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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

Dear Client,
A dispute between a Tenant and Landlord is resolved under the state-specific Rent Control Act or the Premises Tenancy Act, under which a Rent Controller or Addl/Dy. Rent Controller is appointed to deal with the dispute arising out of a rent/lease agreement between the parties. In the given scenario, serving a legal notice to the Landlord/Building owner, you can file an application explaining your grievance against the arbitrary and unethical action of the land/building owner before

Dear Client,
A guarantor can challenge the validity of a guarantee on grounds established under the Indian Contract Act, 1872 before the Debt Recovery Tribunal (DRT). Under Section 133, any material alteration to the original loan agreement between the creditor and the principal debtor, made without the guarantor/surety's consent, can discharge the surety from liability. Sections 142, 143 and 144 of the Indian Contract Act, 1872 address the circumstances when a guarantee become invalid. As per

Dear Sir,
Case of a Bounced Cheque: The one significant exception where a criminal case can be filed is if you have given the bank a cheque that bounces due to insufficient funds, and the bank initiates action under Section 138 of the Negotiable Instruments Act. This is a criminal offense, and a court can issue a summons or even a warrant if you fail to appear.

Dear Client,
Section 60(1)(i) of the Civil Procedure Code(CPC) explicitly states that salary to the extent of Rs. 1,000 and two-thirds of the rest can be attached in execution of decrees other than maintenance decrees. The proviso further clarifies that if such attachment persists continuously or intermittently for 24 months, that portion of salary becomes exempt from further attachment for a period of 12 months only in respect of the same decree. If the salary is attached in execution of diffe

Dear Sir,

Since the loan dates back to 2014, recovery through court is time-barred (3 years limitation under Limitation Act) unless they already filed a suit or obtained an award.

However, the CIBIL reporting continues until the bank writes it off/settles it.

This means they may not be able to sue you now, but your CIBIL score remains damaged until you regularize.

Dear Sir,
Multiple decrees (more than one creditor):

The same limit applies, but attachment may be divided among decree-holders proportionately.

Maintenance decrees (under Section 125 CrPC / Hindu law):

Up to 50% of salary can be attached.

Attachment duration:

Cannot exceed 24 months continuously for the same decree.

After a 12-month gap, attachment can resume if balance remains unpaid.

Exemptions:

Retirement benefits (PF, gratuity, pension) are exempt from attachment until credited to y

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 even on the ground of your jail custody. 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, cre