Harsha Shetty alleges misrepresentation in his HDFC personal loan agreement, where promises made by HDFC executives contradicted the written contract regarding pre-closure charges. Choice4Voice.com highlights his complaint and explains the legal remedies available.
HDFC Loan Misrepresentation Complaint – Harsha Shetty’s Experience
Complaint Summary
| Details | Information |
|---|---|
| Complainant Name | Harsha Shetty |
| Not disclosed | |
| Not disclosed | |
| Complaint Type | Loan Misrepresentation / Fraudulent Assurance |
| Company/Brand | HDFC Bank |
| Product/Service | Personal Loan |
| Loan Number | PE15092562438 |
| Issue Description | HDFC Bank’s representative allegedly misled the complainant regarding pre-closure charges, giving verbal assurances that contradicted the signed contract. Written confirmation was promised but never received. |
| Date of Incident | 15/09/2025 – 17/09/2025 |
| Company’s Response | No corrective action taken despite acknowledgment of error by HDFC staff. |
| Additional Comments | Complainant requests that HDFC Bank review call recordings and align contract terms with verbal promises. |
Full Complaint Details
Mr. Harsha Shetty, Managing Director, has raised a serious grievance against HDFC Bank regarding his personal loan agreement.
- On 15 September 2025, while onboarding through a phone banking executive, he noticed that the loan agreement included pre-closure charges even after 12 months.
- He raised this concern before signing but was assured multiple times by Ms. Divyajyothi M (Customer Service Executive) that no pre-closure charges would apply after 12 months.
- According to Mr. Shetty, she further promised that the line was recorded and he would receive written confirmation via email by end of the day.
However, when he wrote to the given email address, it bounced back the next day, raising concerns about fraudulent practices.
When Mr. Shetty escalated the matter, Mr. Mohanraj P (Asset Manager, Phone Banking, Chennai) admitted that an error had occurred but insisted that nothing could be done, effectively leaving him stuck with unfair loan terms.
Mr. Shetty has now publicly demanded:
- HDFC Bank review the call recordings and honour the assurance.
- A written correction to align the loan contract with the promises made.
- An alternate remedy that does not penalize him for a sales error.
Legal Perspective – Can Legal Action Be Taken Against HDFC?
Yes, this situation falls under misrepresentation and unfair trade practices. Under Indian law, a customer can:
- File a complaint under the Consumer Protection Act, 2019 – Misleading assurance by bank staff amounts to “deficiency of service” and “unfair trade practice.”
- Seek relief before the Banking Ombudsman (RBI) – RBI regulates fair banking practices, and any false commitment by executives can be challenged.
- File a civil suit for damages – The complainant may seek compensation for financial losses or distress caused by fraudulent assurances.
- Escalate to RBI and SEBI (if related to loan/financial investments) – Non-compliance with transparent disclosure norms can attract regulatory penalties.
If the bank fails to resolve the matter, Choice4Voice.com can assist in filing a legal case on behalf of the complainant.
How Choice4Voice.com Helps Customers
At Choice4Voice.com, we believe no customer should suffer in silence. Our role is to:
- Publish complaints publicly to create awareness and pressure companies into taking accountability.
- Guide consumers legally on filing complaints with the Banking Ombudsman or Consumer Forum.
- Escalate complaints by filing cases on behalf of victims if brands fail to act responsibly.
- Assist in documentation and evidence collection for legal proceedings.
By featuring such complaints, we ensure public accountability and act as a bridge between consumers and corporations.
Conclusion
This case highlights a serious lapse in HDFC Bank’s customer service and ethical practices. A sales executive allegedly misled a customer by giving false assurances that contradicted the loan agreement.
If HDFC does not address this issue immediately by:
✔ Reviewing call recordings,
✔ Issuing a corrected agreement, or
✔ Offering a fair remedy,
then legal action may be the only way forward.
Choice4Voice.com stands with Mr. Harsha Shetty and urges HDFC Bank to resolve this matter transparently and fairly.
FAQs on Loan Misrepresentation Complaints
Q1. Can a bank be held liable if verbal assurances differ from the written contract?
Yes, under consumer law, misleading or fraudulent verbal assurances can be challenged if the customer can prove them (through call recordings, emails, or witness testimony).
Q2. What is the role of the RBI Banking Ombudsman in such cases?
The Banking Ombudsman is an RBI-appointed authority where customers can file complaints against unfair banking practices without hiring a lawyer.
Q3. How long does it take for a Banking Ombudsman case to be resolved?
Typically, cases are resolved within 90 days, but it can vary depending on the complexity of the case.
Q4. Can pre-closure charges be waived by a bank?
Yes, banks can waive pre-closure charges if the charges were wrongly imposed or if misrepresentation is proven.
Q5. What evidence is required to challenge a bank on misrepresentation?
Call recordings, emails, screenshots of bounced communication, and the original loan agreement are strong pieces of evidence.
Q6. Can I sue a bank for financial and mental harassment?
Yes, you can claim compensation for both financial loss and mental agony under the Consumer Protection Act.
Q7. How can Choice4Voice.com support me in fighting banks legally?
Choice4Voice.com can publish your complaint, connect you with legal experts, and even file cases on your behalf if needed.
Q8. Are verbal assurances legally binding in India?
If backed by evidence (recordings or witnesses), verbal assurances can form the basis of a misrepresentation claim.
Q9. What should I do if I feel misled during a loan process?
Immediately raise the concern in writing with the bank, escalate to the Banking Ombudsman, and keep all records safe.
Q10. Can Consumer Forums penalize banks?
Yes, Consumer Forums can impose fines, order refunds, and direct banks to compensate the consumer.
Q11. Does RBI protect borrowers from unfair charges?
Yes, RBI guidelines require banks to disclose all charges transparently; failure to do so is a violation.
Q12. Can pre-closure terms be changed after loan approval?
No, terms cannot be changed arbitrarily once a loan agreement is signed.
Q13. If the email provided by a bank employee bounces, what does it imply?
It may indicate misrepresentation or lack of transparency, which strengthens your case.
Q14. What is the cost of filing a consumer complaint against a bank?
Filing fees are nominal (ranging from ₹100 to ₹500 depending on claim amount).
Q15. Can multiple customers file a joint complaint against a bank?
Yes, if multiple customers face similar issues, a group complaint can be filed.
Q16. Does Choice4Voice.com charge customers for complaint submission?
No, complaint submission is free. Legal case support may involve charges, which are communicated transparently.
Q17. How long does it take to get justice in consumer court?
Depending on the case, it may take 6 months to 2 years, but interim relief can be sought.
Q18. Can HDFC Bank be penalized by RBI for such cases?
Yes, if systemic misrepresentation is proven, RBI can impose regulatory penalties.
Q19. What is the best first step in case of bank misrepresentation?
Document everything, escalate within the bank, and then file a complaint with the Ombudsman.
Q20. Why should customers use Choice4Voice.com?
Because we amplify your voice, create public pressure, and guide you legally until justice is achieved.
