• Personal Loan Default

My wife had taken a personal loan and paid 31 EMI and could not pay further, before marraige when she was working. now she is unemployed and could not make this repayment. Now,   recovery people are calling and harassing her. we are in the joint family we cannot pay this due on behalf of her and also we are not financially sound to settle this due.

recently somebody said, they are calling from Police Station and threatening and abusing a lot.

Could you please advice, how do we come out from this issue.
Asked 2 years ago in Civil Law from Bangalore, Karnataka
1) dont bow down to threats . if recovery agents are harassing you wife record the threats 

2) send letter to bank MD pointing out threats received from agents . 

3) if no action is taken by bank lodge police complaint against bank , recovery agents . 

4) at most bank can file summary suit to recover its dues . 

5) if any one from police station calls up ask their name , designation . inform them that it is a civil dispute   and not to call up again or you will lodge complaint with police commissioner against said officer
Ajay Sethi
Advocate, Mumbai
23206 Answers
1218 Consultations
5.0 on 5.0
Dear client,

1.contact concerned bank/ financial organisation from where ur wife took loan and settle case with them amicably.

2.try to get the names of persons who are abusing  you on phone and then lodge police complaint against them asap.  

3.mostly these persons are agents of bank/financial organisation who hire them to harass customers in order to get loan amount back.

4.request bank/financial organisation officials to grant more time to you to pay remaining EMIS.
R.K. Nanda
Advocate, New Delhi
457 Answers
0 Consultations
3.8 on 5.0
You can lodge a complaint to magistrate and higher police authoritiesfor threatening and harassment.issue a legal notice to the bank for threatening and harassment.if needed contact me will send you the firmat
Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultations
3.5 on 5.0
Banks does not prefer to file a recovery suit for personal loan matters for its lengthy process of laws.Lodge a complaint and file a criminal case against the representative of the bank in Judicial Magistrate Court.
Minansu Bhadra
Advocate, Kolkata
266 Answers
23 Consultations
4.8 on 5.0
Hello,
Although your wife owes the amont she availed as loan no one has the right to threaten,abuse and harass the debtor.There are clear directives from various High Courts demanding restraints from financial institutions.
The calls are unlikely from the Police.It would be recovery agents pretending to be so. You can certainly file a complaint with the police against such abuse and threats.Quite often this would be the work of external agencies contracted by the bank.
What you can do is to approach the bank's recovery department and request a longer period for repayment as your wife is currently unemployed.
S J Mathew
Advocate, Mumbai
1950 Answers
65 Consultations
5.0 on 5.0
Hi, it is a fact that your wife has taken the loan and your wife is unable to paid the remaining installment........ it is better contact the bank and request the manager to sum time so that your wife is will pay the remaining amount...... it is your wife duty to pay the amount she can't escape for any other reason.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
4.3 on 5.0
1. Your wife has taken loan and she has to repay it with agreed interest,

2. If she refuses or failes to rapay, Bank has the right to realise the outstanding WITH DUE PROCESS OF LAW,

3. Bank can not try to recover the outstanding forcibly without due process of law,

4. This is a civil case and the role of police comes only when there is an execution petition to execute some recovery order and against  the said execution petition, the Court passes order of arrest and attachment of property,

5. Record all the phone calls threatening her for not  paying her debt, by recovery agents,

6. Send a complaint to Bank's ombudsman under copy to the Chairman of the Bank,

7. Lodtge a police complaint under copy to the S.P.
Krishna Kishore Ganguly
Advocate, Kolkata
12104 Answers
230 Consultations
5.0 on 5.0
If your wife has taken a loan then she is liable to repay the amount along with the interest. If she refuse to then bank can take legal action against her by filing a civil suit.
However, bank cannot recover the amount by force, so we suggest you to file a written complaint in the nearest police station for threatening and harassment.
Sudershani Ray
Advocate, New Delhi
192 Answers
25 Consultations
4.9 on 5.0
1. Supreme Court has time and again frowned on the practice of banks to send recovery agents to harass the debtor. It has directed the police all over the country to register cases against such goons masquerading as recovery agents and also bank officials who sanction sending these goons and prosecute them if a complaint is filed by any one against them. So do not bow down to these tactics. Your wife should file a police complaint if some one calls her again and hurles abuses at her. The recovery agents and the bank official who allowed the use of recovery agents can be arrested. 

2. It is not possible to believe that police could have called your wife. The individual who called her surely lied that he is a cop. Police has nothing to do with the recovery of bank's money. It has no place in the process of recovery unless and until an order has been passed for the attachment of your wife's property or a warrant of arrest has been issued against her. The next time your wife receives a call and the caller claims to be a policeman she should ask him his name and designation and the police station where he is posted. Let her then go to the concerned police station and ascertain if any cop by that name is posted therein. If the caller turns out to be a real policeman then file a complaint against him addressed to the Police Commissioner.

3. If the bank loan has not been repaid then the legal remedy available to the bank is to initiate recovery proceedings against your wife by filing a lawsuit for recovery of money. It has to adhere to the process of law.
Ashish Davessar
Advocate, Jaipur
18096 Answers
448 Consultations
5.0 on 5.0
Dear Querist
File a complaint before Banking Ombudsman against the bank and agency. or file a police complaint against them.
Nadeem Qureshi
Advocate, New Delhi
3523 Answers
130 Consultations
4.9 on 5.0

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