You need to cut a diamond with a diamond. Stop paying the loan. You should have issued cheques. Issue stop payment notice to your bank. Send a letter to your bank telling them what wrong they have done. Calculate what you need to pay back which you think is fair. Enclose a cheque for that amount with the letter and send it to the bank. Tell them if they encash that cheque, they have agreed that this is the amount towards full and final settlement. When your intentions are genuine, it is OK to use hardball attitude when you get such shabby treatment. The law allows it. In criminal language, it is called the right to self defence.
