Question Tag: unconscionable terms

In March 2016 Major Munkaila applied to Hallmark Bank for and was granted a loan of GHc50,000.00 to purchase a four bedroom property at Cantonments Accra. The loan of GHc50,000.00 was secured with a legal mortgage over the property.

The facility letter granting the loan which was duly signed by Major Munkaila stated among others that upon default by Major Munkaila in fulfilling all his obligations under the mortgage Hallmark Bank would exercise its power to recover the principal sum, the interest thereon as well as incidental expenses incurred by Hallmark Bank such as solicitors fees and bailiffs fees.

In December 2018 Major Munkaila relocated to Congo. He left the property in the care of his sister Afia Cash who informed Major Munkaila was a tenant in the property.

Upon default by Major Munkaila in monthly repayments Hallmark Bank instituted an action in the High Court for recovery of the outstanding balance and for an order of possession of the property. The bank obtained judgment in default and sent its loan officers to deliver the writ of possession to Major Munkaila but on each visit the property was locked and the bank officers left the writ at the gate. Akua Konkonsa who occupies the adjoining property had told the bank officers that Major Munkaila had relocated to Congo and had rented the property to Afia Cash. The Bailiff of the court went to the property and never met anyone.

After the case the High Court ordered the bailiff to forcible enter the property. Major Munkaila is claiming he was not served with the demand letters, notice to possess the property and all the court processes. He also claims the Bank charging him with the interest and other incidental expenses is unconscionable and unfair.

Advise Major Munkaila with the aid of relevant statutes and case law on any remedies available to him.