Received notice to appear in court. Abrupt hike in EMI. What to do?

In Recovery Law

My home loan provider has sent me a show cause notice today, as I had stopped paying the EMI 2 years ago owing to the abrupt and unexplained increase in EMI suddenly. I had a home loan top up from GE finance in 2007 (now Magma Fincorp) and they suddenly increased my EMI from Rs. 17,000 to Rs. 28,000 per month and did not have a valid reason when I enquired about the same.

I stopped paying the EMI thereby and after a few months offered them a 1 time settlement to which they never responded. Now today I get a show cause notice from GE (not Magma) to appear in the Court.

What should I do?

Answers (1)

439 votes

We would be in a better position to guide you after reading your loan agreement. However as per the information you have provided us we have the following suggestion for you:

As the matter has reached the Court, you shall have to appear and file a detailed reply wherein you shall have to explain your position and the reason as to why you had stopped paying the EMI as you are the one who has defaulted.

You can explain your grounds for non-payment including the arbitrary increase in EMI and the offer to make 1 time settlement and the same not being responded to by the bank.

You do not need to worry, the Court will not impose any unreasonable conditions on you, rather you shall be given a chance to settle your dues, however it is essential that you clearly explain your grounds for non-payment.

Googling your legal issue online?

The internet is not a lawyer and neither are you.
Talk to a real lawyer about your legal issue.


Popular Recovery Lawyers

Advocate Sunil Kumar Bakshi
Sector-16, Faridabad
35 years Experience
Advocate Rajesh Rai
Sector-19, Dwarka, Delhi
22 years Experience
Advocate H Gouri Shankar
Banjara Hills, Hyderabad
26 years Experience
Advocate Rajeev Nigam
Kanpur Nagar, Kanpur
28 years Experience

Report abuse?

Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at and has been responded by one of the Recovery Lawyers at to address the specific facts and details. You may post your specific query based on your facts and details to get a response from one of the Lawyers at or contact a Lawyer of your choice to address your query in detail.

Related Questions

" has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."

Related Articles