Upgrad LLM


Bank has seized my account as I was been a guarantor for my friend who became an debtor. I've cash on my account which I'm in need now. Your assistance would be helpful.
Retired Manager

  1. Having given your guarantee to your friend's loan, you are bound to make the payment of the loan, when your friend fails to pay. You cannot escape the liability.
  2. Whether Bank has given you notice to you calling upon you to make payment of the overdue instalments of your friend's loan which he did not pay? or It merely blocked your account?
  3. It is advisable to go to your friend and demand him to clear his dues and impress upon him that your account is blocked only because his default in paying bank EMIs
  4. You may also go to the bank branch and find out the actual position. 

Retired employee.

A banker is having the right of general lien and can exercise such right to keep the amount of balance available in the account of such guarantor and borrower.   The presumption is that you have already been notified about the default status account of your friend's account. Contact the local advocate and negotiate with the bank and at the same time bring pressures on borrower through common friends.


I concur the opinion and advise of experts.


Yes, the guaranteer is bound bu his guarantee. But the this could be enforced only through the due process of law; the bank cannot take law into their hands. Please try to ascertain the facts of the steps taken by the bank before 'seizing the account'. You canbring the matters to the notice of the Banking Ombudsman if the Bank is at fault.




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