What legal actions does bank takes if someone does not repay personal loan?

First of all. They cannot put you in jail. This is not the middle ages and there is no debtor's prison. They also cannot garnish your wages. Only the federal government can do that for taxes or student loans. What they can do is seize your collateral and ruin your credit. You may find yourself in court and then you will receive a judgment against you. This will stay on your credit ten years instead of the usual seven. It can also be renewed.

Do not think that it is too late. Talk to your creditor or talk to one of those nonprofit finance counselors such as Consumer Credit Counseling Service. I've included a link. They do not charge for thier services.

What legal actions does bank takes if someone does not repay personal loan?

They will repo property, damage your credit, garnish wages, or kick your ***.

What legal actions does bank takes if someone does not repay personal loan?

Confiscation of personal assets/jail time are always a possibilty.

What legal actions does bank takes if someone does not repay personal loan?

Depending on the amount and where you are. Normally they would request for immediate settlement after which will be followed by bad debt dept. Then lawyer's letters anf finally, court summons.

Like I've said, it depends very much on the amount and your location.

What legal actions does bank takes if someone does not repay personal loan?

see you in the SUPREME COURT.

What legal actions does bank takes if someone does not repay personal loan?

Does not pay differs from default payments.

If you default due to some unforeseen problems, you will be requested to pay the dues with abnormal penalties by their collection agents. They give enough time for you to settle the dues. If you intend to cheat, then they will send legal notice, then court summons. Any how you must pay the dues to the bank to avoid unnecessary penalties and harrassments. And also your crediblity will be spoilt by giving your details to international defaulters list which will cause you that you can never get any loan from any other banks.

May God bless you to enable you to pay off the debts to get you peace of mind.

Good Luck !

pnkmurthy@yahoo.com

What legal actions does bank takes if someone does not repay personal loan?

Depends on what were the terms of lending. If there is a guarantor, the Bank can proceed to recover the dues from him. But, if it is loan with surety/security, the proposed action varies from Bank to Bank. If the loan is against a vehicle, it can repossess the vehicle.

What legal actions does bank takes if someone does not repay personal loan?

To start with, the bank/lender could notify one or more of the credit reporting agencies AND their collection agency. When this happens you may be regarded as a poor credit risk. When this happens, you could be on a very slippery slope.

Any other lender, you may want to borrow money from, could require a much higher interest rate and/or may want a co-signer.

That second lender could have a credit report pulled for your co-signer - just the same as though your co-signor was applying for the loan you want.

IF your loan is approved - with your co-signor - your co-signor is just as responsible for your loan as you are. IF you default [fail to make a payment], the lender goes after your co-signor. Your co-signor pays for your inability to pay.

Your co-signor has to pay for your loan and be hassled by the collection agency AND your co-signor is reported to the credit reporting agency as a poor credit risk for YOUR loan. When this happens, your co-signor's poor credit rating is applied to all of his/her/their future loans. This is not a good position to be in, is it?

Is this fair for your co-signor? No. BUT your co-signor basically guaranteed your loan would be paid. So your co-signor's %26quot;head is on the chopping block%26quot;, for you, isn't it?

2] The lender could take you to court. This may put you on a higher, steeper, more slippery slope, for the reasons I previously stated.

PLUS A) the embarrassment of going to court.

B) Taking time off from work to be at a place you don't want to be.

C) Simply because your summons states a certain day, date and time, doesn't mean your case will be heard at that day, date and time. The court does things at the court's pace.

If your scheduled day, date and time is Wednesday, January 30, 2008 at 10 AM, your case may not be heard until 3 PM or later OR your case may be continued to some future date[s].

Want to buy a home, a vacation home, a car, a second car, a boat, an investment property, etc.? Pay your bills on-time or ahead of time.

DON'T co-sign for anyone.

The morals to the situation:

A] Pay your own bills - on time or ahead of time.

B] DON'T co-sign for any one at any time, for any amount, for any reason.

C] When you find yourself in a financial bind, DON'T run from any one you owe money to. Call those folks before they call you. Be honest. DON'T tell your creditor(s) you'll pay them on or before a certain date - when you KNOW you won't have the money.

I wish you well.

Our Family Slogan: %26quot;Every Good Wish to You and Yours!%26quot; I wish you, your family and your friends nothing but the absolute best of everything life has to offer.

Very Truly Yours,

Ron Berue

What legal actions does bank takes if someone does not repay personal loan?

If you go through the Loan application forms when you applied to the bank regarding what are all the ways they can collect the money they gave you, if you do not pay. Bank to bank the formalities are different. That is why elders like us warn young esters to verify and go through all the documents before you sign the papers in the bank papers . They will recover the amountt as per the legal act., and one day or other you will have pay and you can not escape my dear friend. Better you start repaying the amoun t and at least you go and meet the manager of the bank to excuse you for sometime till you start paying the dues.They will give you time to repay the amount you borrowed . All the best Yours VRVRAO

What legal actions does bank takes if someone does not repay personal loan?

This answer shall not be construed as suggestions for becoming an intentional defulter and get away with it unharmed or least harmed. It is only to provide in an acdemic scenario and as an educative measure for abiding by law. From the name, I infer, the query is in Indian context and answer is accordingly:

Normal procedure:-

(1) Issuing instalment due notice (2) Issuing reminders (3) Writing stern letter (4) Writing warning letter (5) Issuing legal notice (optional) (6) Issuing notice under the SARFESI Act, if liability exceeds Rs. 1 lahh,for attahment of securities pledged or hypothecated to the Bank. (7) Physically seizing moveable securities with the assistance of recovery agent and safe custody thereof and/or constructively seize real estate security by sealing (8) Issuing auction notice by post and newspaper advertisement (9) Selling in auction and appropriating proceeds towards firstly expenses incurred, secondly to interest accrued and finally towards the principal. (10) Suing in civil court by filing money suit if the remaining dues are less than Rs.10 lakhs and before the Debt Recovery Tribunal if amount exceeds the said sum.(11) After the suit is decreed by normal court procedure or Recovery certificate is issued by the DRT, file execution petition (12) Attach personal moveable assets, including salary and bank deposits firstly and then attaching real estate property personal asset and dispose off assets by auction, (13) Still if any amount is due file for insolvency proceedings and/or civil jail (very rare).

Abnormal procedure:

(1) Incessant telephonic calls at all odd hours through call centres or recovery agents (2) Sending thugs as recovery agents at odd hours, and abusing in filthy language openly and loudly in the audibility of neighbourhood (3) In the case of foreign banks, definitely, private banks mostly and nationalised banks, rarely, sending seizure agents to abruptly seize securities like motor vehicle, consumer goods etc in a humiliating manner. (4) Other measures as in normal procedure.

The methods include credit card dues also. To avoid humliation it is better to pay the dues in time. Fair practices are only in nationalised banks. It is always better in one's own interest to shun anything connected with foreign banks, approach private banks only in most unavoidable circumstances and at the first available opportunity , sever all connections with them, if you want to lead a peaceful life.No hi-fi techniques or hep English sweet talk should be lure to bank with them ever in life. Thosands have suffered and as yet there is no mechanism to inculcate discipline in these banks.