Question: Four years ago, I took a loan from the bank, and I used to pay the installments regularly. I have so far paid almost double the loan amount. I asked the bank to give me a letter stating that I have paid as much. But the bank has refused. What is the appropriate action to take against the bank?
Do I have the legal right to demand that the bank return the excess amount that the bank has unlawfully taken, in addition to compensation? If a lawsuit is filed, will the interest that the bank calculates according to the loan agreement be stopped?
Answer: You have the right to file a claim against the bank to terminate the loan agreement and to return the excess amounts with compensation. The interest will stop upon filing the case. The bank might file a counter claim for any extra amounts or interest. You have to take into consideration that there is another type of interest called the legal delay interest the court might decide to be paid from the date the case is filed until the date of full payment.
You have to request the court to transfer the matter to a banking expert who shall check the loan agreement with the bank files and accounts to be able to re-calculate the amounts you paid with the interests agreed upon.
You have to provide the expert and the court with all the documents related to your requests, especially the payments you did, as the burden to prove matters lies on you.
Article 1 of the Federal Decree by Law No. 35 of 2022, promulgating the Law of Evidence in Civil and Commercial Transactions states that “The plaintiff has the right to prove his claim and the defendant has the right to disprove it. The facts to be proven shall be relevant to the action, have a bearing on evidence and be admissible. No judge shall render a judgment based on his personal knowledge.”
