Hello,
You can try and send them a legal notice to resolve the issue amicable. and please tell me if a cases has been instituted against you or not, and also tell me how have you made the conversation with the bank (through mail or post)
Regards
Staff overdraft not repaid
Dear Sir, I was employed in a bank and availed staff overdraft for 100000 which was being deducted from my salary every month. I had left the job and was jobless for some time and could not repay the loan.The bank later contacted me and asked me to repay the loan along with overdue interest. I had asked them to deduct my PF and said will pay the balance after deducting my PF they said i need to pay 75000/- for which i initially paid 25000/- then they said i need to pay the full amount with interest. Now they have come back to me stating that i need to pay 200000 including interest failing which they will file a suit against me. I am prepared to pay the outstanding principal and not the interest in one go. Kindly advise?. My wife signed as the guarantor for this loan.
Asked 8 years ago in Civil Law
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6 Answers
Dear Sir, Thanks for your reply. They have not yet initiated case against me. I had spoken to them over the phone. I told them i will personally come and meet them . They are asking me to sign a AOL- Admission of liability which i refused to sign as i said i am willing to settle the issue and repay the principal.Kindly advise me sir
Asked 8 years ago
1) what were terms and conditions of grant of loan
2) if you have failed to repay loan bank can sue you to recover outstanding dues with interest
3) ask for detailed statement of account as to how figure of Rs 2 lakhs has been arrived at
Please do not sign the AOL, try and talk mutually and settle the issue, otherwise send them a legal notice with regards to the same.
Reagrds
Send them a reply to their notice. Tell them that you definitely intend to pay back the loan but you'll require some window. Also, it is a Legal principle that the interest or penal interest, cannot exceed the principal sum. Thus, you can always take shelter to this legal principle. Wait and see what do they need next. You always have the option to approach the High Court against any of the bank's arbitrary action, incase this is a public sector bank.
The rules regarding loan and it's repayment are not made to any individual's convenience.
If you don't repay then the guarantors will be served with demand notice and also they may attach the property of guarantors.
For the present you don't sign any paper or documents to them
You can sit and talk to the authorities to amicably solve this problem.