Indian Consumer (Service) 12 January 2012

Deletion of joint holder's name from car loan

Hi,

I am in urgent need of your HELP, please guide me and HELP me in getting out from this mess created by my brother.

My brother (First Applicant) and myself (Co-Applicant) have taken a car loan jointly of 11lacs in year 2007 for 5years whose emi was going from our joint account but basically i was only paying the emis for few months after that he alongwith his girlfriend did some fraud on my credit card amounting to 5lacs which he denied to accept so i threw him out of the home and stopped paying his car emi also ... The car is registered in his name is in his possession i have never in my life used that car. Now after that i have no contact with him nor is aware of his whereabouts untill in 2011 when i called for my CIBIL REPORT as i intend to take a housing loan i got the shock of my life that because of that CAR LOAN my credit score got effected as my brother has not paid the emis rigtht from 2010 onwards, so i approached the bank and told all my story to the bank official and requested him to delete my name from the car loan submit a written applicaiton of the story but the bank said that they cant delete the name of the joint holder as its a contract, then i gave a written letter to the bank asking them to take the possession of the car sell the car and adjust their dues against the proceeds of the car of which they told me that they are not into selling business.

I seek your wise advise as to what and how should i get my name removed from that CAR LOAN, this is a kind of harrassment to me by my brother because he knows that if he doesnt pay i will definitely pay to protect myself as earlier i did my paying 5lacs to credit cards.

PLEASE PLEASE HELP ME

Thanks & Regards,

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2 Replies

sanjay kumar (BE/ LLM in Corporate Laws) 12 January 2012

Sorry to say that you have a weak case. The Bank loan is indeed a contract between you & your brother on one part and the Bank on the other. The contract can only be modified with the mutual consent of all the parties involved and not a part of the parties. The only legal remedy available to you is criminal action against your brother for cheating & fraud for which a criminal Lawyer will be more helpful to you. The worse part is that since you are a co-applicant, the responsibility of repaying the loan to the bank lies jointly as well as severally with you and your brother. That is, if your brother doesnt pay-up, then you have to pay.

RAJU O.F., (Advocate) 14 January 2012

You cannot escape the liability of the loan as co-borrower. You may close the loan to save your credit rating and then find ways to collect the money from your brother who is in effect owning the car.