In 2003, I held a credit card that I never used. The card was stolen and misused, resulting in an outstanding amount of ₹30,000. I got to know of the theft on receiving bank statement of Rs 30000 and I immediately filed a First Information Report (FIR) with the police and disputed the transactions with the bank. The bank ignored my dispute and the FIR, instead sending transaction slips lacking my valid signature. I refused to pay and requested verification and CCTV footage from the merchant locations, which the bank failed to provide. They continued sending demand statements with added interest and arrear charges. In 2010, the bank sold my account to a collection company. Now, in 2025, the collection company is demanding ₹3.5 lakhs, claiming the original ₹30,000 has ballooned to this amount. They also sent me a legal notice in April 2025 demanding the Rs 3.5 lakhs to be paid within 7 days else they will proceed with further legal or criminal actions. I am seeking ways to safeguard myself and resolve this issue, especially considering I never used the card and reported the crime. Can the collection company file legal notice? Am I bound to pay even though I have not committed crime ?
