Eight year old personal loan
Parveen Jadhav
(Querist) 15 July 2015
This query is : Resolved
This is regarding the outstanding personal loan dues
Situation:-
We had taken a personal loan approximately eight years back from a bank. We defaulted on the loan due to personal reasons. Later on after negotiations, a cash payment was made and the loan was paid off. However, after that, we've shifted house five times. Now after approximately 8-20 years another bank has sent a notice saying that it has taken over the loan and payment is pending. An ordinary notice sent by the bank has been received ( but not by the borrower.) No notice was sent over the ten years and we were very sure that all payments were cleared.
What should we do?
I came to know about the 3 years Statute of Limitation of debt collection from other queries posted here but some questions do remain -
Queries:-
Using the limitation period of 3 years should he ignore the notice or
i. Should we hire a lawyer and send a notice to the bank before they start harassing with phone calls and collection agents? Most of the steps listed in this forum are made after agents start harassing. I want to know what can be done to stop the bank before they start this nuisance practices and harassment.
ii. We do not have any details regarding the loan but we are sure that the payment was made. How do we assert this?
iii. What are the common legal steps used by the bank to harass customers? Like a criminal case etc.
iv. Should I just sit back and wait to see what happens?
I welcome a reply from all experts. Mumbai-based lawyers please indicate this as I will like to hire a good affordable lawyer to deal with this situation on a proactive basis.
Thank you in advance
Chanchal Nag Chowdhury
(Expert) 15 July 2015
U have stated that the loan has been paid off. So, what remains? Moreover,the claim, if any, is barred by limitation.
Its your choice to ignore/sit back,but NEVER EVER ACKNOWLEDGE ANY PART OF THE DEBT OR PAY A SINGLE RUPEE, EVEN OUT OF DISGUST AS IT WILL OPEN UP THE WHOLE ISSUE ALL OVER AGAIN.
Parveen Jadhav
(Querist) 15 July 2015
Thank you for getting back to me so quickly. I also want to know if the bank can start legal proceedings against me. The loan is time-barred but it will not stop the bank from sending recovery agents. Is that right? If so, how do I handle the agents? Just call the police on them is enough?
Parveen Jadhav
(Querist) 15 July 2015
PS. I have no proof that the loan is paid off.
Rajendra K Goyal
(Expert) 16 July 2015
If the loan is time barred Bank would not start recovery proceedings. If you wish reply the notice through your lawyer.
Parveen Jadhav
(Querist) 16 July 2015
Thank you Mr Goyal for getting back to me. The bank has not yet started recovery proceedings but it has sent a letter through ordinary mail. Does that mean the recovery process has started?
Parveen Jadhav
(Querist) 16 July 2015
I am also now getting a little confused. According to the Statute of Limitation of debt collection, the loan is null but the bank can still send recovery agents to harrass us to pay the money. They can also file a suit to recover money even after I am saying that the money was paid. This does not sound fair at all. Its plain extortion
Khaleel Ahmed Mohammed
(Expert) 16 July 2015
You are advised to send the reply to the received notice with limitation barred loan. For more paid legal guidance, visit www.mkatruelaw.com
SAINATH DEVALLA
(Expert) 17 July 2015
Mr.Praveen,
UR questions subsequently illustrate that they are being asked for knowledge purpose or academic interest only.
U say the loan has been repaid,it will be on record with the bank,then why are U bothering about the limitation period which is not applicable for loan settlements.
If what U have mentioned are true in nature send a legal notice to the new bank,stating the facts.
Parveen Jadhav
(Querist) 17 July 2015
Not at all, I am extremely worried about this situation. There is no knowledge purpose or academic interest. I need to find a way to proceed before this situation gets out of hand and I am asking for advice from experts.
I dont have proof that the loan was paid off. The bank is saying I have not paid, I am saying I have paid.
What should I do? The situation is as simple as that. I dont want to face harrasement from loan agents and I want a solution that will provide maximum results for minimum headache.
SAINATH DEVALLA
(Expert) 17 July 2015
Once the loan is settled by the old bank,the new bank which has taken over does not hold any right over the back log loans.They have a right to recover only unpaid loans.More over as said earlier PL's have time limitation as they are unsecured loans.
Don't hurry to act as it is too early as U have received only an unregistered letter from the new bank.Earlier U must have already faced the wrath of the recovery agents to the maximum extent I presume.In case the recovery team approaches U in future,issue a legal notice to the new bank and to the agency as well.
Parveen Jadhav
(Querist) 17 July 2015
Yes, the thing is we paid the bank and then we moved away. We did not take any paperwork and the loan is now 10-year old. I have no paperwork saying I have paid and I think the bank did not register it as well. Thats the reason why I am saying its extortion. I will essentially be paying again for a loan that I have already closed but have no proof of. Yes, I have heard horror stories about recovery agents and I have no intention of going through that. thank you for your advice. I will wait at present and then issue a legal notice when I am approached.
SAINATH DEVALLA
(Expert) 17 July 2015
If U encounter the agents in future,immediately go to the new bank,refer the matter to the manager.Once they enter UR former address Name and Mobile number that existed at the time of obtaining,UR entire record will be visible.U must have obtained a receipt at least for the cash paid.
Parveen Jadhav
(Querist) 17 July 2015
But I have been advised not to contact the bank and ask about the loan. If I ask about the loan, its known as 'promise to pay' the statue of limitations is cancelled and I have to pay whatever the bank says. I dont have ten-year old banking receipts, or bank details, or anything. I went abroad for two years in this interim period, changed five houses and moved in three different states of Maharashtra, Andhra Pradesh, and Tamil Nadu due to job transfers...I have no way to prove that payments were made.I have no documents and no data. The minute I approach the bank and discuss teh loan with them, I have been told that they record calls and the statue of limitations immediately becomes void and I have to pay what the bank says.
That is the reason why I am asking what to do...I hope you understand my problem now.
Parveen Jadhav
(Querist) 17 July 2015
Could someone please answer this question? Should I contact the bank and ask about details?
If I ask about the loan, its known as 'promise to pay' the statue of limitations is cancelled and I have to pay whatever the bank says, is that right?
SAINATH DEVALLA
(Expert) 17 July 2015
Gentleman,
U have been repeating UR questions.If U do not wish to encounter the recovery agencies in future,go to the bank,show them the letter U have received and get it clarified.The loan account number must have been mentioned in the letter along with the loan details.
