Debt Recovery

Bank has frozen my account without my consent

Hi, I am a business man and have got a Cash Credit (CC) account with a bank. This is against collateral of my house and also have a home loan going on over and above for the same house. My wife is a guarantor and co-applicant in the CC as she co-owns the house. My wife has separated from me since past 1 year. A few months back she had written a letter to the bank asking not to allow me further credit and to not allow me access of the unutilised credit amount. Just with this letter, the bank froze my account without even consulting me on the situation or informing me of their action. This firstly to me was totally not right act and approach. Besides this CC account I had a separate Term loan current account. This account being different was operational in usual manner. Recently, I rcvd a little bigger credit amount in this account. The bank on seeing this have debited my term loan account for a big value as part of interest recovery for the other CC account. How can a bank just debit another account ( even though of the same bank) for interest recovery forcefully?? Is this legal and I would like to know what action can I take against the bank.

Expert Advice

Dear sir, really speaking its sad state of affairs. Actually, no guarantee can be withdrawn by this kind of notice. Even though your got separated from you, that does not absolve her from liability. She continues to remain liable till entire amount is repaid. Upon receipt of such letter from your wife, Bank could have transferred the facilities in your name and could have continued the facilities. It is arbitrary on part of Bank act upon such letters and stop operations in account. You can file consumer complaint. you can file civil suit also for damages.

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Bank can not close or frozen their customer account without giving notice or general information. You can file a case in consumer forum for Deficiency in services and a private complaint under criminal breech of trust

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