Strange problem: Closed the car loan,but bank lost my car key

rajshenoy · 19th March 2012, 14:37

I had this old car loan taken in Corporation bank which finally got closed after 5 years. When i took the loan, Bank had taken the car key(they did not take the RC book) and they said once the loan gets closed, i will get back the key

Last week when i went to close the loan, i got all the documents such as Form 35 and NOC. But they said they do not have any keys, in fact there is no procedure to take the key from the customer.

As it has been 5 years, almost entire bank staff has changed and may be multiple managers as well. When i got the loan sanctioned, It didnt strike me to get some sort of letter saying they have custody of my car key

I have managed my car for 5 years with just one set of key. but then is this usual ? as i did not have any proof that they have my key, i could only request them to please check and let me know in case they find it(no hopes)

I want to know if there are any drawbacks of not having the second car key ?

I know this sounds silly, but i never expected that a PSU bank can misplace a customer loan related artifact.

As my car is already 5 years old, i might keep it for say maximum 1-2 years only. Does having only one key create any problem ?

Car in question is Maruti swift. can i make another key or do i need to change the whole key assembly ?(what will be the cost?)

Since my car key is missing, should I just replace key assembly to be on the safer side to prevent it from getting mis used ?

Any guidance is appreciated

amit_mechengg · 19th March 2012, 14:43

Do the banks still follow this procedure? i have both the keys of my car and i have a loan. The bank dint take any of my keys on any of my cars.

Fillmore · 19th March 2012, 14:45

Same here, I never heard of banks keeping one key.
Why car's ? I have a house loan. But the bank does not have a house key :-D

BANDHAV · 19th March 2012, 14:47

One very obvious drawback I can think of is that you will surely face an issue with the buyer at the time of a sale. As the buyer will be interested in the full set of key and in case of absence of the same he/she might find fishy and could walk away from the sale.

I would suggest to bother the Bank a little more, try righting to higher official. They might be denying you as finding the key could be a hassle for the current staff. It could be very much lying in somewhere in the bank "safe & secure'.

kingofmyworld · 19th March 2012, 14:47

Strange indeed. I've taken a couple of automobile loans in the past but never was my key taken. They just use to have their name on the RC card. Does these rules change from state to state?

Coming to the key, Nothing wrong in having one key. You can still live with it. But is is advised to keep another key handy just in case. Getting a second key done these days is pretty easy. M.A.S.S does it for you for a fairly less price. You have alternatives of getting it done outside too. There is no need to replace the whole unit. Nothing happened in the last 5 years though the old key is lost. And the chances of something happened in the future is very less. I maybe wrong though.

mayankjha1806 · 19th March 2012, 14:53

This is surprising as its been close to a decade that Banks have stopped taking the keys of the car. When i bought my first car, Kotak Mahindra Bank officials wanted me to give them a set of keys which i refused, since then i have taken two car loans and one from a Public Sector Bank and i have not been asked to give one set of keys to them.

Are you sure if they actually took the keys? and if they did there must be some sort of mention in the bank loan documents. Unless there is some proof i don't see this ending in your favor.

On the question of it having some problems, i don't think there would be any. Worse case if you are apprehensive you can get the locks changed and with that you will get new set of keys.

I don't think there would be a problem in selling such a car as its quiet normal to loose one set of keys, there is nothing fishy about that. Although i must add it would be a inconvenience to a buyer that there is only one set of keys.

pganapathy · 19th March 2012, 14:58

From a perspective of safety, you should automatically change the locks. Otherwise, one fine day somebody might find the key and then you have a problem. Better be safe than sorry. Yes, this will cost more than getting one or two spare keys cut, but consider how much more expensive it will be to lose your car.

That said, I think the keys are stuck in some safe place in the bank and nobody has the patience or energy to look for it as they were not there when the key was taken. It is not really ideal for you to write to higher ups to push for this. You should become friendly with the staff in the bank and ask them to look for it. If all they get is an order from high up, they will do a cursory and disinterested search and say it is not to be found. Not worth it.

spookey · 19th March 2012, 15:01

Quote:

Originally Posted by kingofmyworld

Coming to the key, Nothing wrong in having one key. You can still live with it.

Thats risky. If Godforbid your car gets stolen the insurance company will ask for both the original keys , one missing key would give them enough ammo to deny your claim.

Rajesh,
Best option would be to change the whole lock assembly. Costly affair but worth it - the peace of mind.

noopster · 19th March 2012, 15:08

Are you very sure you gave them a set of car keys? It seems strange that any bank in this day and age would ask for that while disbursing a car loan.

In any case it's all water under the bridge now (and thank your stars nobody misused the car keys when they had access to it!) Treat it just as you would if you lost one set of keys. If you can manage on one set (you obviously have managed fine for 5 years) keep going. If it seems too dangerous, change it.

cranky · 19th March 2012, 15:10

I would recommend changing the lock assembly.

I bought a car on a loan in Calcutta in 2001, and even that came with both the keys - so it's been longer than a decade. So did my next one in 2004, in Mumbai.

