Team-BHP (https://www.team-bhp.com/forum/)

-   Indian Car Loans & Insurance (https://www.team-bhp.com/forum/indian-car-loans-insurance/)

-   -   Car loan checks returned without closing loan !! (https://www.team-bhp.com/forum/indian-car-loans-insurance/48538-car-loan-checks-returned-without-closing-loan.html)

Last week i received a packet from KOTAK Mahindra Auto loan dept carrying 5 checks given at the time of picking up the car loan. I haven't closed my loan any regular EMIs are going to the Bank.

To my utter amusement it's been a week and no one has contacted me so far for the checks stating concern for returning the checks. At last i called up Kotak mahindra and inquired them about the purpose of sending checks back, but even they were suprised to hear such incident. They have assured for the call back..

A collegue bluntely told me to immidetely stop EMIs and claim the "Loan Paid" certificate and go for HP removal from RC :uncontrol

Any idea how should i proceed or what should i do with these checks ??

It would be good idea to have a written communication with them regarding this, I guess.

Will it benefit anyhow ??

now THAT sure is a first :D

Strange !! A wierd thing happened with one of my car loans also. I did not have any money in the account where those checks were supposed to come out from.

I forgot and my accountant reminded me 3 months later that there is no money. I quickly deposited 30k for the remainder amount. This month on the 1st the 7.5k came out but nothing happened to the previous 3 months :D

I called and asked bank to give me the statement, and they did and it showed no problems !! LOL !!

Even for me :)

Hope they shoudn't trace the due amount in a latter stage :D

Kotaks on a trip!! I have two car loan accounts running with them...hope the same generousity rubs off on my loans too :)

WHOA, I need to check with Kotak, If they close my loan for me similarly I will buy the new Ikon D :)

Dont worry, all penalty and bouncing charges are levied and adjusted during the last month of loan closure.

Initially nothing shows.:D

Be careful with this one. Even if they have sent the cheque and act funny as they did not know about this, in the last, they may put a hefty sum as penalty (interest?) as non-payment of the EMIs. Getting a letter from them that the loan is closed or they will not recover any amount for this will be a wiser decision at this point of time.

Ashish, SNaronikar is right, my experience has been that there are huge communication gaps between the various Departments within the same organisation. Best to get a letter from them stating that all is OK & the Loan is squared up.

This will help you when some idiot from the Collection agency keeps hounding you subequently about "Outstanding" instalments because they may have no information.

Wow Vkochar, you're really lucky. PM me the name of the bank, I'll make sure I withdraw any funds with this particular bank. With this kind of behaviour, wont be long before it goes bust.

On a more serious note, they will refuse to issue you a Loan Closure document (Form 35) unless all your EMI's are paid in full. Any pending EMI's will have to be paid with interest and late fee charges. This is if the banks internal accounting systems are working fine. What surprises me is how they've issued you an account statement which shows the EMI's for these 3 months as Paid??? Something smells rotten here....

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.

Don't banks normally take a few more cheques than required?

Like in my case I had electronic debit, but they still took a couple of cheques which they never used.

This is pretty odd, but in my case too, the monthly EMI cheque (for last month) has not yet been presented by my Loan Provider either. It is 20 days overdue already.