Videshi Bank Story

This is the true story of an experience with a new age MNC Bank's service.Did someone say that gone are the days when credit was difficult to obtain?Well,that still holds true.But I have experienced that dealing with a new age MNC Bank(hereinafter called the Videshi Bank).... can be frustrating .......Made me wish I had stuck to my not so friendly neighbourhood PSU Bank.
Well, it all started the day I got tired of my four years old Maruti 800.Although it had done service uncomplainingly to my heavy usage ,I felt the time had come to move up and go for a new car.After many test drives of the WagonR,Santro,Palio and Alto, I had zeroed in on the Zen.
Now I needed a person to buy my old car .I rang up to the used car division of a new age Private Desi Bank.He sent a man who was very professional about the task.He finalised the sale for a good price and passed me on to the credits division.But then,I was wavering a bit.I still rue the day I decided to act smart and negotiate for better interest rates.The friendly neighberhood PSU Bank offered me credit at 12%.The new age Private Desi bank offered at 11% .But the car dealer suggested a new age Videshi Bank who sent his man to my doorstep.Good service,I thought.Then I asked him for ID.He turned out to be the employee of an agency employed by the Videshi Bank for roping in new customers.Maybe the Videshi chaps are too busy dealing with the big fish to justify their indecent salaries and snooty accents,I consoled myself.
The offer was the best .Interest only 10.57%,paperwork at your doorstep etc etc.I was impressed by the interest rate and the service.How do you do it?,I asked.We have this arrangement with dealers and the dealer's discount is passed on through the financier,he said.As for service,it's just that the Videshi Bank has outsourced its' operations to such an extent that service is personalised.Well....hm... out sourcing,discounts packaged into finance.....it was a new world,I thought.Gone are the days when you had to stand hours before the PSU Bank Manager for his loan sanction.
He took a few signatures and pronto came the new car.The loan amount was given directly to the dealer by the Videshi Bank and my life was so much more enriched.
A few days later I got a whole bunch of material which contained detailed instructions about the Savings Bank Account which I had opened (unknowingly )with the Videshi Bank.Must be one of those papers I had signed ,I consoled myself.There was a nice personalised cheque book and debit card wherein my name was spelt wrongly.Maybe these Videshis can't get Indian names right,I thought.Or maybe the agent had given my name wrongly.One day,I met my PSU Bank Manager friend.He asked me whether I had bought the car.I told him,yes....and also that I got a better rate from the Videshi Bank.He warned me that the service and rates of Videshi Bank hides a lot of things.What? I asked.You will know soon,he replied.Firstly we don't charge any prepayment penalty.And secondly the videshis are not exactly transparent, he said,with a wink.
In all the papers that the Videshi Bank had sent me,there was no mention about how to pay instalments etc.Mostly it dealt with the Savings Bank Account.I contacted the agent and he advised me to drop the instalment cheques in their ATM drop box.The savings bank account is only a zero balance account which is extended as a gesture of goodwill to build an enduring relationship with clients . I need not use it if I don't want to.That sounded like a lot of gobbledygook to me.
I paid my instalments promptly.Dropped a cheque every month at their swanky ATM located in a posh locality in the city.Every month two statements would come.One of a Savings Bank Account showing a nil balance and the other,a slowly depleting loan account.
