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How to Handle Loan Notices for a Farm Project in Bangladesh

Question

My husband took a loan from a farm project about 7/8 years ago. They said if he paid 5,000 taka, they would give him a house, cow, or farm. He received a loan of only 10,000 taka after that payment. He made 5 to 7 installments, but the collectors stopped coming. Recently, a notice was sent for a total payment of 17,000 taka. Many others received similar notices, but only 2 or 3 names, including my husband’s, are being pursued. Should I pay this 17,000 taka or ignore the notice?

Answer

In dealing with a loan notice, it’s crucial to understand your rights and obligations in the context of Bangladeshi law. Here are some key points to consider:

  • Loan Agreement:
    • Nature of the Loan: It appears that the loan was provided under a farm project, likely governed by specific terms and conditions. If your husband signed any agreement, those terms will dictate the obligations, including repayment schedules and consequences for default.
  • Payment Obligations:
    • Installments Paid: Since your husband paid 5 to 7 installments, you should review any records of those payments. If he has proof of payment, it may affect the total amount owed or how the project managers assess the situation.
    • Outstanding Amount: The notice indicates a demand for 17,000 taka. You need to clarify whether this amount is justified based on the original loan terms and payments made.
  • Collecting Payments:
    • No Collection: Since the collectors stopped coming, you might argue that the lack of collection constitutes an implicit agreement or waiver on their part. However, this does not necessarily absolve you of the legal obligation to repay the loan.
  • Legal Notice:
    • Responding to Notices: It’s important to take the notice seriously. Ignoring it could lead to further legal action, including potential claims for recovery of the amount owed. You might want to respond formally, stating your position and any disputes regarding the amount owed.
  • Consult a Lawyer:
    • Legal Advice: It is highly advisable to consult a lawyer who specializes in financial or contractual matters. They can review the loan documents and the notice to help determine your obligations and rights. Legal guidance can also provide clarity on how to respond effectively.
  • Negotiation Options:
    • Settling the Debt: If possible, you might explore negotiating with the loan provider for a payment plan or reduced settlement amount. This can sometimes be achieved through written communication or legal representation.
  • Take Action:
    • Don’t Ignore: Ignoring the notice could worsen the situation. It is better to proactively address the matter, either by paying the amount, negotiating, or disputing it legally.