without being transferred, that's illegal...Doha bank can sue him...

Regarding your questions:

1. As far as I know, All loans has insurance... If I am not mistaken they will be the one who will pay for the remaining loan...else the company...

2. Maybe they are just harassing your friend... labor department is the answer :D...Trying is better than doing nothing :D

" AN END DOES NOT JUSTIFY THE MEANS "