Legal Question in Credit and Debt Law in India

I have a personal loan with citibank which I have been paying off promptly from April 2006 till August 2008. In August 2008, all of a sudden, my bank account from which I had been getting my emi's taken, went into a negative balance of Rs. 70,000. On calling the bank, I was informed that this was due to my personal loan. I e-mailed citibank for 3 months after this, but there was no response. I finally dropped it and decided to bring my bank account to a positive balance bit by bit. I lost my job in January 2009. In march 2009, one of my friends told me she was receiveing calls from citibank stating that my loan was outstanding. I contacted citibank and was shocked to know that my loan was still outstanding. I informed the lady to whom i spoke about the negative balance, but she refused to listen and told me to pay up. In the month of May, I found out that citibank had got my friend's contact number by breaking into my bank account and looking at my transactions. So I contacted citibank and I told them that I had enough and asked them what was the minimum amount to settle accounts. They told me I had to pay them Rs. 48,064 in two instalments. I paid up Rs. 24, 032 at the end of June and the other instalment was scheduled for end of July. However, I was not able to arrange for the funds needed to pay up so I asked them for more time. I started getting mails from them with ultimatums to pay up. And now I've received a mail from then stating that I need to pay them Rs. 48,603 ( I have no clue how that amount came up) by the 20th of this month, failing which a case has already been filed with the lok adalat. I havent received any legal notice for this and I really dont know what to do. I don't have a job right now, and I dont have the necessary finance to even approach a lawyer to sort this out since they charge a hefty fee to clear this. I have filed a request for my PF to be credited into my account on March 17th and I am still waiting for this. Is there any way I can get citibank to give me some more time? In this time of recession, things are really desperate and the only way out of the pressure they are giving me seems to be not to live anymore. I have already borrowed the inital amount of Rs. 24,032 from a friend who had lost his job and I need to pay him back too. Please advise.


Asked on 8/17/09, 10:48 am

2 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

It has been noticed in a few other cases also that banking practice of banks are not always ethical and they do keep adding charges even in violation of law.

You may make your own calculations and find out if the bank has added any extra charges. if that be so, you may send them a notice of demand; and if they do not come to terms, you may file a complaint with the local consumer forum without involving any lawyer.

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Answered on 8/17/09, 1:24 pm
Pawan Jangid

You have not clearly mentioned.... whether your bank account turned in to negative balance due to debiting your account for EMI or it was any amount greater that your EMI? Also, what was status of your loan account (regular or delinquent) at the time of debiting your bank account. further, the bank account was also with city or some other bank? These issues are of vital importance before framing a case against your bank/ banks.

However, after serving a notice for demand of justice to your banker, you may directly approach Consumer Forum at your Area (without help of any lawyer). you may submit a written complaint enclosing the copy of legal notice and may ask the procedural formalities to the court clerk while preferring the complaint.

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Answered on 8/18/09, 1:25 am


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