Recently we received a lawyer notice for an unpaid installment for an equipment loan taken in 2008. The letter claimed that one of the installment of Rs.1700 was not paid in 2012 - and to repay the outstanding amount along with the interest amount for a total of Rs 300000. This is the first time we received this notice and it claims that there were other attempts made to contact us for the repayment - which is not true. The loan was disbursed only after post dated cheques for all the installment amounts were provided to the finance firm through their agents. The bank account contained adequate funding all through the time installments were due. We got the latest statements from the bank from 2012 and found that the last installment was not withdrawn from the account.
In light of the above scenario - what should be next steps in responding to the notice?
Something to consider :
- no attempt to contact us since 2012 until now - yet the letter claims otherwise
- all cheques were provided at the time of loan application, and the bank account was fully funded during the time the payments were due
- we have proof of the bank account being active and containing enough funding through the last installment
There was no bad intent on our part for the repayment of the loan - but it looks like incompetence of the finance firm in securing all the cheques given during loan approval - and further failing to make a sincere attempt at contacting us (directly or through agent) for the missing cheque / payment in 2012 - and holding us accountable for the huge repayment amount is strange and unfair, not sure if it it is legal either.
Requesting some advice this, thanks in advance!!
