MK Mishra (AM) 11 January 2012

Help regarding personal loan

Sir / Madam,

I had taken a personal loan of RS. 200000 (2 Lakhs) from a Private Bank in Aug 2008. The repayment period was 4 years (per month basis). I paid 3 month installments (Upto Nov 2008 about 16000 in total). Then due to the Global financial crisis, I lost my job and could not pay interest for 6/7 months. During that time I contacted the Bank several times over phone and meeting to delay the payments. But they did not listen and filed a civil suit against me. It was a terrible mental strain. Then when I contacted the bank regarding the same, the people threatened and abused me. So in fear, I discontnued my mobile number and took a new one and also changed my address ( as I was staying on rent). The notices used to come to the previous rented house for quite a long time, but I could not receive them as I have changed the city.

When I got a new job at a new location, my salary account was with that bank only. Then the bank freezed about 2 month salary (about Rs.75000) without any notice. Then suddenly I started getting abusive and threating calls from the recovery agents. I contacted a lawer and as per him, now lawsuit is not valid against me as the recovery period of three years have expired. Is it true??? I am not sure.. And the lawer also says that there is no need to repay the loan as the case is void now. Please guide

Also the recovery agents are saying that , If I do not repay the loan along with interest at one time, they will send legal / court letters to office addresses and insult me in my office. This has brought me severe mental stress. This may sound funny, but I am in severe mental pressure. Please guide, what should be done and legally if there is no payment need to be done to the bank

Thanking you in avance.......

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1 Replies

Kumar Doab (FIN) 15 January 2012

You have taken the good money of the bank and has not repayed the debt. You do not seem to be interested in repaying the balance amount.

The bank shall first exhaust the options under their process of recovery.

The abusive recovery process is something which is preturbing. Even after courts, RBi has intervened banks do not hesitate to follow the same methods as implied by Sahukar (moneylender) and their (musclemen).

You are within your rights to lodge a police complaint as ap for the threats, abuses. You have a lawyer and your lawyer can also advice you on how to lodge a complaint with Police Commissioner and SHO. Do not forget to mention the phone numbers of recovery agencies and name and address of BM of the bank and obtain complaint number on copy of your complaint. If anyone comes to intimidate you at any place you can hand them over to police. Keep some witness with you. If possible record all threatening calls.

You need to prepared to handle the bank.

Limitation: Three years from the date of loan/any acknowledgement of debt. It is believed you have not given any undated/postdated cheques to bank and if you have given :any dated cheque upto the date of death of the drawer.

Please clarify with your lawyer :

-as any repayment made into the loan account by the borrower, a correspondence containing acknowledgement of debt, balance conirmation letter, have got the effect of extending limitation by three years from the date of such transaction or document.

-Part of the debt: When a debt is agreed to be repaid in instalments, each instalment becomes a sub-debt, from the respective due date and time for limitation starts running from such date for each sub-debt. Therefore even if overall debt is apparently lapsed by limitation, such instalment or interest debited but not repaid suffers limitation after three years from such date.

If your lawyer agrees you may think over and agree for settlement with bank.

You may close your salary a/c at once.

Build rapport with your line management and HR as at this momment you shall need their support. No recovery agent can enter office premises without permission. You have to prove the offensive approach of the bank and its recovery agencies.

Look for another job as ap.