Commercial bank scheduled in Pakistan being regulated by State Bank of Pakistan offer several abundant finance facilities to customers based on their personal as well as business needs. However, during the processing and sanctioning of finance facilities different illegal modes are adopted by banks to secure their transactions and nevertheless take undue advantage over customers through several concealed stipulations not read and consented to by the customer or charging of illegal mark-up, penalties, and other charges which are considered illegal by law ending to committing of default by Customer, following which matter shapes up into litigation. For the purpose to protect the rights of customers several laws in Pakistan had been incorporated from time to time against illegal banking practice adopted in Pakistan to defraud customers.