Hi, if you unable to pay interest they bank will auction your gold and from the sale proceeds if the whole amount is not recovered then they have the right of recover the amount, but the thing they can't send anti social elements to your house to recover the amount for this you can approach the court........ and it is better you can approach local advocate.
Can banks coerce
We borrowed money from a gold loan company called Muththoot. After paying a lot of interest, we are unable to pay any more. We have not paid interest for one year. Now they want to auction the jewels, that is alright with us. But, they say that if they do not recover the whole amount from auctions, they will approach the court to recover the balance from us. They also say that they will send loan recovery team (goondas) to our house everyday. I think there is a court order restraining banks/financial companies from sending goodas to people's hhouses. Can someone tell me what I should do?
Asked 10 years ago in Property Law
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3 Answers
Can we argue in the court that we are unable to pay interest and so how we can pay the whole interest amount? Can we say we are willing to give up the jewels and we cannot pay any more money? can they send goondas to our house?
Asked 10 years ago
no they cannot send goondas to your house . if they do so file police complaint against them . since you have not paid interest they can sell of the jewels . if there is shortfall they can file civil case to recover balance amount .
No they cannot. It is illegal. Immediately file a FIR whereupon the goons and the bank official who ordered the goons to go to your house can be arrested and put behind bars.
