file police complaint against NBFC under section 504 , 506 for acts endangering peace , criminal intimidation .
2) also complain to RBI against said NBFC
Education loan - admission cancellation
Dear sir, mam, Need your advise! Background - I had taken admission to an MBA course from a reputed higher education institute in late 2022 / early 2023. I had taken educational loan of Rs. 476,000 from one NBFC. As I was out of the country for some work and since the NBFC needed a correspondent in India, they issued the loan on my mother's name as my representative. When we had barely started the course, the University Grant Commission (UGC) banned the institute from running the concerned course due to quality concerns. Post this, I cancelled my admission and requested a refund. The institute got in touch with NBFC to arrive at the refund amount and cancelled my application on 29th May. Then, institute processed a refund to myself and to NBFC in June, respectively for the parts that we had paid till date. Unexpectedly, NBFC reached me in first week of July and started asking for EMI of 28,500, claiming that the loan account is still open. I explained to them that my admission was cancelled and loan balance was settled by institute directly with NBFC in June, but they continued to demand EMI from me / my mother, making aggressive repeated calls 5 to 6 times a day. Last week, I managed to get payment reference number from institute and shared it with NBFC. They acknowledged that they have received the amount, but there is a shortfall if Rs 3700 and they are talking to institute to fix it. When I thought everything is in control, today I received a whatsapp message from NBFC threatening me of legal action for not paying EMI of 28,500 (surprisingly). In summary, I don't owe any money to NBFC and I feel that I and my mother are being abused and threatnened to pay EMIs by citing legal actions. Or this may be a trick to siphone off money from us? What should we do in this case?
Asked 1 year ago in Civil Law
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8 Answers
They seem to be unnecessarily chasing you and your mother, apparently in the hope of receiving some EXTRA payments.
Send them a legal notice/cease and desist notice through a lawyer, clearly narrating the sequence of events and elucidating the rue and correct position.
Regards
Since you had avail loan so if there is any short fall as you stated Rs. 3700, hence, you are liable to compensate the NBFC. No EMI is liable to be paid. Contact NBFC and settle the issue. You can complained to bank ombudsman and DRT for relief.
- Since, you have already informed the NBFC regarding the refund of the loan amount , then the said threatening is against the law
- You & your mother can lodge a complaint before the police and higher official for the offence of threatening , breach of trust , defamation and cheating , and send a copy of the same to the bank with a notice
- Further, you can file complaint before the RBI as well online.
You consult a lawyer and issue a legal notice to the NBFC referring to their notice and deny their demand.
You can attach the reference giving details about settlement of entire amount and ask them to refrain from making such illegal demands henceforth failing which you can warn them that you will initiate appropriate legal action against them and claim damages.
Avoid them. Nothing will happen. If next they call, complaint to police. Force recovery is banned and illegal.
You can file criminal complaint against them
Dear Client,
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Document everything. Keep a record of all your communications with the NBFC, including the dates, times, and content of the calls and messages. You should also keep copies of any documents you have, such as the loan agreement, the refund agreement with the institute, and the payment reference number from the institute. -
Send a written complaint to the NBFC. In your complaint, explain the situation and provide all of the documentation you have gathered. You should also request that the NBFC stop harassing you and your mother. -
Contact the ombudsman for the NBFC. The ombudsman is an independent person who can help resolve disputes between borrowers and NBFCs. You can find the contact information for the ombudsman on the NBFC's website. -
File a complaint with the RBI. The RBI is the regulatory body for banks and NBFCs in India. You can file a complaint with the RBI online or by mail.
