Hi, My wife took a personal loan from a private financer due to personal obligations she wasn't able to repay on time and missed on few EMI now the private financer's employee is sending messaging be ready to go to the jail if not paid immediately ive told him we need sometime to repay outstanding dues he's threatening to send notice to office where my wife works in HR and also send legal notice to us for this non repayment. And saying it's a criminal offence. Please advise thanks
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Has your wife issued post dated cheques ?
2) was my loan agreement entered into by your wife with the financier ?
3) if cheques are dishonoured then complaint can be filed against your wife under section 138 read with section 141 of NI act
4) in case notice is issued engage a local lawyer and reply to legal notice . Contest the criminal complaint filed
5) in case any summary suit is filed contest the suit proceedings
Hi Ajay, Thanks for the prompt response these people are local money lenders my wife did gave them checks but none of them bounced since as per them check are over they are also asking for more checks from my wife. My wife did sign a booklet made by this private financer. No stamp paper document was signed by her.
Don't give any more cheques
2) obtain copy of booklet signed by your wife
3) check whether they have a money lender license or not
4) contact a local lawyer
Hi, They can't harass your wife for the money if they want to recover the amount then they have to follow the due process of the law. It is better you can lodge police complaint against them.
personal loan and its recovery is purely civil in nature. If any cheuqes given to the financer and in case if the said cheque was got dishonored then the financers has to issued mandatory notice as required under section 138 of negotiable instruments act and then only the proceedings will e initiated. First of all the financer doing fiancé business and lending personal loan, colleting interest without money leading license is an offence. And sending messages and threatening that to a lady is a serious offence. As you seek if the financer provided some time for repayment it is well and good as other you can make a complaint before concerned local police and the financer and his employees for doing illegal finance business, colleting interest, sending messages and threating etc.,
1. Failure to repay the loan is actionable through a civil suit for recovery. The maximum which the lender can do is file a civil suit to recover the money, which your wife can contest. No jail term awaits her for default in repayment of loan.
2. Unless a cheque issued by your wife has bounced she cannot be criminally prosecuted.
Dear Concerned,
Such personal loans are unsecured loans and someone threatening to recover this loan forcefully may himself be jailed. Hence do not worry if your loan too is an unsecured loan.
No this would not count a criminal offence until there is a cheating angle, hence need not to worry on that front as well. It is suggested that you may like to speak with us on the subject in detail - hence kindly feel free to contact.
Best of Luck.
The private financier canot issue threats like this that she has to go to jail if she is not repaying the loan, it is for the court to decide about the next course in this regard.
If there is a notice served, you may give a strong reply notice mentioning your disgust to the way he has sent the notice and request him to recover the amount by due process of law instead of giving such threats.
If he is adopting any illegal methods to recovery the loan, you may lodge a police complaint agaisnt this becasue he cannot adopt such methods other than due process of law.
Q. private financer's employee is sending messaging be ready to go to the jail.
A. this notice is illegal because the supreme court has decided that borrower cannot be jailed only for not repaying some emi. you should file a writ before the high court for taking time for repayment or extension of loan duration or payment is installments.
