What is financial Leasing?

With increasing accessibility to organize lending banks and financial institutions are increasingly playing a significant role in the lives of the consumers who constantly need access to Finance to top up their lifestyle such as a vehicle loan car loan home loan or personal loan Banks and financial institutions are a part of everyone’s life the financial relationship between a person and his bank is covered by contractual agreements and a wall of the land an Organized system to regulate financial lending is beneficial so long as the assets of the financial institutions are performing Where there’s a change in the circumstance of the consumers the risk of the fault increases? such issues are inevitable in any economy and thus Recovery of non-performing loans have to be addressed from the perspective of public policy now let’s refer to an example where an employee who’s met it out with a sudden job loss as a result of restructuring or downsizing or such other reasons This employee has no means now to make payments towards his debts Whereas the banks to factor in such events, and there are insurance products which address these issues the banks do have the right to continue pursuing the outstanding amount of the lunch a Financial institution can proceed with a faulting party in two ways First option is to move to the court to pursue a commercial case against the default Er, the claimant here is the creditor who will initiate commercial proceedings in a court to try it in for specific performance of the contract It usually means that the individual has to hire legal representation to defend themselves in court. This process takes 12 to 30 months the court may appoint an expert to review the Documentary submissions and establish, the actual debt owned by that a falter and to view the viability and enforceability of the contract The second option is to register a police complaint on account of bounced checks It’s a usual practice to collect security checks from consumers before availing them credit facility banks and such other financial Institutions may take up the three blank checks solely for security purposes to ensure that the credit facility is fully covered against security checks Accordingly when a consumer starts the faulting and making payments towards his credit facility such as loans or credit cards The bank may present a security check Given the debtor to fault it on his credit facility as he did not have the resources to make timely payments It is highly likely that these security checks may also bounce Accordingly the banks made a man that that a falter clear is Outstanding debt less the bank should register a police complaint on the basis of a bounced check here the accused may find recourse in a civil case against a creditor where an application to the court will be made to seek an appointment of an expert to determine the actual liability of the debtor Moreover the debtor may also ask the court to determine whether the bank had the right to deposit the security check to satisfy its claim against the debtor Further the court will also attend to the debtor request and decide whether the check will need to be returned to the debtor

Leave a Reply

Your email address will not be published. Required fields are marked *