take another loan from HDFC. Did it this time only because i had a salary account there. My next loan would be definitely from a nationalised bank.

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Originally Posted by Zappo View Post
If you have got a copy of the original RC do take a very close look at it. Does it says 'Hypothecated To' or is it "Hire Purchase"? I think there is some fine sublety of law involved here.
In the photo copy of my RC it says, "Hypothecation/Hire Purchase/Lease agreement", bank name and branch is given under that. These are not the exact words, but all three terms are present in the RC book and none of them are striked out! I shall post a picture of the photocopy later.

The first page of the customer copy of the loan agreement clearly states" Loan - Cum - Hypothecation Agreement"

Zappo, ICICI website says that two wheeler loans are available through their select branches. When you click on the two wheeler loans link on their website nothing happens. But if you hover the mouse on top of the link you get the message that i posted.

Last edited by Sankar : 30th October 2008 at 12:25.
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Old 30th October 2008, 13:46   #33
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Sankar, I too think that the bank doesnt need the RC book, but that particular branch, is trying to play it safe

Also it is advised to send any communication as a registered letter so that you have proof that you have sent it. It doesnt matter what the content is, you have proof that you sent a letter and they have to produce it.

ps: SBI seems to have stopped bike loans.
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Old 30th October 2008, 15:18   #34
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When I took loan for my Rx100 the financier kept the RC book and a spare key and duly returned them once the loan was paid back in full.

But, for my car I had to hand over only copies of the RC book and insurance documents.

I think there is no harm in the financier keeping the RC book and I'm not sure whether you can do something about it, unless otherwise it's a legally objectionable action.

It's upto the bank to decide their policies and they need not match with policies of other banks or of other regions.

Regards
Rex
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Old 30th October 2008, 15:30   #35
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Sankar.

Please go ahead and talk/write to the bank. And then lets see what happens.
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Old 31st October 2008, 10:32   #36
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kb100, I will speak to the Branch manager on this coming Monday. I gave a request letter to the Sales Manager of Loans, asking him to release my RC book if not asking him to give in writing that they are holding the RC. I gave this on 28th Oct. They said they will send it to me within two days. I thought i will wait till this weekend for the letter before i make the next move.
Should i talk with the HDFC Branch Manager or send him a letter through registered post (with acknowledgment)?
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Old 31st October 2008, 10:52   #37
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Quote:
Originally Posted by Sankar View Post
kb100, I will speak to the Branch manager on this coming Monday. I gave a request letter to the Sales Manager of Loans, asking him to release my RC book if not asking him to give in writing that they are holding the RC. I gave this on 28th Oct. They said they will send it to me within two days. I thought i will wait till this weekend for the letter before i make the next move.
Should i talk with the HDFC Branch Manager or send him a letter through registered post (with acknowledgement)?
Ths SM of loans is rather useless - his only duty is Sales and he rarely has any powers/duties other than that. IN fact if this is a policy of some sort, then this decision will have to be taken at a level even higher then the Branch Manager. (In most private banks Branch Managers do not enjoy the kind of powers that their counterparts in Nationalised banks do! - Poor Glorified Team Leaders!)

What you can do is to give the BM a letter - addressed to the him - clearly stating retention of the original RC does not form any part of the Hypothecation contract signed between you and the Bank, and as such you are hereby formally requesting the handover of the original RC to you in order for you to stay compliant with the State and National Motor Vehicles Act and rules. State that if you do not get this within 7 days of the receipt of this letter you will forced to approach the Banking Ombudsman and other legal sources for redressal. Take this letter in duplicate - get the other copy signed by the Branch Manager WITH the date time and THE SEAL. (Pl ensure you ask him to write his full name under his signature)

Chances are the BM will be very averse to affixing his signature on anything. INSIST on it, else tell him you will also raise this in your complaint to the Ombudsman. Explain to him that all you are wanting him to do is acknowledge receipt of the letter - nothing else.

Let us know how it goes.

Last edited by kb100 : 31st October 2008 at 10:54.
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Old 31st October 2008, 10:57   #38
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Letter through registered post, to the Branch Manager. Wait 30 days. Then send another letter through registered post to Banking Ombudsman.

edit: Just saw what KB said.

Last edited by srijit : 31st October 2008 at 10:59.
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Old 31st October 2008, 11:01   #39
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Quote:
Originally Posted by srijit View Post
Letter through registered post, to the Branch Manager. Wait 30 days. Then send another letter through registered post to Banking Ombudsman.

