HDFC Bank will reimburse GPS device commission to car loan customers
Private-sector lender HDFC Bank has said it will reimburse the GPS device commission to car loan customers who used the device in financing the car loan during fiscal years 2013-14 to 2019-20.
âThe refund will be credited to the customer’s refund bank account registered with the bank,â HDFC Bank said Thursday in a public notice published in a newspaper.
The bank has been in the midst of a controversy over the alleged mis-selling of GPS devices to its auto loan customers.
The Reserve Bank of India imposed a fine of 10 crore on the HDFC Bank on May 28. This came after the central bank discovered irregularities based on a whistleblower complaint in the bank’s auto loan portfolio.
A review of documents relating to the marketing and sale of third-party non-financial products to the bank’s customers, resulting from a whistleblower complaint to RBI about irregularities in the bank’s auto loan portfolio, revealed a violation provisions of the law and regulatory guidelines, the RBI had said.
HDFC Bank last year conducted an internal investigation into allegations that customers of its auto loans were given GPS devices without their knowledge. The allegations were first broadcast on social media.
The lender’s former chief executive and CEO Aditya Puri at the annual general meeting on July 18 last year confirmed that the bank had conducted an investigation into auto loans and that appropriate action had been taken. against employees involved in the misconduct.
The incident had also led to the exit of a number of executives from the bank. The cost of the device is estimated at around 18,000.