Lon from the finance company to purchase the vehicle

queryking (Querist) 06 November 2009 This query is : Resolved
Dear most experts,
i have availed the loan from a finace company to purchase a four wheeler about 3 years back, they have taken my singnature to some forms(may be agreemnt), the contensts not disclosed to me, it is not explaned to me, they have taken 36 balnk cheques of my account, i regularly paid the installments(in some month little late than the fixed date), as per my calcutaltion i am due about Rs.40,000/-, but last month they have issued a notice demanding 1)amount outstanding Rs.80,000/- 2) future principal loan Rs.85059/-(What is future principal loan?) 3) Penallty on closure Rs 3,000/- 4) intervening fiance charges Rs.467/-
5) Additianl Finance Charges 43,000/- (what is additinal finance charges?) 6)Cheque return charges 4,500/-(event though few of the cheques are returned as soon after coming to know about the returning of the che cheque i paid the amount throgh the DD and i have the xerox copies of the DD),i ahve not replied to the demand notice.

few days back they sent a notice stating that there is a dispute between me and the fainace company hence they are referring the matter to sole arbitrator at Tamil nadu( it is not my native state) the transaction took place in my state. what course of action i have to take?

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Sudharsan.m (Expert) 06 November 2009
Dont worry apprach a lawyer first because the terms and conditions of the agreement we may not know, unless otherwise we know the content of the agreement it is not possible to come to conclusions and more over you have said regarding the arbitration matter it is no way connected with your case.

Raj Kumar Makkad (Expert) 06 November 2009
It is better to take part in arbitration proceedings in Tamilnadu by engaging a local competent lawyer who shall minutely observe each and every document submitted by company connected with your dues and deposits and all agreements signed/agreed by you instead of making any battle herein. You might have agreed on the term of arbitration to be fixed by the company at their discretion.

bhupender sharma (Expert) 07 November 2009
Mr. King u ought to have replied the legal notice otherwise it would be presumed that u have accepted the contents of the notice to be true and therefore u have not replied. u better take part in the arbitration proceedings. More so they are the additional charges which have been added to your balance repayment.