PNB Housing Limited collects blank signed papers from customers in the name of loan processing. Interestingly, the blank pages we had to sign already was notary attested. I am not going into the legality of that now, but I was frustrated about adding details there which we had clearly asked not to do; especially enrolling people to Tata AIG insurance without consent. 

We were doubtful of this whole process from beginning and hence decided to gather some proof in the form of image, video and audio recordings. This was mainly because we had already seen some related reviews about PNB Housing Limited at  www.consumercomplaints.in. A simple google search will fetch you those details.

After all the initial talks were done (and also after some waiting and follow up), two representatives came to our home. I was surprised as they had all blank notary attested papers and asked us to sign on it. They said our interest rate was not approved and hence they will print on this. Since I am not a great fan of signing in blank pages, they suggested only my wife sign on it and I could go and sign when details are printed.

In between I got a all from an insurance person asking if I need insurance and I said I will decide on it later. The insurance amount was much higher compared to the loan amount, based on my previous home loan from SBI. The original representative from PNB had called me to confirm it and I clearly said no insurance. 

Again, after that, after lots of follow ups, I finally got a call from the representative asking to come to the bank as the documents are ready. I went there again as per appointment taking leave from work and  was surprised to see that documents were not ready. I had to again sign on blank pages, as I was told the manager who has to approve is not yet in (it was evening). But they asked to trust them and said they will send all documents the next day.

Next day went off and then later after following up again, they sent the details, I was surprised to see that they had added insurance into my blank signed pages and that too for a higher amount than was mentioned by the insurance person. We called up the representative again and he said since we have not signed on the insurance request forms, it should not be a worry and should be a mistake.

The relationship manager was also very rude in the end and said if we need we can cancel the loan or take any action including court proceedings and they do not care. Did not expect it from a relationship manager. The relationship manager finally said he will send a mail from his official mail ID confirming this. So decided to wait. 

Summary

Personally, I should have done some research on them before applying. I  have previously taken home loan with SBI and even if there were some delays, processes were all as per books. I made mistake trusting PNB mainly as they were introduced to us by the builder. In any case, Don't Sign On Blank Paper Provided By PNB even if it looks like they are going to save us some time. Most of the conversations are recorded anyway, for any authorities to verify. 

So my open questions are:

1. Is it a blank paper scam run by PNB?
2. Is It Legal For PNB Housing To Collect Blank Customer Signed Notary Attested Papers?
3. Do they get any commission for adding people to Tata AIG insurance?
4. Do Tata AIG insurance people issue insurance without people consent?
5. Do they take blank signed papers so they could write in whatever they want.
6. How many people will actually check everything written on the papers after dispersal?
7. Is there any management or body of law that controls these things?

From the internet 

I could see many complaints from the internet and could even see that they don't care about even RTI request.

• Delhi: PNB manager, 4 others held for stealing from customers
  • http://www.hindustantimes.com/delhi/delhi-pnb-manager-4-others-held-for-...
• PNB — Refused to reply under RTI
  • https://www.consumercomplaints.in/complaints/pnb-refused-to-reply-under-...
• A lot more reviews can be found below:
  • http://www.mouthshut.com/product-reviews/PNBHFL-PNB-Housing-Finance-revi...
  • https://www.consumercomplaints.in/punjab-national-bank-housing-finance-p...

Updates

Finally decided to publish the post as the last deadline given by the relationship manager has also failed. 

Forwarding this to

• representative Vinay Vinu @ vinayvinu392@gmail.com,
• the relationship manager Jaison Ed @ jaison.ed@pnbhousing.com, 
• sabyasachi.mishra@pnbhousing.com, 
• manjunatha.bv@pnbhousing.com. 

Update as on Apr 30, 2017 at 10:13 AM

At the outset, we sincerely apologize for the inconvenience caused to you due to our delayed response to your query.

This mail is to confirm that the Tata AIG insurance premium of Rs.40,000  attached along with your plot loan ( Loan account no -XXX)availed for the purchase of a plot with YYY is been removed and funds is been reversed.

In the account statement, I can see a new entry DISPURSEMENT REVERSAL with a debit and credit of 40000. The total amount is unchanged and the original debit too. So I have asked for clarification on this along with the new EMI amount. 

All these headache could have been avoided if I had signed after they had printed the content.

Final Update

They have added 40,000 to disbursed, but added an entry as if I have paid back the 40,000 to principle. Hope things will be fine now.

Moving the status to RESOLVED. But will keep the post as this will be a lesson for anyone who sign on blank paper.