What is the prescription period for a bank loan repayment? I had this bank loan (salary loan, no collateral) way back in 2002 (if I remembered right). The payment was through a salary deduction mode. The loan is for a 2yr payment term. However, our Acctg. Dept. then failed to remit some of our monthly payment and the bank called our attention about it. The manner of handling our default embarassed most us then, that we decided to send a letter to the regional office of the bank asking for a review and if indeed we had been in default for long on their records- we ask for a restructuring. The letter was made and signed by all employees who have an outstanding loan at that time, the letter was sent sometime early or mid 2003. However, until my separation from that company in august of 2003, I never heard or received any letter/demands from this bank not until last week. A letter was received at home July 21 but was dated sometime April. I'm afraid to take action now as I am not physically present to handle it and from what I heard from the other previous co-employees of mine, the bank gave them huge amount from their P40k loan balance to nearly or over a P1M already when they received their demand letters. Where am I going to get that money!
Please give me your best legal advice on how to go about my case. I no longer have all the facts of this loan as all the payment proof, etc. was with my previous company which unfortunately have closed up in 2008 or 2009.
I would appreciate a lot any legal advice you may provide me. Thank you