Checking a court case for defaulting on bank loan instalments

Salam Alaikom,

Dear Sir, 

You didn't mention the place where the contract has been signed, but the answer to your query, in general, is as follows:

First: Pursuant to the article (167) of the Jordanian Law of Civil Procedure, the legal interest shall not exceed 9% per annum.

Concerning the fines, it is a penalty clause in the contract in case of defaulting on monthly instalments, and the banks usually put this clause to guarantee the fulfilment of obligations.

I advise you to pay any due instalments, otherwise, the bank will oblige you to pay all the instalments with the interests and fines, or claim the compensation agreed on in the loan contract.

Second: Pursuant to the article (40) of the Jordanian Law of Civil Procedure, the competent court is the court of the defendant's domicile or the place of signing the contract.

So, if you need to inform about any possible case by the bank you have to go to the court where the bank is located. For example, if you have signed the loan contract in a bank located in Al Shmeisani, then the court that the bank will submit its claim at is the main Court of Amman.

I advise you to go to the Court and head to the information desk, and you will know through your national ID number whether the bank filed a case against you or not.

Kind regards,

For any further queries:

Mobile: 0799636832

Email: ahmadmesk@yahoo.com

Address: Jordan- Amman- Al Waha Roundabout- Al Madina Al Munawwara Street- Saad 5- Building 204- Office 410

Greetings,

First: In case you are desirous to inform if there is a case raised against you by the bank, you can contact the bank as a first step and try to request from the bank's legal department an additional grace period, given that they have no obligation to grant it to you, but some banks do.

Second: If you want to be informed about a possible case against you, provide a lawyer with your name national ID number to check that for you in the courts since you are abroad, or one of your relatives can do this for you.

Third: Below is the procedures that the bank follow as per the instructions of dealing with the customers according to the provisions of justice and transparency in the Banking Law:

Article (11) clause (A)- In case the customer defaulted on payments, the bank shall:

• Notify the customer and guarantor in writing to the address provided to the bank, within a period of thirty days thereof
• Consider all instalments due and explaining the procedures to be taken by the bank in case the customer didn't resume the payments
• Refrain from contacting any third person to collect information on the customer or the guarantor, unless authorized to do so.

Article (11) clause (B)- In case the customer defaulted and failed to resume the payments, and in line with the applicable provisions in this regard, the bank shall commit to the following:

• Refrain from imposing any fees or commission after one year of the customer's default
• Not to impose a cut from the customer's or guarantor's regular income exceeding the permitted rate as per credit the policy of the bank, as per article (8) of the said regulations.

Article (11) clause (C)- The bank shall explain his credit policy with a clear procedure for the debt rescheduling followed by the bank.

This is regarding the legal procedures. Concerning the practical procedures, the bank does the following:

In case the customer defaulted on more than three instalments, you shall be transferred to the legal department. Failing to comply, the file will then be transferred to the litigation lawyer to initiate legal proceedings. 

In this case, the lawsuit may last from 3 to 6 months or one year maximum, and the court imposes a ban thereafter on you and any guarantor mentioned with you while signing the loan contract.

The execution court then inspects any of your properties like a car or a house, and attach them to sell and give the bank the debited amount.

Kind regards,

Attorney Amany Al Jabari

Know Your Rights Legal Initiative

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