Yes you read that right! HDFC actually marked an Loan EMI as late payment for making an advance payment.
So let me explain in detail...
I have an Home Improvement Loan for which my account is automatically debited on every 15th through NACH Mandate.
On 26th August I made a request for two things to increase my every month's EMI amount and also prepay some principal amount.
On 27th August they reverted back to me with a requirement to fill a form of how much amount I want to prepay and I duly filled that form.
On 28th August they sent me a link to prepay that amount with a valid for the same date only and I successfully made the payment.
On the same day they sent me the prepayment letter for the same and in that the updated increased emi was also mentioned.
But here they made a blunder, they actually made the "Date of commencement of EMI" from 01-Aug-2024 instead of 01-Sep-2024 and I didn't notice this as thought that I have prepaid a greater sum already maybe they would adjust from that or maybe they would deduct the additional amount through NACH again and this didn't happen.
So next month on 15th they deducted the difference of (new emi - old emi) + the new emi for September month. And I thought that I am all done.
But until I was proven wrong...
On 16th September I received an email from HDFC that I have missed an emi for August and must pay the amount and they will report this to Credit Bureaus and I freaked out as its a worst nightmare of a Credit Card user. As I also hold multiple other Credit Facilities from HDFC like Credit Card etc. I was confused for which of them this has happened.
I confirmed with the HDFC Bank customer care and they confirmed that everything is alright and I have paid all Credit Card bills and everything is settled and I can only confirm with HDFC Ltd department which is different and it was late so I could ask them next day itself.
So I asked them on email and they were just sending acknowledgement emails that it has been transferred to concerned department etc. etc. and didn't take any substantial steps for 2 working days. Meanwhile I checked my CIBIL on Gpay and it was marked as late payment and my CIBIL Dropped drastically.
So on 19th September I raised an complaint with RBI Ombudsman and also sought compensation as I read on this forum that many others have got hefty amount in compensation but I wasn't lucky enough but...
Next day the Relationship Manager from local branch called and apologized and said that as emi start date was updated as August that's why this happened and if I would have told them beforehand this would have not happened while I argued that this is bank's system at fault as why did it even allow doing this and asked him a favour.
I asked him to lower my interest rate for free without any fee and he happily did.
By 1st October my cibil was back up and late payment was removed. Also interest rate was reduced for free.
So the moral is don't do multiple requests with the bank regarding same loan at once as they can make blunders. As on the same date I asked them for increase in emi amount for my Home Loan and in that the emi start date was from September.
So let me explain in detail...
I have an Home Improvement Loan for which my account is automatically debited on every 15th through NACH Mandate.
On 26th August I made a request for two things to increase my every month's EMI amount and also prepay some principal amount.
On 27th August they reverted back to me with a requirement to fill a form of how much amount I want to prepay and I duly filled that form.
On 28th August they sent me a link to prepay that amount with a valid for the same date only and I successfully made the payment.
On the same day they sent me the prepayment letter for the same and in that the updated increased emi was also mentioned.
But here they made a blunder, they actually made the "Date of commencement of EMI" from 01-Aug-2024 instead of 01-Sep-2024 and I didn't notice this as thought that I have prepaid a greater sum already maybe they would adjust from that or maybe they would deduct the additional amount through NACH again and this didn't happen.
So next month on 15th they deducted the difference of (new emi - old emi) + the new emi for September month. And I thought that I am all done.
But until I was proven wrong...
On 16th September I received an email from HDFC that I have missed an emi for August and must pay the amount and they will report this to Credit Bureaus and I freaked out as its a worst nightmare of a Credit Card user. As I also hold multiple other Credit Facilities from HDFC like Credit Card etc. I was confused for which of them this has happened.
I confirmed with the HDFC Bank customer care and they confirmed that everything is alright and I have paid all Credit Card bills and everything is settled and I can only confirm with HDFC Ltd department which is different and it was late so I could ask them next day itself.
So I asked them on email and they were just sending acknowledgement emails that it has been transferred to concerned department etc. etc. and didn't take any substantial steps for 2 working days. Meanwhile I checked my CIBIL on Gpay and it was marked as late payment and my CIBIL Dropped drastically.
So on 19th September I raised an complaint with RBI Ombudsman and also sought compensation as I read on this forum that many others have got hefty amount in compensation but I wasn't lucky enough but...
Next day the Relationship Manager from local branch called and apologized and said that as emi start date was updated as August that's why this happened and if I would have told them beforehand this would have not happened while I argued that this is bank's system at fault as why did it even allow doing this and asked him a favour.
I asked him to lower my interest rate for free without any fee and he happily did.
By 1st October my cibil was back up and late payment was removed. Also interest rate was reduced for free.
So the moral is don't do multiple requests with the bank regarding same loan at once as they can make blunders. As on the same date I asked them for increase in emi amount for my Home Loan and in that the emi start date was from September.
