Debt Counselling: Sanjay Agarwal

I lost my credit card recently (limit Rs 50,000). I had an outstanding of Rs 20,000 on it. I immediately called up the bank and asked it to block the card. I also filed a police complaint. My next statement showed new transactions, in addition to my previous outstanding, of Rs 80,000. The transactions were done a day after I asked the bank to block the card. However, the bank is asking me to pay. I have written to the nodal officer but there has been no response. I want to know how can the bank allow transactions over my credit limit? What can I do now?
In such cases, the liability of the customer is limited to expenses incurred till the time the loss of the card is reported and an acknowledgement obtained from the bank. If the intimation is on the phone, the bank provides a complaint number. Since you reported the loss to your bank immediately, no further expenses/charges should be debited to you. You may write one more formal letter to the nodal officer of your bank mentioning that if these expenses/charges are not reversed, you will escalate the complaint to the banking ombudsman. You can get the name and the address of the banking ombudsman of your area from RBI’s website. Kindly approach him in case the matter is not resolved satisfactorily.

I run an export business. I have taken home, car and personal loans from different banks. I got a call from another bank that if I transfer the housing loan to them, they will take over my other loans at cheaper rates. How does this work? What are the things I should look for before accepting such an offer?
To transfer loans from one bank to other, you have to foreclose your current loan accounts. Normally, all banks charge a pre-payment penalty to foreclose loans, particularly in case of balance transfer to another bank. Also, hypothecation in registration documents needs to be changed in favour of the new bank. You should calculate the expenses for transfer of these loans, including the above, and the service charge for new loans, if any, to arrive at a decision. Moreover, the current banker may insist on full payment before removal of hypothecation from registration documents, while the new banker may insist on its lien marking before disbursement. You need to discuss this with the new banker in advance. Alternatively, you can also check with the new banker if he can sanction a slightly higher loan amount for your home that covers all three loans, in which case you will have only one home loan and hypothecation will not be required for your car.

The writer is the vice-president and group head, retail strategy and branding of Arcil. 
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