Loan/Card settlement
Querist :
Anonymous
(Querist) 01 March 2010
This query is : Resolved
Dear Sir
I m writing this on behalf of my NRI friend in UAE(DUBAI) who become redundant(Terminated due to financial crisis)and also lost his full investment in freehold properties in Dubai. He had taken some bank loan and also credit cards to buy these properties. The banks had charged credit shield with his monthly bill and he paid everything in time till termination of employment. The banks had offered credit shield cover for involuntary loss of employment. He failed to find any new job there and returned to homeland after expiry of his employment visa. He could not sell his property as there was no demand.
Now he is getting threatening phone calls/ house visit from collection agencies saying that the credit shield is not applicable and bank is asking for the entire loan settlement with immediate effect. The bank have started legal action against him in UAE
He is still in search to find any job there and seeking to settle the outstanding once the market is steady to sell his property.
My question is, for the time being what are the legal implication in India for this case, if he stays in India. Is the bank can take legal action against him in India? It is very unfortunate that all these things happened to him and he is one of the victim for economic recession.
kindly advise
Raj Kumar Makkad
(Expert) 02 March 2010
Definitely Bank has legal right to initiate action as provided under rules, however, your friend should request bank officials not to go on that path for some more time till your friend arranges the things as required.
