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  • Category: Lawyers

    Extra EMI collected on homeloan

    Searching for information about homeloan EMI? Wondering how to recover EMI collected twice for the same month? Check out this page for the legal way to resolve this problem.

    A financial institution which gave me home loan collected the EMI twice during the month when my loan was transferred. I didn't get proper response when I approached them. It happened in 2014 April/May. Due to personal problems, I was unable to look into this at that time.
    Now, Can I approach Consumer court on this problem ?
    orwhat are the other ways to legally approach this problem?
  • Answers

    3 Answers found.
  • Sometimes such errors and overlaps happen. However the amount would be duly accounted in the loan account. However as many institutions follow the pre-scheduled recovery plans(recovery of EMI as per schedule) entrusted or outsourced to third party service providers, making a correction immediately may not be possible. But the extra recovery can be compensated later before or at closure or liquidation.

    So what you should do now is:;
    1. Get the loan account statements from the start and keep it properly filed with you.
    2. Ensure that the EMI which you said was extra is also credited to the loan account. If so you nee not worry.
    3. Write to the institution(enclosing the relevant statement copy) to adjust your number of EMIs by reducing one EMI recovered extra referring it and highlighting it for their reference.
    4. If you have given any Post dated Cheques, then you can ask them to give back one last PDC for the extra EMI recovered.
    5. Whether they do or not get a copy of your letter acknowledged by them. This will come to use if any problem occurs later.
    6. Please keep following up your loan account by knowing the outstanding principal and interest periodically half yearly or annually.
    7. Follow up more closely when your repayment period is coming t close. Make a review and adjust EMIs accordingly.
    8. Some banks which are not so crowded and where you have more dealings may be able to make the amends and updation relatively easily and promptly.

  • You have to prepare a detailed claim letter mentioning that one extra EMI has been taken by them. For this you have to annex a copy of bank statement where this is reflected.

    In your claim letter you have to give a brief chronology that when the loan was granted by them and when they started to recover it and what was the date of last scheduled recovery. This information will help them to tackle the case in a clear manner.

    Please check whether the recoveries are done as per the scheme and prospectus of the loan. Was there any clause that on transferring the loan one extra EMI will be deducted towards administrative charges. If such a thing is there your case for refund does not stand.

    Anyway if you have seen those aspects you can write in your application that in case they do not refund the amount you will be forced to take legal course. Regarding consumer court please check whether the case is time barred or not. You have to file a case in consumer court within 1 year of the event.

    Knowledge is power.

  • This type of incident occurs very rarely. Probably the advise to bank for your loan giver has gone twice. You make a representation to the institution where from you have taken a loan mentioning that the EMI is deducted two times for the same month. Get your bank statement in which this two times deduction is mentioned. Send the letter by registered post or go personally . Submit the letter and take the acknowledgement. If you have time you cam meet the concern clerk. He will open your account and observe whether two times it is deposited in your account. Once it is seen they will not deduct next month or adjust in their future collections. Complete the work before next month deduction comes. If it is late the whole issue will become more complicated .

    always confident

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