- This topic has 23 replies, 13 voices, and was last updated 1 year, 4 months ago by
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UI approached a bank for a loan, and they requested some documents, which I submitted. They then informed me that the documents needed to pass legal verification, so their advocate would review them and provide a final report.
The lawyer approved the documents, and the bank staff told me to collect the report from the lawyer’s office. However, when I went to pick it up, the lawyer asked me to pay 6K as a fee.
Isn’t this something the bank should be handling? Or am I actually required to pay this fee? This is a takeover loan, and with my previous bank, I didn’t have to deal with anything like this.
I plan to contact the bank about this tomorrow, but I wanted to check if anyone has experienced something similar.
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Syou dont have to go anywhere to collect the report. Its their lawyer they will prepare it and give it to bank. You dont have to pay anything to him.
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SWrong.
The lawyer’s fees are payable by the customer, in most cases.
However, the bank never asks a customer to collect the report and pay the lawyer directly. They deal with the lawyer and then debit the customer’s account for paying the lawyer’s fees.Now, a lot of banks have Home Loan Campaigns where they “waive” these fees, but in reality, they’re paying the lawyers out of their own profits. Technically it’s free for the customer that way. So maybe OP took a loan during such a campaign period, or had some kind of special benefit salary/saving/current account with said bank that made him eligible for the fees being waived.
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UOkay bank employs their lawyer then the customer paying for legal verification doesn’t make sense. As for the report the staff asked me to collect it since the lawyers office was near to my place so I went as a courtesy. Thank you for your reply and info, will ask bank about it.
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SBrother, a bank doesn’t EMPLOY the lawyers, they HIRE them for doing legal work on a case-to-case basis.
Just like a bank hires valuers to prepare valuation reports on properties. Both these are essential for a Home Loan.
Also, the charges for these should be mentioned beforehand, on the sanction letter of your loan. If they weren’t mentioned to you beforehand, please lodge a complaint through the bank’s website.-
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SBanks hand over in-principle sanction letters before the documents are scrutinized.
A clause is included which states that if the documents aren’t in order then the sanction would be cancelled. The applicable charges are also mentioned.-
UYeah that exists only in theory. No bank will waste their time like this. First step is vetting of documents, rest follows only after that. Even then LSR charges will not be mentioned in any sanction because they are not bank charges.
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SIdk where you’re getting your information from, but it seems quite outdated.
I’m speaking from personal experience, based on the things I’ve seen over the last 12-18 months.Also, not mentioning the applicable charges is a clear violation of RBI guidelines so no bank would fool around with that.
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UWhat they are telling is correct you do not get sanction letter before approval from bank’s end. Im not sure which banks you are talking about. I’ve approached icici hdfc etc in the past like ~2 years and all have first asked for document verification. The previous bank which granted me loan also gave the sanction letter after the approval of loan.
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UI understand that banks do not directly employ lawyers, sorry I did not word it correctly. What I meant was that the process goes through the bank, and the lawyer should not be asking me, as the applicant, to pay their fees instead to the bank. If my loan is not approved, what happens to this amount?
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SPractising advocate here:
getting the documents reviewed is the prerogative of the bank, not yours. The lawyer was engaged by the bank, not you. There is absolutely no reason for you to pay this guy.
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**Disclaimer: The information provided above does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available are strictly for general informational purposes only and create no liability on the provider of said information. Readers should contact their attorney to obtain advice with respect to any particular legal matter.**
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UIts not a scam just a normal Pratice in few area .. just bank people did not want to do the extra step of collecting the document so they asked you to do the same and fees it’s just a normal pratice in certain area but bank dicuarage it just ask your loan processing officer to do the same from it’s own end
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