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Dear client,

If you have received a legal demand notice under Section 25 of the Payment and Settlement Systems Act, 2007, it usually means the case relates to dishonour of an ECS / auto-debit mandate or electronic payment instruction. Section 25 is similar in nature to cheque bounce proceedings — it applies when an electronic payment (like EMI auto-debit) fails due to insufficient funds or stopped payment.

First, do not ignore the notice. It is a statutory notice. Normally, you are given tim

Dear Client,

You generally cannot get an interim injunction for 3 years merely to seek time for repayment of a personal loan once a recovery case has been filed and summons issued. Courts usually do not stop recovery proceedings or grant long blanket protection unless there is some illegality, fraud, or serious dispute in the loan itself.

However, you can appear before the court on the summons date and request reasonable time to repay or propose a settlement/instalment plan. Courts sometimes

Dear Sir,

Ask for Restructuring / Moratorium (Again, but in Writing)

Send email + registered post to bank grievance cell requesting:

EMI moratorium OR

Restructuring OR

Temporary interest-only payment OR

One-time settlement (OTS)

Written record is critical.

Escalate Complaint (This Is Powerful)

Since bank ignored you:

File complaint to:

Bank’s Grievance Redressal Officer

RBI Banking Ombudsman

This often stops harassment immediately.

Dear Sir,
If You CANNOT pay & want to avoid harassment

Ask for:

One-time settlement (OTS)

You pay a reduced lump sum.
The bank writes off the remainder.

After OTS:

No legal case

No police complaint (loan default is NOT criminal)

Loan is closed

Dear Client,
An E/R of warrant typically means Execution Report of Warrant which is issued against you when you do not appear before the court for the money recovery proceedings. In this situation, you can resolve the issue, by attending the court hearings on the next date. Further, since E/R (arrest warrants) are bailable warrants, you can file an application for cancellation of warrant and seek bail in the matter. Next, Even if a debt recovery proceedings has already been filed against you, a

Dear Client,
A borrower of a loan is held personally liable for his or her debt for non-payment of the outstanding amount of the loan, and legally, there is no escape route to get rid of that liability. In the given scenario, you may negotiate or settle your dues against loans by following the steps like lowering your interest rate, arranging for a reduced interest rate is one of the most common requests a defaulter borrower can make to the Bank/NBFC, creating or restructuring a repayment plan

Dear Client,
In the given scenario, your mother should immediately file an FIR against her husband for criminal breach of trust and cheating under Sections 316 and 318 of the Bharatiya Nyaya Sanhita(BNS), 2023 with the local police station which is crucial for further investigation and to deter/prevent him from availing loans from different sources. Further, misusing one's authority and other documents with mala fide intention without his or her knowledge is a form of "economic abuse" and "emot

Dear Client,
As per the RBI Guidelines, Banks/NBFC/FI are advised to ensure that the contracts with the recovery agents do not induce the adoption of uncivilized, unlawful, and questionable behavior during recovery process. In the context, reference may be made to (a) Circular DBOD.Leg. No. BC.104/ 09.07.007 /2002-03 dated May 5, 2003, regarding Guidelines on Fair Practices Code for Lenders (b) Circular DBOD.No.BP. 40/ 21.04.158/ 2006-07 dated November 3, 2006, regarding outsourcing of financia

Dear Client,
In the given scenario, you may negotiate or settle your dues against your multiple loans by following the steps, like lowering the interest rate, arranging for a reduced interest rate, creating or restructuring a repayment plan or extending the tenure of repayment of the loan, or looking for debt forgiveness. offering a one-time settlement payment under the OTS Scheme. But all your attempts solely depend upon the discretion of the Bank. However, it's typically done through third pa

Dear Client,
A loan availed of by the primary borrower making one co-borrower/co-applicant does not impose any legal right or liability on the co-applicant/co-borrower unless the primary borrower fails to repay the loan. However, the co-applicant is equally liable to repay the loan if the primary borrower defaults to repay the loan. But, a co-borrower's credit card default may severely damage the primary borrower's credit score because a default is reported to credit bureaus (CIBIL) for both in