Private lender demanding extra money to close loan account. What to do?

Question

Private lender demanding extra money to close loan account. What to do?

19-Jul-2023 (In Recovery Law)

I took loan from a private lender to buy my car. He took 15 post dated cheques as security and put my car under hypothecation. I paid all my instalments in cash to the money lender and he used to provide me receipt against my payment. I’ve paid all but a couple instalments on time and even the instalments I paid late due to Covid, I informed and discussed with him about it, instead of defaulting on loan. Now, the last instalment was to be paid this month. When I went to pay the last instalment, he informed me that because I’ve paid 2 of my instalments late, I’ll have to pay extra amount to close my loan account and remove hypothecation. Upon my protest he refused to take my final instalment and threatened me that he’ll be coming to take his money through court and will file recovery for the previous 2 instalments and this last one and will charge 8% interest per month. Can he do that? What should I do now?

Answers (5)

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Adv. Kartik Krishan Sood Adv. Kartik Krishan Sood

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Advocate Kunal Srivastava LawRato · Accepted Answer · 2022-07-19T13:16:49+05:30

Answer #2

Hi, Seems to be an interesting query, What can and cannot be done in this case will be dictated by the terms of the loan agreement and whether a force majeure event such as covid would give you respite. If you have a record of all your communications with the lender in this regard, it may be used in a civil suit against the lender seeking appropriate orders to close the loan and remove hypothecation. Please feel free to contact me for any further assistance.

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Advocate D. Khan LawRato · Accepted Answer · 2022-07-19T13:36:15+05:30

Answer #3

You need to hire an advocate in this regard n u need to follow as under :- 1. Get the police complaint drafted via advocate 2. U need to issue one legal notice to the loan company n that guy 3. Forget everything n pay the amount as per his condition Thanks

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Advocate Rohit Manan LawRato · Accepted Answer · 2022-07-19T16:42:56+05:30

Answer #4

before he moves to the court... you approach the court stating all the facts and deposit the installemtns in the court.. by doing this he won't be able to harm you.... pls it will also help you to get the hypothecarion removed against you...

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Advocate Jitender Singh LawRato · Accepted Answer · 2022-07-19T18:08:23+05:30

Answer #5

If they are not listening to you then you can send them a legal notice and in that notice you can write either refund my money back along with compensation or face legal action. And if want to go legal then you can always forward a written complaint to the police station of your area. For more legal assistance I am just a call away.

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Adv. Jitender Singh Adv. Jitender Singh

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