• Personal loan default

My elder brother is an IT professional who worked in Bangalore, currently he is unemployed for last 1 year for unknown reason and we don't know where he is. When he was working, he took a personal loan from ICICI bank and also having some credit cards which is over due for payment.

He had updated my mobile number as his alternate contact and am receiving lot of calls from bank for payment. 

Am married, my father is a pensioner and mother is a government employee. Does bank have rights to demand me or my parents to pay back the money. Any legal actions possible on us ?

Please advise.
Asked 7 years ago in Civil Law

2 answers received in 10 minutes.

Lawyers are available now to answer your questions.

22 Answers

you and your parents are not liable to repay the personal loan and credit card dues of your brother

2) bank has to sue your brother to recover the outstanding loan amount

Ajay Sethi
Advocate, Mumbai
96829 Answers
7812 Consultations

As long as you were not a guarantor for this personal loan taken by your brother, you are not responsible to clear your brother's debt.

Just because your brother has updated your number as his alternate mobile number, this liability does not shifts upon you.

If the bank and it's agents are harassing you and the same is becoming unbearable, report this matter to the Police.

Vibhanshu Srivastava
Advocate, Lucknow
9659 Answers
307 Consultations

Until and unless you stood surety/guarantor for him, the bank cannot take any action against you and your parents legally. However, they can ask for the whereabouts of your brother. Get your number blocked and taken another number.

Dalip Singh
Advocate, New Delhi
1092 Answers
36 Consultations

1) legal notice would be addressed to your brother

2) bank will file summary suit to recover its dues

3) if any cheques issued file complaint under section 138 NI on account of dishonour of cheques

4) bank may also fie cheating case against your brother

Ajay Sethi
Advocate, Mumbai
96829 Answers
7812 Consultations

To whom are these legal notices addressed?

Yes, you should lodge a missing report of your brother.

Vibhanshu Srivastava
Advocate, Lucknow
9659 Answers
307 Consultations

Sir,

Are the legal notices being addressed in your name. Did you sign any documents either as for loan or guarantor.

If the answers are no, then you don't have to worry much on it.

Anand Shukla
Advocate, New Delhi
666 Answers
14 Consultations

Dear Clients,

Unless u agreed to be guarantor for him , no liability of urs,

Next time they call u , warn them straight, Issue legal notice or file direct complain for mental harassment /criminal intimidation.

Yogendra Singh Rajawat
Advocate, Jaipur
22989 Answers
31 Consultations

Personal Loan liabilities does not impact on you and your parent even after provided phone number. Generally bank does not prefer to file any suit to recover of personal loan and credit card matters, because it is lengthy process of laws. Send answer through a lawyer in response to their legal notice to inform the bank that your brother does not reside here. If you face any problem then lodge a complaint to the police and Banking Ombudsman.

Minansu Bhadra
Advocate, Kolkata
444 Answers
31 Consultations

Yes bank can recover the loans from you and parents, they have power to go to debt recovery tribunal directly. I dont believe that bank will file fir or something, first they will send you notice on your address if they have it, after that they may go directly go to court. To avoid if bank dont have your address you may change your number

Varnika Singh
Advocate, New Delhi
327 Answers
2 Consultations

Onve banks filw the case you will receive the notice from court, your brother may have made you a guarantor, if he did so, you will have the legal obligation to fulfil his loan

Varnika Singh
Advocate, New Delhi
327 Answers
2 Consultations

It is civil recovery case. Bank will file recovery case against your brother only. Absconding is when FIR is lodged for fraud and cheating.

Dalip Singh
Advocate, New Delhi
1092 Answers
36 Consultations

Hi, only your brother is legally entitled to pay the outstanding amount . The bank can only procced with filing a civil suit of recovery that too against your brother .. No criminal FIR can be filed in it , as bank only have civil remedy ..

Hemant Chaudhary
Advocate, Gurgaon
4630 Answers
67 Consultations

They cannot claim or don't have right to claim the dept of your brother unless you signed in the loan agreement as a guarantor. At same time they cannot disturbed you or your parents and they cannot file any case against you. If they continuously torturing you regarding loan file a civil suit for not to disturbing you. You will get a better relief. If u need any further assistance contact me here.

Selva Perumal
Advocate, Chennai
339 Answers
36 Consultations

Hello,

1) Neither you not your parents can be held liable for the unsecured loan and the credit card debts your brother had incurred. The bank does not have the option to attach his property either to recover the defaulting loan.

2) For harassment to you and your family you can get a police complaint lodged, an FIR preferably.

3) Get the legal notices replied with the help of a lawyer stating you are not liable and shall be constrained to initiate legal steps against the bank for inappropriate legal action initiated.

S J Mathew
Advocate, Mumbai
3595 Answers
175 Consultations

Not at all. If you are not the gurantor then the bank can not recover the same from you

Anilesh Tewari
Advocate, New Delhi
18090 Answers
377 Consultations

File a reply to the legal notice that you are not related to the thing and therefore no further notice be sent to you.

Criminal case can not be filed, arbitration will be invoked.

Regards

Anilesh Tewari
Advocate, New Delhi
18090 Answers
377 Consultations

Firstly, try to understand that your brother has taken loan not you.

Secondly, what bank is doing is totally wrong as there is a law that even if you have given the security then also bank can't file a criminal case against you.

Thirdly, they can file for suit of recovery which is civil in nature, and can make you a party only as your number has been mentioned and brother of him also.

Lastly, try to understand one thing that now bank has the authority to seal his property if any but for sure, would not recover from you.

Sanjay Baniwal
Advocate, South Delhi
5474 Answers
13 Consultations

1. Recovery agents are calling the numbers updated as per the records and sending legal notices as the address updated.

2. Reply to the legal notices through your lawyer.

3. File harassment complaint against the recovery agents to stop making calls.

4. If the harassment calls are made from bangalore bound numbers then you may get back to me to make the complaint.

Niranjan
Advocate, Bangalore
844 Answers
9 Consultations

No legal action possible against you or your parents

Police case may file against him but not against you

P V Reddy
Advocate, Hyderabad
422 Answers
3 Consultations

The bank has no rights to demand the repayment of loan on his behalf if you have not stood guarantee to your brother for this purpose.

If the bank is sending you notice or making calls in this regard, you may sent a notice to the bank notifying that you are not liable for this loan repayment and you may not be disturbed in future in this regard failing which you will be compelled to initiate appropriate legal action for relief and remedy.

T Kalaiselvan
Advocate, Vellore
87030 Answers
2337 Consultations

Am receiving lot of legal notices from banks. What will be the next step by banks to recover the loan/ credit card amounts from my brother ? For absconding, Police case will be filed by banks ?

'The bank cannot approach police for loan default, it has to follow the due process of law by filing a money recovery suit against him.

It cannot force you to pay the loan, you can send a legal notice to the bank against this illegal act.

T Kalaiselvan
Advocate, Vellore
87030 Answers
2337 Consultations

I JUST WANT TO KNOW WHETHER U HAVE SIGNED FOR SECURITY FOR THE SAID LOAN ? IF YOU HAVE SIGNED YOUR LEGALLY RESPONSIBLE. IF NOT NO ONE CAN ARREST YOU. SORRY TO MENTION THIS IF YOUR BROTHER WAS DECEASED MEANS THE SAID LOAN SHOULD BE PAID BY THEIR LEGAL HEIRS

Shiva Bharathy
Advocate, Chennai
102 Answers
1 Consultation

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer