Sir,
I took a loan for purchasing a car last year from “:Family Credit Ltd”, Chennai. My EMI was deducted by bank through Electronic clearance system (ECS) on 5th of every month. When I wanted to foreclose the loan on 22 of Jul 09, I was told that I cannot do this after 20th of any month and I can only do so after the next ECS. So I went to them on 6th of Aug and gave a cheque for foreclosure. Besides being forced to pay an extra interest between 22 of Jul to 5th of Aug, they also deducted more than Rs 700/ as interest over and above the normal interest on the pretext that the next couple of days are bank holidays.
The most unpleasant experience comes after this. They refused to issue “No Objection certificate” to enable me to close the “Hypothecation” in the RC book. They said that the certificate will be issued only after 30 days from their Calcutta branch. Now I had sold the car to someone for a very good deal after advertisement in the local paper. The person returned the car for want of this certificate. Now the money I paid for the advertisement is gone and I have to wait for one more month for this certificate
No other company in India does this. The banks issue the certificate immediately on full payment for foreclosure. The agent who arranged for the car loan initially had not explained this to me because I would have never opted for the Family Credit Ltd had I known this. I am now stuck.