HDFC Bank will reimburse GPS device commissions to car loan customers

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HDFC Bank announced Thursday that it will reimburse commissions to auto loan customers who used bundled GPS devices as part of the auto loan financing during the period FY14-FY20.

In a public notice, the bank said, the refund will be credited to the customer’s refund account as registered with the bank.

“In case of questions or in case of closure of such a bank account, these customers are requested to contact the bank from their registered e-mail address or to call the numbers with the detail of the loan account number in the next 30 days, “the bank said. noted.

The Reserve Bank of India (RBI) had fined the country’s largest private sector lender, HDFC Bank, a fine of Rs 10 crore for breach of regulatory compliance in the auto loan case.

The RBI took action after receiving a whistleblower complaint about irregularities in the bank’s auto loan portfolio.

It was alleged that HDFC Bank sold GPS products to its car loan customers and the cost of these devices was added to the loan amount. The bank conducted an internal investigation into the matter and said appropriate action had been taken against those involved in this division of the bank.

Bank executives are alleged to have sold GPS devices paired with auto loans to meet sales targets between 2015 and 2019.

Additionally, last year in September, US-based law firms Rosen Law Firm and Schall Law Firm filed class actions against HDFC Bank, accusing the private lender of failing to disclose to investors improper lending practices of his auto credit unit and making misleading statements. . The lawsuit also named Aditya Puri, the former managing director and CEO of the bank, Sashidhar Jagdishan, the current managing director and CEO and the company secretary Santosh Haldankar.

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