Having a lock on something with a key 'out there somewhere' is not a very good idea.

GTO · 19th March 2012, 15:10

I don't see any need to change all the locks; if the company that had the second key can't trace it, fat chance anyone else will.

Just get a duplicate key made from M.A.S.S. and you should be all set (for emergency as well as resale).

kingofmyworld · 19th March 2012, 15:10

Quote:

Originally Posted by spookey

Thats risky. If Godforbid your car gets stolen the insurance company will ask for both the original keys , one missing key would give them enough ammo to deny your claim.

As the thread starter said, One of they key was taken by the bank, it should some where be written in the terms and conditions of the loan agreement. So that should be enough to reverse the insurance company rejection.

Rajesh,
It would be a better deal if you can take it in written from the bank that the key has not been returned to you for what so ever reason in case they are unable to find your key. As spookey said, it might be the case that insurance might reject the claim incase a point is not mentioned in the agreement regarding the key.

m_upreti · 19th March 2012, 15:12

Quote:

Originally Posted by rajshenoy

I had this old car loan taken in Corporation bank which finally got closed after 5 years. When i took the loan, Bank had taken the car key(they did not take the RC book) and they said once the loan gets closed, i will get back the key

Any guidance is appreciated

This is really strange, the Bank taking the key there is no such procedure (I am an ex Banker).

Better get the key assembly replaced immediately to ensure no one can misuse the key.

swarooppatil · 19th March 2012, 15:20

Has the bank provided you a written acknowledgement of you handing over the keys? If that is the case you can still push for them to return them. In case they are really lost the acknowledgment would still help you in getting them to bear the cost towards replacement of locks, at least you stand some chance though you can't be assured of that. As for your safety, it's always safer to replace all the locks. Definitely a cost but much less than losing the car.

paragsachania · 19th March 2012, 15:37

Well, this practice of taking one key was prevalent with many Public Sector banks if I can recall.

I had borrowed from State Bank of Patiala in March 2006 for my WagonR and I had to give them one Key till the loan was closed in June 2009.

But in just a few months after I borrowed, they got away with this practice and stopped keeping one of the keys.

19th March 2012, 14:37	#1
rajshenoy Senior - BHPian Join Date: Apr 2006 Location: bangalore Posts: 2,885 Thanked: 2,230 Times View My Garage	Strange problem: Closed the car loan,but bank lost my car key I had this old car loan taken in Corporation bank which finally got closed after 5 years. When i took the loan, Bank had taken the car key(they did not take the RC book) and they said once the loan gets closed, i will get back the key Last week when i went to close the loan, i got all the documents such as Form 35 and NOC. But they said they do not have any keys, in fact there is no procedure to take the key from the customer. As it has been 5 years, almost entire bank staff has changed and may be multiple managers as well. When i got the loan sanctioned, It didnt strike me to get some sort of letter saying they have custody of my car key I have managed my car for 5 years with just one set of key. but then is this usual ? as i did not have any proof that they have my key, i could only request them to please check and let me know in case they find it(no hopes) I want to know if there are any drawbacks of not having the second car key ? I know this sounds silly, but i never expected that a PSU bank can misplace a customer loan related artifact. As my car is already 5 years old, i might keep it for say maximum 1-2 years only. Does having only one key create any problem ? Car in question is Maruti swift. can i make another key or do i need to change the whole key assembly ?(what will be the cost?) Since my car key is missing, should I just replace key assembly to be on the safer side to prevent it from getting mis used ? Any guidance is appreciated
	() Thanks

19th March 2012, 14:43	#2
amit_mechengg Senior - BHPian Join Date: Dec 2007 Location: Pune Posts: 2,488 Thanked: 2,252 Times View My Garage	Re: Strange problem: Closed the car loan,but bank lost my car key Do the banks still follow this procedure? i have both the keys of my car and i have a loan. The bank dint take any of my keys on any of my cars.
	() Thanks

19th March 2012, 14:45	#3
Fillmore BHPian Join Date: Nov 2007 Location: Bangalore Posts: 492 Thanked: 581 Times	Re: Strange problem: Closed the car loan,but bank lost my car key Same here, I never heard of banks keeping one key. Why car's ? I have a house loan. But the bank does not have a house key :-D
	() Thanks

19th March 2012, 14:47	#4
BANDHAV Senior - BHPian Join Date: May 2009 Location: Ghaziabad Posts: 1,401 Thanked: 2,859 Times View My Garage	Re: Strange problem: Closed the car loan,but bank lost my car key One very obvious drawback I can think of is that you will surely face an issue with the buyer at the time of a sale. As the buyer will be interested in the full set of key and in case of absence of the same he/she might find fishy and could walk away from the sale. I would suggest to bother the Bank a little more, try righting to higher official. They might be denying you as finding the key could be a hassle for the current staff. It could be very much lying in somewhere in the bank "safe & secure'.
	() Thanks

