Money lender charging 10% interest per month
1 month ago
Hello,
Please help me, as I don't know what to do about this issue. My wife has taken a loan from a person living in our vicinity. She had taken a sum of 1lac 60 thousand @ 10% interest per MONTH, ie 16k a month. It's been a year she has been paying every month. Now we are facing financial issues and we requested to pls forgive this months interest and we'll pay it next month but denies and tells us to pay penalty of Rs100 per day. We are tired of paying such a high interest rate per month and we don't know what to do now. I don't even know if it's even legal for them to charge such interest rates per month. Pls help us out.
A.Dear Client,
Engaging in money lending or any financial transactions without the required license or permission from the relevant regulatory authorities, such as RBI or SEBI, may lead to legal consequences under the Prevention of Money Laundering Act, 2002 (PMLA). This legislation is designed to combat the criminal act of legitimizing income/profits derived from illegal sources.
Under Section 3 of the PMLA, 2002, anyone directly or indirectly involved in processes or activities connected with the proceeds of crime, including concealment, possession, acquisition, or use, can be charged with money laundering. The government or public authority, upon receiving a report through the vigilance cell, has the power to confiscate property earned from illegally gained proceeds.
Offenders can face imprisonment for a minimum of three years, extending up to seven years. Only recognized and approved Non-Banking Financial Companies (NBFCs) or financial institutions are legally permitted to engage in money lending or financial transactions.
In case of harassment by the lender, you have the option to serve a strong legal notice demanding the cessation of any harassment or coercive actions. The notice should inform the lender that if such illegal practices persist, the matter will be reported to the police and the relevant regulatory authority. This legal action aims to protect your rights and ensure compliance with the law.
Engaging in money lending or any financial transactions without the required license or permission from the relevant regulatory authorities, such as RBI or SEBI, may lead to legal consequences under the Prevention of Money Laundering Act, 2002 (PMLA). This legislation is designed to combat the criminal act of legitimizing income/profits derived from illegal sources.
Under Section 3 of the PMLA, 2002, anyone directly or indirectly involved in processes or activities connected with the proceeds of crime, including concealment, possession, acquisition, or use, can be charged with money laundering. The government or public authority, upon receiving a report through the vigilance cell, has the power to confiscate property earned from illegally gained proceeds.
Offenders can face imprisonment for a minimum of three years, extending up to seven years. Only recognized and approved Non-Banking Financial Companies (NBFCs) or financial institutions are legally permitted to engage in money lending or financial transactions.
In case of harassment by the lender, you have the option to serve a strong legal notice demanding the cessation of any harassment or coercive actions. The notice should inform the lender that if such illegal practices persist, the matter will be reported to the police and the relevant regulatory authority. This legal action aims to protect your rights and ensure compliance with the law.
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A.Dear Client,
If any person is involved in trading of money lending or any other financial transaction without any license or permission of the concerned regulatory authority like RBI, SEBI, then he may be booked under the Prevention of Money Laundering Act, 2002 (PMLA) which was enacted to fight against the criminal offense of legalizing the income/profits from an illegal source, once reported to the vigilance cell. The Prevention of Money Laundering Act, 2002 enables the Government or the public authority to confiscate the property earned from the illegally gained proceeds. As per Sec.3 of PMLA, 2002, whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming it as untainted property shall be guilty of the offense of money-laundering. The offender can face imprisonment for not less than three years, extending up to seven years. Nobody other than the recognized and approved NBFC or Financial Institution can be involved in the trading of financial transactions or money lending business. In case of harassment by the lender, you can serve a strong legal notice in that direction asking him to refrain from any type of harassment or coercive action and informing him that if he does not refrain from the illegal practice, the matter will be brought to the notice of the Police and the concerned regulatory authority.
If any person is involved in trading of money lending or any other financial transaction without any license or permission of the concerned regulatory authority like RBI, SEBI, then he may be booked under the Prevention of Money Laundering Act, 2002 (PMLA) which was enacted to fight against the criminal offense of legalizing the income/profits from an illegal source, once reported to the vigilance cell. The Prevention of Money Laundering Act, 2002 enables the Government or the public authority to confiscate the property earned from the illegally gained proceeds. As per Sec.3 of PMLA, 2002, whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming it as untainted property shall be guilty of the offense of money-laundering. The offender can face imprisonment for not less than three years, extending up to seven years. Nobody other than the recognized and approved NBFC or Financial Institution can be involved in the trading of financial transactions or money lending business. In case of harassment by the lender, you can serve a strong legal notice in that direction asking him to refrain from any type of harassment or coercive action and informing him that if he does not refrain from the illegal practice, the matter will be brought to the notice of the Police and the concerned regulatory authority.
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