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How to Get Your Money Back After a Loan Agreement Failure

Question

What steps can my relative take to recover 5 lakh taka loaned to a high school headmaster who has refused to repay the amount and is making excuses?

Answer

Recovering a loan can be challenging, especially when the borrower is unwilling to pay. Here are steps your relative can take to recover the 5 lakh taka loan:

  • Document Everything:
    • Collect and organize all relevant documentation, including:
      • The loan agreement or any written communication that outlines the terms of the loan.
      • Bank statements showing the loan transfer.
      • The check with blank signatures used as security.
      • Any correspondence regarding repayment requests.
  • Written Demand for Repayment:
    • Send a formal demand letter to the headmaster, requesting repayment of the loan. This letter should include:
      • A clear statement of the amount owed.
      • The due date for repayment.
      • A mention of any interest accrued, if applicable.
      • A deadline for the response, typically 7 to 14 days.
  • Negotiation:
    • If your relative feels comfortable, they can attempt to negotiate a repayment plan with the headmaster. This could involve:
      • Agreeing to a smaller amount paid over time.
      • Setting a specific date for the repayment of the full amount.
  • Legal Notice:
    • If the headmaster does not respond to the demand letter, consider sending a legal notice through a lawyer. This notice should:
      • Clearly state the amount owed.
      • Detail the consequences of non-payment, including potential legal action.
  • Filing a Case:
    • If all else fails, your relative may consider filing a civil suit against the headmaster. This process involves:
      • Filing a case in the appropriate civil court.
      • Providing all evidence of the loan agreement and attempts to recover the money.
      • Seeking a judgment for the amount owed plus any applicable interest.
  • Consumer Court:
    • If the loan falls under the purview of consumer protection laws, consider approaching the Consumer Rights Protection Council. They can help resolve disputes related to loan agreements.
  • Seek Assistance from Local Authorities:
    • If the situation escalates or if there is any harassment involved, your relative can seek assistance from local authorities or police.
  • Legal Aid:
    • If your relative is facing financial difficulties in pursuing legal action, they may reach out to organizations that provide legal aid for assistance.