19th March 2012, 14:47	#5
kingofmyworld BHPian Join Date: Nov 2009 Location: Hyderabad / pensylvania. Posts: 816 Thanked: 536 Times View My Garage	Re: Strange problem: Closed the car loan,but bank lost my car key Strange indeed. I've taken a couple of automobile loans in the past but never was my key taken. They just use to have their name on the RC card. Does these rules change from state to state? Coming to the key, Nothing wrong in having one key. You can still live with it. But is is advised to keep another key handy just in case. Getting a second key done these days is pretty easy. M.A.S.S does it for you for a fairly less price. You have alternatives of getting it done outside too. There is no need to replace the whole unit. Nothing happened in the last 5 years though the old key is lost. And the chances of something happened in the future is very less. I maybe wrong though.
	() Thanks

19th March 2012, 14:53	#6
mayankjha1806 Senior - BHPian Join Date: Jan 2011 Location: Bangalore Posts: 2,160 Thanked: 978 Times View My Garage	Re: Strange problem: Closed the car loan,but bank lost my car key This is surprising as its been close to a decade that Banks have stopped taking the keys of the car. When i bought my first car, Kotak Mahindra Bank officials wanted me to give them a set of keys which i refused, since then i have taken two car loans and one from a Public Sector Bank and i have not been asked to give one set of keys to them. Are you sure if they actually took the keys? and if they did there must be some sort of mention in the bank loan documents. Unless there is some proof i don't see this ending in your favor. On the question of it having some problems, i don't think there would be any. Worse case if you are apprehensive you can get the locks changed and with that you will get new set of keys. I don't think there would be a problem in selling such a car as its quiet normal to loose one set of keys, there is nothing fishy about that. Although i must add it would be a inconvenience to a buyer that there is only one set of keys.
	() Thanks

19th March 2012, 14:58	#7
pganapathy Senior - BHPian Join Date: Jan 2012 Location: Bangalore,Coorg Posts: 1,088 Thanked: 765 Times	Re: Strange problem: Closed the car loan,but bank lost my car key From a perspective of safety, you should automatically change the locks. Otherwise, one fine day somebody might find the key and then you have a problem. Better be safe than sorry. Yes, this will cost more than getting one or two spare keys cut, but consider how much more expensive it will be to lose your car. That said, I think the keys are stuck in some safe place in the bank and nobody has the patience or energy to look for it as they were not there when the key was taken. It is not really ideal for you to write to higher ups to push for this. You should become friendly with the staff in the bank and ask them to look for it. If all they get is an order from high up, they will do a cursory and disinterested search and say it is not to be found. Not worth it.
	() Thanks

19th March 2012, 15:08	#9
noopster Distinguished - BHPian Join Date: Feb 2010 Location: Pune Posts: 9,238 Thanked: 12,904 Times View My Garage	Re: Strange problem: Closed the car loan,but bank lost my car key Are you very sure you gave them a set of car keys? It seems strange that any bank in this day and age would ask for that while disbursing a car loan. In any case it's all water under the bridge now (and thank your stars nobody misused the car keys when they had access to it!) Treat it just as you would if you lost one set of keys. If you can manage on one set (you obviously have managed fine for 5 years) keep going. If it seems too dangerous, change it.
	() Thanks

19th March 2012, 15:10	#10
cranky BHPian Join Date: Feb 2011 Location: Delhi Posts: 235 Thanked: 133 Times	Re: Strange problem: Closed the car loan,but bank lost my car key I would recommend changing the lock assembly. I bought a car on a loan in Calcutta in 2001, and even that came with both the keys - so it's been longer than a decade. So did my next one in 2004, in Mumbai. Having a lock on something with a key 'out there somewhere' is not a very good idea.
	() Thanks

19th March 2012, 15:10	#11
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,546 Thanked: 300,789 Times View My Garage	Re: Strange problem: Closed the car loan,but bank lost my car key I don't see any need to change all the locks; if the company that had the second key can't trace it, fat chance anyone else will. Just get a duplicate key made from M.A.S.S. and you should be all set (for emergency as well as resale).
	() Thanks

19th March 2012, 15:20	#14
swarooppatil BHPian Join Date: Oct 2008 Location: Mumbai Posts: 83 Thanked: 30 Times	Has the bank provided you a written acknowledgement of you handing over the keys? If that is the case you can still push for them to return them. In case they are really lost the acknowledgment would still help you in getting them to bear the cost towards replacement of locks, at least you stand some chance though you can't be assured of that. As for your safety, it's always safer to replace all the locks. Definitely a cost but much less than losing the car.
	() Thanks

19th March 2012, 15:37	#15
paragsachania Distinguished - BHPian Join Date: Nov 2007 Location: Belur/Bangalore Posts: 7,148 Thanked: 27,140 Times	Re: Strange problem: Closed the car loan,but bank lost my car key Well, this practice of taking one key was prevalent with many Public Sector banks if I can recall. I had borrowed from State Bank of Patiala in March 2006 for my WagonR and I had to give them one Key till the loan was closed in June 2009. But in just a few months after I borrowed, they got away with this practice and stopped keeping one of the keys.
	() Thanks