PDC or ECS?

woof · 19th September 2007, 14:50

Hi all,

I am buying a car this month, and have taken a loan from UTI (now Axis) Bank. They have given me an option of paying through Post Dated Cheques (PDCs) or Electronic Clearing Service (ECS). Any idea about pros and cons for the both? Which one is better?

LLL · 19th September 2007, 19:53

PDC only.

You have complete control on the # of payments, amount, date of payment. You can stop the payments as well.

In ECS, you may be able to do all this, but will require some forms and visits to the bank. Also you will have to ensure that bank does not continue to take EMIs after the loan is cleared.

nitrous · 19th September 2007, 20:24

PDC!

Its easy to "bounce" cheques if need be.
But, its not in ur hands in the ECS' case

woof · 20th September 2007, 13:10

Thanks!!

I will go for PDCs then!

s0uljah · 24th September 2007, 15:26

The banks are good at hounding you for payments but when it comes to them having to refund excess you have to move the heaven and earth before recovering your money.

HDFC pestered us through August claiming the ECS was rejected. Citibank then informed us that they had never got a request for payment that month from HDFC. Since our Citi account is operated from Mumbai it took a while to dig for the details.

Meanwhile in order not to complicate things my dad decided to issue a cheque for the August EMI and dropped it off at the local HDFC branch. We also told requested them in writing to cancel the ECS and that we would issue PDC's.

Needless to say every day we got calls from multiple people asking for the payment even after the cheque had cleared. They even went to the extent of sending someone home and to the office for "collection."

We were then pleasantly surprised to find that HDFC had sneakily re-presented the ECS for August last week and in doing so got 2 installments for August.

Also the reason all this crap happened was because HDFC forgot to include the loan / account number on the originaly request form to Citi, which meant citi had no idea who to debit/credit.

19th September 2007, 14:50	#1
woof BHPian Join Date: Jul 2007 Location: Delhi Posts: 139 Thanked: 27 Times	PDC or ECS? Hi all, I am buying a car this month, and have taken a loan from UTI (now Axis) Bank. They have given me an option of paying through Post Dated Cheques (PDCs) or Electronic Clearing Service (ECS). Any idea about pros and cons for the both? Which one is better?
	() Thanks

19th September 2007, 19:53	#2
LLL BHPian Join Date: Mar 2005 Location: Delhi Posts: 635 Thanked: 2 Times	PDC only. You have complete control on the # of payments, amount, date of payment. You can stop the payments as well. In ECS, you may be able to do all this, but will require some forms and visits to the bank. Also you will have to ensure that bank does not continue to take EMIs after the loan is cleared.
	() Thanks

19th September 2007, 20:24	#3
nitrous Senior - BHPian Join Date: May 2004 Location: UAE/Lon/Madras Posts: 6,965 Thanked: 325 Times View My Garage	PDC! Its easy to "bounce" cheques if need be. But, its not in ur hands in the ECS' case
	() Thanks

20th September 2007, 13:10	#4
woof BHPian Join Date: Jul 2007 Location: Delhi Posts: 139 Thanked: 27 Times	Thanks!! I will go for PDCs then!
	() Thanks

24th September 2007, 15:26	#5
s0uljah Senior - BHPian Join Date: Feb 2006 Location: BLR Posts: 2,222 Thanked: 26 Times View My Garage	The banks are good at hounding you for payments but when it comes to them having to refund excess you have to move the heaven and earth before recovering your money. HDFC pestered us through August claiming the ECS was rejected. Citibank then informed us that they had never got a request for payment that month from HDFC. Since our Citi account is operated from Mumbai it took a while to dig for the details. Meanwhile in order not to complicate things my dad decided to issue a cheque for the August EMI and dropped it off at the local HDFC branch. We also told requested them in writing to cancel the ECS and that we would issue PDC's. Needless to say every day we got calls from multiple people asking for the payment even after the cheque had cleared. They even went to the extent of sending someone home and to the office for "collection." We were then pleasantly surprised to find that HDFC had sneakily re-presented the ECS for August last week and in doing so got 2 installments for August. Also the reason all this crap happened was because HDFC forgot to include the loan / account number on the originaly request form to Citi, which meant citi had no idea who to debit/credit. Last edited by s0uljah : 24th September 2007 at 15:28.
	() Thanks