The trouble started when I received a notice stating that an instalment has not been received and that penal charges will accrue until the payment is received in the car loan account.I was surprised.Could my cheque for the month have not been debited?Or had I forgotten (unlikely) to pay this month? I received the notice on a Friday and was frantically trying to contact the Customer service Officer's number given in the notice.There was no reply.Being the New Year/Christmas weekend ,I thought maybe the Videshis were living it up on the dance floor.Finally on Monday after several attempts,I got through to the customer service Officer.He said that a princely amount of Rs 3 has been debited to my savings Bank account as a result of which the entire instalment amount of almost 4000 rupees had not been accounted against the loan.Why was Rs 3 debited? I asked.He didn't know.I would do better by calling the Savings Bank people,he said.Why can't you at least credit the remaining amount to the loan account?I asked.Can't be done,he said,since it falls short of the instalment due.I was getting irritated by now.I explained that I never wanted a savings bank account with them.I said "You couldn't even get my name right in the cheque book and debit card.And now you say that I owe you Rs 3 as a result of which my entire installment has fallen short. You better reverse the 3 rupee debit and pay my installment." He promised to speak to the Savings Bank people about it.Any way I don't want a savings bank account with you and I am returning the misspelt debit card,cheque book etc,I said and put the phone down.
I returned the chequebook, debit card etc along with a covering letter and dropped it at the swanky ATM.I expected to hear from them soon. There was no word. Finally I decided to speak to the Savings Bank people. It is an interactive voice response system, which greets me. I am told that all the customer service officers are busy at the moment and also reminded me that I am a valued customer and hence would I be kind enough to hold on? I was treated then to a rendering of ….was it the theme from Greensleeves,that great romantic and sad piece rendered by Vaughan Williams played on telephones worldwide for call waiting to soothe frayed nerves…. or was it the Moonlight Sonata by Beethoven ? I forget now… I was in no frame of mind to enjoy great music. The announcements interspersed with music went on and on. This went on for a good five minutes and I was getting fidgety. Just as I was about to give up, finally a sweet voice responded. She asked my name and pin numbers. I plead that I can't remember my pin number. How can I remember the pin number of a Savings Bank account I have never used? She asked me several intimate questions, like my date of birth, address etc.When she is finally convinced that I am not impersonating, I pop the question. Why have you debited Rs 3.She punched a few keys. Asked me whether I had done any transactions? I said no.I have never used the account which I never wanted in the first place. And also that you people had not even got my name right. She says it is inexplicable. She said I could get back after 4 working days to get an answer. I lost my cool. I explained the position regarding my car loan and said that penalty on the loan is accruing. She said nothing can be done now and I should get back after four working days. You get back to me, I said. Your loan people already promised me that they would get back to me and it has been four days already. No way, she repeated. You get back after four working days. I bang the phone down in frustration.
I spent a couple of days more fuming and fidgeting. Finally after the New Year was over I got through to the loan people. They said that now there is a credit of Rs 12 as a result of which there is enough money in my account to pay the installment. I again lost my cool. First you said there is a debit of Rs 3 and now there is a credit of Rs 12.I have paid my money to the loan account and who asked you to debit or credit any amount in Savings Bank Account? He had no answer.
After three days I received a letter from them stating how sorry they are for the inconvenience caused to me. They also said that they are closing my savings bank account and I can continue to pay my installments to the loan account. As for the mysterious debit of Rs 3 from a (supposedly) zero balance savings account, I am yet to learn what it was for. Nor have they offered any explanation for the entire mix up.
I thought the story would end with that. But a bigger surprise awaited me the next month. I received another notice from them stating that my loan account has fallen short by another princely sum of one paisa and would I be kind enough to remit it failing which penalty charges would accrue. For good measure the letter was dispatched to me in a postal envelope spending five rupees towards postage. I thought these guys were business savvy!!!!This was a revelation….
I rang up to them once again. The loan officer asked me to ignore the notice. He said it is a computer generated one and issued from their headquarters in Mumbai. Wouldn’t someone read the notice before it goes to the mailroom? I asked. He had no answer. My name is still spelt wrongly in the notice.
I am looking for a way to end my relationship with this Videshi Bank at the earliest. This would entail raising a loan at a higher interest rate from elsewhere. It would also mean that I will be shelling out a large amount as prepayment penalty also. But I am convinced that these Videshis are no good at the retail banking. They have entrusted their entire business to a few computers and faceless call centres.They should stick to their pricey clients and leave us Aam Janta alone.