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UHello,
I received sms from hdfc bank (my primary banker) in Jan 2026 in cryptic message that LAD documents were required to be submitted. I didn’t understand this and wrote to their cust care asking for clarity.I reached out to them seeking clarification on what exactly was required, since I have multiple products with the bank and there was no clear indication of which loan or insurance requirement they were referring to. Around the same time, I began receiving SMS reminders stating that I needed to submit an insurance policy by 24 February 2026, failing which a penalty would apply. These messages did not indicate that the bank would procure insurance on my behalf or debit my account.
Despite this, on 21 February 2026—three days before the stated deadline—the bank debited ₹5,023 from my account towards a property insurance policy. This was done without my consent, without OTP authentication, and without any mandate or signed authorization. I immediately raised objections through customer support, the grievance team, and later the nodal officer, clearly stating that the debit was unauthorized and that I had not been pre-informed of any such action.
The bank responded by claiming that insurance was mandatory as per the loan terms, that reminders had been sent, and that they had acted to “facilitate” renewal of the policy. They also stated that I could submit an alternate policy and request cancellation, but did not provide proof of prior communication, authorization, or past insurance records.
Since the responses remained unsatisfactory, I escalated the matter to the Reserve Bank of India under the Ombudsman scheme. In my complaint, I highlighted the lack of consent, the absence of any clause allowing unilateral debit, the mismatch between the SMS deadline and the actual debit date, and the broader concerns of mis-selling and unfair practice. The bank, in its submission to RBI, relied heavily on the sanction letter clause stating that the borrower is responsible for ensuring the property is insured, and argued that it acted within this framework after I failed to submit proof of renewal.
I responded by pointing out that the clause only places responsibility on me to maintain insurance and does not authorize the bank to procure a policy or debit my account without consent. I also emphasized that no communication had warned of such action, and that the debit occurred even before the deadline mentioned in their own SMS.
However, the Ombudsman ultimately accepted the bank’s interpretation. The complaint was closed on the grounds that no deficiency in service was observed, with the reasoning that insurance was mandatory and the bank had acted in line with the loan terms to protect the secured asset. The decision did not address my arguments regarding lack of authorization, premature debit, or absence of explicit consent. With that, the case was closed under the scheme, marking the end of the formal complaint process with the Reserve Bank of India.
Can I approach consumer court to get relief and compensation for this ordeal ? What do you suggest ?
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