I had taken homeloan from cent bank,they are cheating me,where shall i complain?hi friends, i had taken my home loan(floating) from central bank known as cent bank for finance.They raised the interest rate from 10 percent to suddently 12 percent and have given me the letter today,when i asked the manager he told us that it was from the main branch and we have to pay it.this same year they... |
If you have a floating loan it is likely known, in the industry, as an ARM or adjustable rate mortgage. Many of these mortgages have a clause in them that they are allowed to fluctuate as much as 3% or 5% from the original APR of the loan. Most are up to 3%. What you are experiencing is the fluctuation or adustment of your (floating) APR.
As noted earlier this is one of the reasons that we are in this mess. Another is that people who should have neverr recieved loans recieved them through whatever program. Usually the companies writing these loans were charging a point to 4 points as a no documentation fee and then selling the loan after it was written. It's pretty bad.
ARMs given so that people who can not afford homes can afford them with a higher fixed rate (an ARM may start out at 4.5% interest and fluctuate between 4.5%-7.5% or 9.5% and a 30-year fixed may start (and stay) at 6% interest). The problem is that these folks aren't given a home closing HUD form showing the max they will pay at 12%. It can really open your eyes and a 3%-5% fluctuation can actually double your interest payment (or more) on some loans! Your $1200/mo payment may go to $2200 a month or more and you are still only paying $200 a month to principal!
So what is happening now is credit is harder to get, people are starting out paying higher interest rates, people with marginal credit are paying higher rates, people without marginal credit are paying higher rates even for fixed APR loans, and the mortgage market is losing investors as well as losing people paying their loans and less money is available.
That having been said, what you are experiencing is the natural rise of the market in these conditions.
i bet they told u that it was not adjustable .that is the exact reason we are in the mess we are in now people loosing their homes. There is only one company i know that can help you without hearting you further or putting u in more debt and that company is primerica financial services they have something called a smart program if u get into that they will take u out of that loan and maybe even help u pay of the house sooner make sure u tell them to help u pay of any debts you have while they are at it call or contact me for more info 6098474479 [email protected]
Probably you can't do anything. Officers do such things when there are instructions from mother branch. Since this is a nationalised bank, anybody will do wrong at his own risk. If it were a private bank I would have suggested you to complain.
As soon as you are able refinance your loan with a major lending bank.
Get a fixed rate. This loan you have will continue to go up and could lead to disaster!
You can complain to Reserve Bank of India, they can handle any bank very well if u have a valid reason of complaint.
What are the terms of your loan? Why do you say they are "cheating" you?
file a complaint.go to consumer court...no other ways would help you solve this...
