This article is going to be very interesting and informative, especially for those people who purchase products on installment plans.
Afzal Bhai is with me today. He purchased a mobile phone on installments from an electronics store. After buying the phone, his monthly installment was Rs. 8,150.
He paid the installments regularly for several months:
- March – First installment paid
- April – Second installment paid
- May – Third installment paid
- June – Fourth installment paid
- July – Fifth installment paid
The payments for August and September were also made, although the receipts for those two months are not currently available with him.
However, a serious issue arose regarding a blank cheque that Afzal had given to the company at the time of purchase.
The Problem with the Cheque
The electronics company had taken a blank cheque worth Rs. 97,000 from Afzal as a guarantee when he purchased the mobile phone on installments.
When the October installment was delayed, the company filled in a date on the cheque themselves and cashed the entire cheque, withdrawing the full amount of Rs. 97,000 from his bank account.
To understand the situation, I personally called the branch manager of the electronics company and asked why the cheque had been cashed.
Their response was that the October installment had not been deposited on time.
However, several serious questions arise here:
- If the October installment was delayed, how could they withdraw the entire amount?
- If the due date for the installment was 10 October, why was the cheque cashed on 3 October?
- How did they know how much money was available in the bank account before depositing the cheque?
- Why did they not inform the customer before cashing the cheque?
When questioned further, the manager said they were not even sure whether the cheque had been successfully cleared, and that the matter was now with their legal department.
Mistakes Made in This Case
There were some serious mistakes in this situation.
First mistake: Afzal purchased the mobile phone on installments without fully understanding the legal risks.
Second mistake: He issued a blank cheque as a guarantee.
Whenever you issue a cheque, you should always:
- Write the date
- Write the exact amount
- Issue it in the name of the company
- Never leave a cheque blank
What Should Be Done in Installment Purchases
If someone must buy a product on installments, they should follow a safer legal process.
Every time an installment is paid:
- The company should return the previous cheque.
- A new cheque should be issued for the remaining balance.
- The amount on the cheque should reduce after each installment payment.
This protects the buyer from losing the full amount unfairly.
A Word of Advice
In many religious and financial discussions, people also advise avoiding installment-based purchases altogether. If possible, it is always safer to save money and purchase products in cash.
If you do not have enough money today, work harder, save more, and buy the product when you can afford it. It may take more time, but it prevents legal and financial complications.
However, if you must buy something on installments, always follow proper legal precautions and never issue blank cheques.
Final Thoughts
This video and article were created to raise awareness so that others do not fall into the same situation.
If any legal action becomes necessary, the matter will be pursued accordingly. But the main purpose of sharing this case is to ensure that people remain careful when entering installment agreements.
Always read the terms carefully, protect your financial rights, and seek legal advice when necessary.
Thank you for your time.