Questions & Answers
Getting clearance from the bank after settlement of a loan
Hi Miss Gatina,
I was hoping you could answer a quick question for me.
If I have an open legal case raised against me by a bank for unpaid liability, then the liability is paid off, are they obliged to close that legal case and/or issue a NOC?
The reason I ask is that my bank won't close it as I have another outstanding liability and in negotiations to settle, they can only open a civil case for that one, not a legal one.
So my question is, are they allowed legally to keep a case open for a liability that's been paid off? Can they be forced to close it?
Thanks
Debs
Dear Applicant,
In case they opened a case against you for unpaid liability and later on you settled this liability, you are supposed to make sure that once you paid the outstanding amount they issued a release letter under your name.
To reply your question: if the liability is settled, they need to close that file against you and open another one for another liability (if there are 2 different contracts signed between you and the bank).
Best regards,
Raluca Gatina.
