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Chitty   10 April 2020

Guarantor for personal loan

I signed as Guarantor for the personal loan of my friend three years back. He paid the EMI regularly for one year until he is in job. He lost his job and did not pay his EMI thereafter for about last two years. We (other guarantor and bank manager) are in regular touch with my friend and motivated him to repay his loan. In the mean time, my savings account in that bank has been blocked for this non payment. Bank still did not take any legal action against my friend but blocked my account. But now he got the job and started the repayment of his loan. But bank still not unblocked my account. What is legal possibilities to this? Since my friend is not wilful defaulter, Whether bank action against me is legal ? Can i approach consumer court for this?


 3 Replies

N. Sivaprakash, Chennai 984099 (Advocate)     10 April 2020

It"s not legal. You give a letter to the Bank to unblock your account. Still if no action you can go to the Consumer Court. You can also give complaint to the Reserve Bank and also to the Ombudsman.

P. Venu (Advocate)     11 April 2020

Yes, the Bank's action is improper. you may represent snd, if necessary, take up the matter with the higher authorities. You may also take up the issue with the Banking Ombudsman.

Sudhir Kumar, Advocate (Advocate)     15 April 2020

Banking ombudsman is faster remedy.

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