Consumer Redressal

Dear Sir I am from Mumbai and hold an endowment policy which i had hypotheticed for loan from Credit Co-operative Society. However i had completed my loan repayment -somewhere in 2011. I had no outstanding with the said Credit Society on my account. However i was guarantor for one of the members so they did not give my policy as the member defaulted the payment. The loanee was not absconding and was in regular touch with them for the repayment issue. I wanted to know how they can surrender my policy for his loan and can they do so because i had pledged my policy for my loan and not for his loan. The defaulter was ready to pay them monthly installment but they were insisting to pay in three installments and said if he does not pay they will surrender my policy. My query is can they surrender the policy which i pledged for my loan and not for the member if not then does this means they have used fraudulent method for surrendering the policy to LIC as it was pledged for my loan, kindl