Credit card default // recovery timeline by the bank
Raj
(Querist) 10 October 2018
This query is : Resolved
Hi,
DB had issued a credit card to me in year 2007, Bangalore, Karnataka. At that time, I had a total of 3 credit cards - so I decided to close DB card for good. I made final bill payment by means of cash - cash was collected by their collection agent - and closed the card for good.
As I grew professionally, I decided not to keep too many cards and closed Citi card as well - no dues. Now, only left with ICICI card.
In December last year (2017), I needed to borrow money / personal loan to treat a family member and my application was denied by the bank stating low credit scores. I was shocked to learn this news. I made use an online website to source my credit scores - by this way, I realized that IndusInd bank has marked me as a "willful defaulter" of 5L+ rupees.
I immediately wrote to their nodal officer. Their reply was even more shocking to me - they said, they have taken over credit card business of DB in year 2011 and that I had not cleared the final bill of 29000 with DB, which is now 5L+ with interest.
I have informed them that I had made all payments in 2008 / 2009. Now, unfortunately, I do not have any payment receipts with me since it is almost 10+ years old. Either the person that collected money from me did not close the account properly or during their merger of two companies something technically could have gone wrong - I don't know, and them do not agreeing to this. I am now getting calls from recovery people demanding 5L+ rupees from me.
I am a tax paying, responsible citizen and never ever defaulted with any financial institutions whatsoever - be it a CC and previous loan that I had. Obviously, I can't be forced to pay 5L+, and I can't afford to do so either.
What are my options? Requesting for a detailed guidance, please.
1. Can the bank / recovery team file a criminal case against me in court? They said they will.
2. Can the bank / recovery team file a complaint against me with police and arrest me? They said they will.
3. Are there any particular RBI guidelines that I can refer? Please share website links for reference.
4. Are these any cases from the history where courts may have passed certain judgements? Please share details.
As per them, principal amount is 29,000/- and along with interest over 10+ years, they are demanding 5,45,000/-. And this keeps increasing every month.
Kindly guide.
Sudhir Kumar, Advocate
(Expert) 11 October 2018
No criminal case can be filed unless you have signed some cheque and the same is bounced.
Civil suit can be filed if within limitation.
Raj
(Querist) 11 October 2018
@Sudhit Kumar: Thank you for replying. Your guidance is not very clear - especially on the "limitation". I have drafted my entire situation, along with details such as the amount involve and timeline as well.
It would be a great help if guidance were in details.
Thanks again
Sudhir Kumar, Advocate
(Expert) 11 October 2018
if your liability is more than three years ole and if you have not acknowledged your liability within last three years then it is not possible to file civil suit.
Raj
(Querist) 14 October 2018
Thank you - however, I am not able to understand what my options are with your brief responses. Anyways, thanks for taking time to reply.
sachin sharma
(Expert) 17 October 2018
No worries. Recovery suit can be filed withing 3 years only.
Sudhir Kumar, Advocate
(Expert) 18 October 2018
If you acknowledge the debt now then civil suit can be filed within three years from now.
Raj
(Querist) 18 October 2018
@Sudhir Kumar: No, Sir. I have not acknowledged any debt. at all. From the time I have learnt about this incident, I have always written to them stating all bills were cleared already and nothing was pending.
I have never acknowledged any debt. for I don't have any. I have already paid during 2008 / 2009. They either missed adding it to their books or something could have gone wrong during their merger.
Raj
(Querist) 18 October 2018
@Sudhir Kumar: Why will I pay when I don�t have any due? How is that an acknowledging of debt when I don�t have any dues?
Raj
(Querist) 18 October 2018
Acknowledgement of due meaning when one accepts due - isn�t it?
Sudhir Kumar, Advocate
(Expert) 28 March 2020
Yes. By acknowledgement of due you are giving him license to sue you within three years.
