MAKKAH: Two Saudi brothers and their families, consisting of 16 members, have been forced on to the streets after being evicted from their home.
The families were evicted after a local bank won a case against them and seized their home. The case centered on the younger brother’s refusal to pay SR2 million in interest on a SR100,000 loan he took 28 years ago. The house will be auctioned next week.
The brothers lived in Al-Jumaizah neighborhood in a house that was divided into two living quarters. When the younger brother applied for a loan 28 years ago, the bank asked for his house deeds to complete the loan procedure and assured him that the deeds were taken as part of a procedure and not as a loan guarantee. “My young brother took a SR100,000 loan from a bank 28 years ago. He was then sent to jail after two years for not paying it back,” said Ramadan, who is over 60 and the head of the two families. “The bank demanded that he pay SR850,000, which included the initial loan and interest. My brother was released after I guaranteed he would pay,” he added. Four months after his release, the younger brother paid SR100,000 and then refused to pay the interest.
The bank, however, asked for the outstanding balance, and filed a lawsuit demanding Ramadan be penalized as he guaranteed his brother would pay the entire sum.
Ramadan was taken to jail and then released four months later in a royal pardon during Ramadan. The pardon also stated that people in prison because of outstanding debts were to be released and that the government would pay half their debts if the creditors dropped half of their claims.
The bank, however, refused to cancel half of the debt and went to court in 1987.
When Ramadan visited the governorate office to check on the case, he was told it was closed and the bank should come and collect its check if it would cancel half the debt.
The bank then filed a lawsuit last year against the younger brother demanding the same amount, SR750, 000. The bank also claimed that the younger brother withdrew SR2.3 million from his account at the bank and that his total deposits at the bank was SR1.7 million.
When the judge demanded to see proof of this, the bank was unable to present anything. The brother then presented documents that he had deposited SR353,000 at the bank.
After many hearings, the judge ruled that the brother had to pay SR597,000 to the bank in cash and that failure to pay would result in their house being seized.
The family has since been evicted and forced to sleep in the Grand Mosque for some days. They are currently living with relatives.
