No fee refund for fraud loan applications: HDFC Bank

Mumbai: HDFC Bank has said that as a practice it levies processing fees on customers attempting to avail loans with discrepant or suspect documents. However, it has denied reports that these cases are not reported on the bank’s fraud reporting system.

“The bank does not waive the processing costs from customers who come forward in such discrepant/suspicious cases. The processing fee is charged towards defraying the cost of efforts of the bank for additional due diligence and verification and not for closing the cases,” HDFC Bank said.

Responding to reports that frauds are not reported by the bank, the private lender said that in all cases, the bank updates its internal database to prevent any future application from the customer and also updates industry data to prevents such borrowers from indulging in similar practises with other banks, NBFCs & financial institutions. “Collection or non-collection of processing fees has no bearing on reporting to the internal & Hunter (industry) database or attempts to report to the police authorities,” the bank said.