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Old 6th November 2008, 20:02   #16
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Dear Ashthedivx,
Just because the Cheques have been returned does not close the loan. I'm sure that there is some oversight by the bank people. However, you have done your good deed by informing them about it so no sweat there. Just keep it with you and let the loan go on smoothly. Remember its their fault not yours; you didn't ask back for it neither did you send any formal request. So no problem there.
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Old 6th November 2008, 20:04   #17
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Originally Posted by SLK View Post
Like in my case I had electronic debit, but they still took a couple of cheques which they never used.
Its illegal but banks do it anyway.

Usually they would ask for undated checks so that they can make a "criminal" case (for check bouncing) against you in case of default.
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Old 7th November 2008, 11:32   #18
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Update: Kotak Representative called up and called the sent check "A MISTAKE" done by dispatch dept. She wanted to have the checks back. But being furious of their ir-responsible and illogical behavior i told her to get in touch with me in next week. As it looked like ball is in my court

Can one get any type of further benefit of the "MISTAKE" ?? I am thinking of getting a apology letter for the same from the branch manager at least. What do you say guys ?

Here, I would like to point out that these are security checks not EMI checks. My EMIs were regularly deducting from bank account through ECS, these were the check handed over to kotak as a security only.
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Old 7th November 2008, 11:52   #19
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Originally Posted by ashthedivx View Post
Here, I would like to point out that these are security checks not EMI checks. My EMIs were regularly deducting from bank account through ECS, these were the check handed over to kotak as a security only.
That is the point. Bank is not supposed to have these checks with them in the first place.

By giving you an apology letter, they will admit involvement in this illegal practice. Loan agreement will usually not have any mention of these checks.
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Old 7th November 2008, 11:57   #20
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Originally Posted by NetfreakBombay View Post
That is the point. Bank is not supposed to have these checks with them in the first place.

By giving you an apology letter, they will admit involvement in this illegal practice. Loan agreement will usually not have any mention of these checks.
Any further suggestion of dragging and let them realize their mistake ??
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Old 7th November 2008, 12:21   #21
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Originally Posted by NetfreakBombay View Post
This is Normal.

1. Bank is not "supposed" to take those checks as per law. These are "guaranty" checks right? Usually they ask for checks without date or sometimes even amount. Plain illegal.
2. These checks are not mode pf payment, that would be ECS. So loan wont be closed unless main system signals outstanding to be zero and ECS will continue.

Probably just a communication gap that you got these checks. But it changes nothing.
I wouldn't go as far as calling them illegal - Cheques & DD/POs are called Negotiable Instruments. ECS is not. Banks usually take a blank cheque so that if you default on ECS payments - they can take legal action against Negotiable Instruments Act. If you read the agreement you sign with the bank/fi you would find a mention of this.
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Old 7th November 2008, 12:28   #22
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Its true that banks have to resort to this illegal practice since its tough to do business legally.

I nailed HDFC while getting my car loan on this. Agreement had no mention at ALL of these cheques. And ultimately they cleared the loan without security cheque.

On top of this, banks would ask for "blank date of issue" for checks. This itself is illegal as per NI act 1881.
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