Blank check given


Hi to all members,

My sister took borrowed money @10% interest per month from someone she knows.

That guy asked her to give signed blank cheque, which she did.

She used to take money whenever needed, and that person happily gave it everytime.

Every month he collects the interest amount.

Total amount borrowed is 5 lacs in 5 years, amount repaid as interest is around 12-15 lacs, now she is not able to repay anymore as the principle is intact - she has got into debt trap.

Now if she stops paying interest, that person will write any amount/date and deposit the cheque to file a cheque bouse case.

All transactions are in cash.

 

My questions is : What we should do, should we go and block the checque, since that cheque is 5 yrs old, she doesn't know the cheque number.

 

What action he can take against my sister, as he doesn't have any proof of lending any money to her.

He is in possession of blank signed cheque, 5 yrs old.

 

I will really appreciate if you people guide us, because my sis husband feels that she may go behind bars.

 

Thanks in advance

 
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Legal Advisor

1. This money lender has no license  for money lending. There is no written agreement also. File a written police complaint against him alleging that he has not given any receipt for the money your sister has paid him in cash. All that your sister needs an evidence as how she had got the money to pay in cash to him.

 
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Hi rohit, Thanks for the prompt response, he has also landed money a cash, so both the parties does not have any recorded transactions and agreement, My sister has consulted a local lawyer, and he is suggesting, that he will draft a legal notice and send it to that guy, saying we have already paid and there is no balance left, and if you use that cheque we will take legal action against you. Is this a correct step moving forward, my sis has still not told the lender that we are going to stop all payments. Thank you once again.
 
Reply   
 

Hello Deepak,

 

I can help you in these matter, but i am not able to describe the suggesstions with full extent here.

So if possible either call me on +919765879695 or give me your mobile number I will call you and brief you about.

Theres nothing to worry in your case according to me, its quite eassy to get out of it, with lesser efforts.

 

 
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