Legal Question in Banking Law in India
Personal Loan - non-payment
Dear Sir
I have a personal loan with a private bank in India (Chennai). unfortunately I lost my job. I can't pay my EMI now. I requested the bank for a EMI holiday for 3 months, but they did not agree to it. They have undated cheques of mine. They can anytime desposit and bounce my cheque. In this scenario, what is the remedy for me as per Law. Doesn't the bank have a human face to a problem? Pls help me..!
4 Answers from Attorneys
Re: Personal Loan - non-payment
First write a letter to the Bank concerned explaining your position. Send notices to your Bank on which you have issued blank cheques mentioning the numbers on the cheques, not to entertain the same as they have been signed in blank and could be misused. Write to the chief Executive of the Bank to provide for some relief in your present predicament and requesting him to order the concerned people not to deposit the blank cheques signed by you with words and figures which may be filled up by them. If u don't get any relief prefer complaint to Banking Ombudsman of Reserve Bank of India. In any case, please consult a lawyer privately and proceed.
Re: Personal Loan - non-payment
You may contact the Bank with the registered Post Letters explaining the situation. Send notices to the Bank on which you have issued the blank cheques.
You may contact a local lawyer as soon as possible.
Re: Personal Loan - non-payment
Firstly, you should send a letter through Registered post to the bank, explaining your position. In that letter intimate the bank that the cheque numbers .......... all undated shall not be presented for payment as you are not in a position to honour your cheques. (The bank normally do not heed to such requests and they will try to consolidate the whole outstanding amount into one and try to get the cheque dishonoured so as to enable them to file a cheque bounce case against you). Secondly, after giving them the due notice, send a 'STOP PAYMENT' LETTER to your Branch of Bank from where you have issued the cheque (mark a copy to your Loan Bank also). If this does not work-out, then go to Banking Ombudsman and lodge a complaint explaining your position. Give me the feed-back, if you can, please.
Re: Personal Loan - non-payment
You may contact the superior staff of bank with a letter stating your problem and asking for time.
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