Loan guarantor: To be or not to be

RaSing · 14th May 2013, 13:01

Quote:

Originally Posted by bblost

I am assuming you have not signed anything accepting your responsibility for this loan.

Yes , i did not sign anything nor did i gave any confirmations over the phone

Quote:

Originally Posted by comfortablynumb

Post your query on this thread too, maybe then you'll get replies from the "experts"

http://www.team-bhp.com/forum/shifti...ultations.html

Thanks for pointing it.

apachelongbow · 15th May 2013, 12:45

Quote:

Originally Posted by RaSing

Hi Friends

I have been unknowingly used as a personal reference on a loan application for neighbour of mine and that person has not paid back the personal loan that he has taken from HDFC. Now the HDFC people are calling me(called me already three times) asking me to contact this person and have him call them. I went out of town and could not call this person and neither i want to get in this mess. The loan company says that if I cannot get this individual to pay them back, that they will take him to court and I will have to appear in court to verify who he is. I consider the continual phone calls to be harrassment and believe that this individual's financial circumstances are none of my business.

Can i refuse to help these guys.What are my rights and obligations in this situation?

I understand you were 'unknowingly' used as a reference for a loan by your neighbour. I dont understand how come his loan application was passed, without a reference check, or had you accepted to be a reference when the loan officers came to do his check?
Any case a person providing reference is not under any legal binding to either follow up or pay off the bad debt, unlike a guarantor.
Next time HDFC calls up, you can ask them two things upfront
1) Am I liable to pay or trace or force my neighbour to pay up?
2) Am I supposed to be called/informed/harrassed because my neighbour is a defaulter?
And tell them in clear words, you are filing a complaint with the Reserve Bank of India RBI banking ombudsman (google up the id online), and HDFC can be in serious trouble for not following banking guidelines here.