IMHO - Registered post only if hand delivery does not work. and do not give them more than 7 days to revert - remember they are forcing you to break the law right now!! (You can even tell him this orally)
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Old 31st October 2008, 11:38   #40
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In addition of all the recourse cited by people write letters to Editors of
prominent national news papers and business media and may be to TV programms like CNBC Awaz and others about how bank is forcing you to do illegal act of driving with out RC.
FYI Drivers are supposed to keep original RC and produce to traffic police when demanded , Most of the people carry a photo copy and most of teh traffic police men accept it as well but that is not legal strictly speaking.

In days of economic meltdown any negative publicity will work like charm.

Quote:
Originally Posted by Sankar View Post
kb100, I will speak to the Branch manager on this coming Monday. I gave a request letter to the Sales Manager of Loans, asking him to release my RC book if not asking him to give in writing that they are holding the RC. I gave this on 28th Oct. They said they will send it to me within two days. I thought i will wait till this weekend for the letter before i make the next move.
Should i talk with the HDFC Branch Manager or send him a letter through registered post (with acknowledgment)?
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Old 31st October 2008, 13:52   #41
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Quote:
Originally Posted by kb100 View Post
IMHO - Registered post only if hand delivery does not work. and do not give them more than 7 days to revert - remember they are forcing you to break the law right now!! (You can even tell him this orally)
Suggesting Registered only because you have got proof from the postal office that the document has been delivered. If charges are filed, you can ask them to produce the document sent to them on XXXXX date. Hand delivery will work, but I dont think you can ask them to produce the document you sent them, in court.
7 days is for lawyer method. Before you complain to the Banking Ombudsman, you need to give the branch 30 days to make things right, after they have received your Registered letter.

ps: I am not a lawyer.

Last edited by srijit : 31st October 2008 at 13:53.
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Old 31st October 2008, 14:14   #42
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Thanks for the replies, kb100, Srijit and amitk26. I shall keep this thread updated with developments happening regarding this. Monday/Tuesday is set as the date for the next contact with the Bank.

kb100, the reply was very informative and i shall keep the points in mind during the talk with the BM.

Srijit, if i make a hand delivery i can take a duplicate copy of the letter i am submitting and get it signed by the BM with his name and date as kb100 suggested. That would be proof enough for the content of the letter and the date it was submittied. If that doesn't work then i can send the registered post.

amitk26, yes you are correct. Not having the original RC of the vehicle is an offence and i will definitely raise this point as well.
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Old 31st October 2008, 14:22   #43
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Hello Sankar sir... (it was you who switch frm 160FI to ZMA right??)

1) its ok acc to my experience. I got the DTSi (1st in my town) back in 03. It was loaned from Cholamandalam finance. They retained the RC and gave it back after I pre-closed the loan 2 yrs down the line.

2) Sundaram finance handed over the RC book for both my ALTO (now sold) and (current) Indigo CS - a few weeks after the RC got generated.

3) I have come to understand all 2 wheeler financiers 'WITHHOLD' the RC due to the 'HIGH' default rate of that segment. Its not the case with 4 wheeler segment (it seems).

So please try your luck, if not - Chill, you are in safe hands. Just take a word from the manager on where the docs will be safeguarded. It is usually in the regional HQ of that state. I remember ICICI sending all to its (Mumbai) HQ.

OT still.... My Home Loan docs from LIC HFL are withheld in Coimbatore office - Regional HQ for TN.
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Old 31st October 2008, 14:54   #44
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Quote:
Originally Posted by Sankar View Post
Srijit, if i make a hand delivery i can take a duplicate copy of the letter i am submitting and get it signed by the BM with his name and date as kb100 suggested. That would be proof enough for the content of the letter and the date it was submittied. If that doesn't work then i can send the registered post.
Yes, that is a good idea. But, I somehow doubt that the BM will put his name on the letter.

Quote:
Originally Posted by svsantosh View Post
1) its ok acc to my experience. I got the DTSi (1st in my town) back in 03. It was loaned from Cholamandalam finance. They retained the RC and gave it back after I pre-closed the loan 2 yrs down the line.
Actually, It is NOT OK. See Sankar's quote below. Other than RTO and the Police (I think), no other organization has the authority to keep your RC book.
Quote:
Originally Posted by Sankar View Post
amitk26, yes you are correct. Not having the original RC of the vehicle is an offence and i will definitely raise this point as well.

Quote:
Originally Posted by svsantosh View Post
So please try your luck, if not - Chill, you are in safe hands. Just take a word from the manager on where the docs will be safeguarded. It is usually in the regional HQ of that state. I remember ICICI sending all to its (Mumbai) HQ.

OT still.... My Home Loan docs from LIC HFL are withheld in Coimbatore office - Regional HQ for TN.
OT: Your home has no chance of being stopped on the highway by a policeman.
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Old 4th November 2008, 14:16   #45
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Sankar - Any updates?
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