Unable to pay debt-urgent soln req
Gopi
(Querist) 19 June 2013
This query is : Resolved
Hi,
PLease Suggest the Solution for my Friends Father.
Because of some Circumstances My friends father took LARGE AMOUNT money from individuals at higher intrests rates i.e., 5rs/month. he knows that intrest is high but he does not any choice. He paid intrests for Years. (Taking money from others and paying.) And those persons used him very well so that they will get atleast 50% intrest rate per annum if they give money to him.,
Now he is not able to pay the money as his salary is not enough to repay them.
ANd recently they are forcing, scolding & giving warnings to pay acutual sum alog with intrest.
Once we cross check how much he took and how much he paid through intrest allover years, it was found that he almost (somecases more also) paid the acual amount with nominal intrest ( intrest charged by banks).
is there any way to get him out from this situation.
please note that they earned money only by giving money to my friends father. they(who used My friends father) dont have any employment to proove their income from intrests..(they wont pay any TAX)
Could you please Help HIm out.and what are the legal procedures to follow.
He can Repay in installments if the sum payble is justified by court.
recently Heard about INABILITY TO PAY THE DEBT. what is it.? IS it applicable to individual.
Could you Please Suggest the Solutions ASAP.
ADDITIONASL DETAILS:
Party doesn't have any license to lend money.
there is no such law in andhrapradesh i guess.
all the loan money is not documented. only apart of it(15%) is documented.
he is paying past 5 years or so.
this amount taken and paid the interest he doesnt have any documents to support. may be he has on piece of paper for some payments...
But he is threatening to kill / using bad words infront of my friends mother.M
MY friend father is now in deep depression.please suggest the sol so that he can get HOPE ON LIFE.
Sudhir Kumar, Advocate
(Expert) 20 June 2013
please check from RBI whether such rate of interests is enforceable and whether other party is having money lender license.
K.K.Ganguly
(Expert) 21 June 2013
Yes. There is a way to come out of this situation.
Has the lender got the license from appropriate authority for lending money by collecting interest? In West Bengal there is an act called Money Lending Act which has to be followed while lending money. Check if there is any such Act in your State.
Send him a legal notice stating that your friend's father has already repaid the loan with interest at rates as postulated in RBI Guidelines & there is no arrear left for the said loan.
Hope he has all repayment receipts.
prabhakar singh
(Expert) 21 June 2013
Is the loan money documented?
Are the lenders registered with DM and have licence of lending?.
In each state it is a regulated business.
Moreover from facts put forward it appears lenders can not go for any suit if debtor defaults.Any torching by them of debtor would amount to an offence for which FIR with police could be lodged.
Gopi
(Querist) 22 June 2013
ADDITIONASL DETAILS:
Party doesn't have any license to lend money.
there is no such law in andhrapradesh i guess.
all the loan money is not documented. only apart of it(15%) is documented.
he is paying past 5 years or so.
this amount taken and paid the interest he doesnt have any documents to support. may be he has on piece of paper for some payments...
But he is threatening to kill / using bad words infront of my friends mother.M
MY friend father is now in deep depression.please suggest the sol so that he can get HOPE ON LIFE.
K.K.Ganguly
(Expert) 22 June 2013
1. If any body is threatening your friend's father, lodge a police complaint accordingly,
2. If they have already repaid the principal amount alongwith interest at Bank rate, stop further paying & tell the lender that charging interest, inter alia, at rates higher than that prescribed by the RBI is illegal.
Raj Kumar Makkad
(Expert) 22 June 2013
No more to add as you have rightly been advised by Ld. experts.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 22 June 2013
Andhra Pradesh has most strict and stringent law against the money lenders but only some NGO can only help you.
Sudhir Kumar, Advocate
(Expert) 07 September 2013
a streotype story
such loan are given by outlaws and taken by persons intending to spend beyond means. higher rate of interest is there due to higher chance of sinkage of loan being illegal.
there is no legal way of recovery
