Bank has withheld loan documents without giving written communication
16-Mar-2023 (In Recovery Law)
Sir, I have taken two home loan with one of leading banks. Out of which, one I took for my brother upon my property and I gave him power of attorney for dealing with bank and the amount was also disbursed to him. After few years due to loss in his business, he started defaulting the payments and there was now overdue. Recently when I closed my other loan account which I was paying regularly, the bank has withheld the loan documents siting that the other account is overdue without giving any written communication. Does the bank have legal authority to do that. Pl advice. Thanks
Yes, the bank has the legal authority to do so because both the loans are in your name. Even if the POA for dealing with the bank is with your brother you still are liable as loan was granted in your name and that makes you a guarantee.
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