Money lenders keeps harassing
6 months ago
Sir/Ma'am, My mother took a loan of 30000 before lockdown started and is still paying 3000 p.m since 2019. But since we are going through financial issues these days she couldn't pay the last month's EMI on time. My mother nicely requested to giver her sometime as she arranges for the money but the lender keeps cursing at her, uses bad words and even disturbs her at her workplace. As I know my mother has given 144000 till now as we calculate 3000 pm from 2019 to 2023, which is I think is illegal as far as I know. She has also given the actual loan amount which 30000 last month in full but if we have to stop paying the EMI we have to pay 30000 more as per the lender. The lender even has my mother's signed blank cheque. Please help us
A.Dear Client,
Lenders are not legally obliged to settle a debt lowering your outstanding debt, but because they want to protect their bottom line, they may agree to a debt settlement to avoid further financial loss. You can try to negotiate a debt settlement on your own if your pocket permits to repay the entire outstanding at a time for a one-time settlement of dues, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with any fees. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial crisis, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
Lenders are not legally obliged to settle a debt lowering your outstanding debt, but because they want to protect their bottom line, they may agree to a debt settlement to avoid further financial loss. You can try to negotiate a debt settlement on your own if your pocket permits to repay the entire outstanding at a time for a one-time settlement of dues, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with any fees. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial crisis, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
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A.Dear,
arassment by Lender: Harassment by lenders is illegal, and there are laws in place to protect borrowers from such behavior. In India, the Recovery Agents (Regulation of Activities) Act, 2011, governs the activities of recovery agents and prohibits harassment and abusive behavior by them. If your mother is facing harassment from the lender or their agents, she can file a complaint with the local police and the banking ombudsman.
Interest Rate: The lender must disclose the applicable interest rate and terms of the loan at the time of disbursal. It's essential to review the loan agreement to understand the interest rate and any additional charges or penalties for delayed payments. If there is a discrepancy in the interest rate or if it's usurious (excessive), your mother may have legal grounds to challenge it.
Blank Cheque: Providing a signed blank cheque can be risky, as it can be misused. Your mother should immediately inform her bank about the situation and consider requesting a stop payment on the cheque to prevent unauthorized withdrawals.
Loan Repayment: If your mother has repaid the principal loan amount and is now facing excessive demands for additional payments, she should consult with a legal advisor to understand her rights and options. Overcharging or unethical practices by lenders can be challenged legally.
Legal Action: If your mother believes that she is being treated unfairly or illegally, she may consider taking legal action against the lender. This could include filing a complaint with the banking ombudsman, seeking legal assistance to challenge usurious interest rates, or filing a case against harassment by recovery agents
Regards
arassment by Lender: Harassment by lenders is illegal, and there are laws in place to protect borrowers from such behavior. In India, the Recovery Agents (Regulation of Activities) Act, 2011, governs the activities of recovery agents and prohibits harassment and abusive behavior by them. If your mother is facing harassment from the lender or their agents, she can file a complaint with the local police and the banking ombudsman.
Interest Rate: The lender must disclose the applicable interest rate and terms of the loan at the time of disbursal. It's essential to review the loan agreement to understand the interest rate and any additional charges or penalties for delayed payments. If there is a discrepancy in the interest rate or if it's usurious (excessive), your mother may have legal grounds to challenge it.
Blank Cheque: Providing a signed blank cheque can be risky, as it can be misused. Your mother should immediately inform her bank about the situation and consider requesting a stop payment on the cheque to prevent unauthorized withdrawals.
Loan Repayment: If your mother has repaid the principal loan amount and is now facing excessive demands for additional payments, she should consult with a legal advisor to understand her rights and options. Overcharging or unethical practices by lenders can be challenged legally.
Legal Action: If your mother believes that she is being treated unfairly or illegally, she may consider taking legal action against the lender. This could include filing a complaint with the banking ombudsman, seeking legal assistance to challenge usurious interest rates, or filing a case against harassment by recovery agents
Regards
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A.Dear
File a Complaint: If the lender's behavior is in violation of the law or regulations, you may consider filing a complaint with the relevant consumer protection authority or ombudsman's office.
Regards
File a Complaint: If the lender's behavior is in violation of the law or regulations, you may consider filing a complaint with the relevant consumer protection authority or ombudsman's office.
Regards
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