Limitation for credit card

Credit card payment???? please narrate the incident properly.

Regards

My client applied for a credit card in the year 2008. He quit his job before reciving the card. Now he joined a new company and oppened a bank account with same bank and diffrent branch, his salary was credited into that account. The bank put a hold on the entire salary saying that it has exercised bankers lien and cross default clause of card members agreement. My client has send a letter to the bank asking for the caerd member agreement and statement of credit card.But there was no reply from the bank. Apart from that they have debited the amount into credit acrd account. My question is wether limitation act applies to this credit card transaction?

If so please provide me with precedents.

Dear Pavan,

As you have mentioned that the Client had quit the company before receiving the Card. So just by issuing a card, bank cannot take the lien on the  Salary account of your client. Did your client used the card and made any transaction through it???? if, yes whether your client defaulted in the payment.

Otherwiser bank cannot lien on the bank account of the customer without any payment default of the customer.

Regards,

Credit card is usually dispatched by a courier of repute e.g. blue dart and is to be handed over to the card member and if it is handed over to any one else his ID e.g. voter card, DL, pan card is to be checked and noted in run sheet of courier carried by delivery boy of courier. After the delivery boy’s report card is activated. You may ask for POD and recipient’s ID number as seen and verified by courier/delivery agency employed by courier.

Did you provide office address as address for correspondence? If yes you are also duty bound to update new address with CC Company.

Did you sign acceptance of annual charges for card membership? If yes these charges have accrued.

Did the CC Company supply any notice before creating lien, or reporting your name in list of defaulters in credit rating agencies?

Did you provide permanent t address also and phone numbers in CC issuance form? If yes did the company supply any notice at permanent address or made any phone calls? After all your office must have returned your mail/courier etc. If not who continued to receive your mail?

CC Company had your new address while opening a/c, comparing your credentials with default a/c and creating lien. Why it did not contact you at new address phone numbers mentioned in bank a/c?

You are within your rights to obtain copy of CC application form and all T&C signed and accepted by you.

Thanks a lot rohit and Kumar. I had requested the bank on behalf of my client for statement and copy of card member agreement. The day they recived the letter, they have debited the withheld amount to credit account. they didnot reply at all. They orally conveyed my client that there was a single transaction of 60000 from the card and since then they have been corresponding to the adress of client. all the statements which were returned back. My client was living in the same adress for past 30years and no such statements were recieved by him. what are the remedies available for my client as he is going to recieve his salary through the same account? Please guide me at the earliest possible.

If the client has transacted for Rs.60000/ and has signed the charge slip the client has to make the payment. The client has the right to obtain certified copy of charge slip. CC Company must have printed the charges for obtaining copy of charge slip on its bill and must have posted at its website.

In case the client is disputing the transaction citing the CC was not delivered to him the transaction has been a fraud and company is expected to conduct inquiry and report the facts to client. Client can lodge a police complaint citing company is claiming a payment and is not providing any supporting documents and company is custodian of all record.

“The day they recived the letter, they have debited the withheld amount to credit

account. “

The credit given to client is provisional and can be reversed after the inquiry by the company is over.

Client may cancel the salary a/c and may open another a/c in some other bank. Some employers are touch about credit ranking and history of their employees so tread carefully. Majority of the employers offer choice of banks to choose from for opening salary a/c.

It is felt that limitation period is 3 years however the communications exchanged, acknowledgment of dues etc may lead of condo nation of delay. 

Opinion from a competent and experienced lawyer may be obtained.

“they didnot reply at all”

They usually do not reply at all in writing. However if the client and you persist you may succeed in extracting a written reply. It shall be pertinent to mention that you may ensure that client is truthful to you, and is not asking for limitation period to evade payment.

If client has not in fact received the CC client can agitate that he is being defrauded.

If client had provided the phone number in CC issuance form then after delivery company calls the customer to confirm the delivery. Call log data is retained by CC Company and you may obtain it.

“My client was living in the same adress for past 30years and no such statements were recieved by him.”

You and the client must obtain the certified copies of communications, statements/bills, POD of CC, proof of non delivery and return of the cover back to CC Company by way of a confirmation by courier or Post Office and establish that at which address CC and covers were sent and company is making true or false statements.

Before sending the name to collection, recovery agencies, company has to try and contact the customer and personnel in the company have to file a repot who tried to contact at which phone number, address etc. Hence you may demand call log data and physical visit report of the personnel of the company and its agencies. After collection and recovery agencies have failed company may issue notice, legal notice, and may approach court of law. You may demand certified copies of these as well. If company is adopting tantrums you may supply a postage prepaid self addressed envelope (as purchased from PO) under proper acknowledgment,to supply all details, certified copies with a deadline as decided by you.

If the CC Company writes off the payment it shall continue to reflect in credit history of client maintained with credit rating agencies and CC Company may send name of client foe inclusion in list of defaulters maintained with these agencies and MCNF (Master Card negative feedback List). Written Off is a default status. This shall continue to haunt the client. Hence you may demand the copy of communications sent by CC Company to credit rating agencies and MCNF and demand that company tenders apology in writing and calls back the name of client under copy to you, and updates the status with these agencies as “by error and fault of company”. If you do not agitate company shall not update the status as its fault. CC Company usually adopts tactics and compels the client to approach courts of law after order of court updates the status as per court order, which some of the institutions find repelling and burden once again shifts to client for justifications. If the fault has been at the end of company onus and future liability should remain on company. Be strict and you shall succeed. Demand a statement from company that due to this episode if there is any adverse affect on client company shall be responsible to compensate the client and client can sue the CC Company.

Kindly look into the attachments.

Kindly look into the attachments.

Credit rating agencies;

CIBIL, Equifax,Experian

and then MCNF mainatains list of CC defaulters.

Some of the consumer support organisation which help the customer/citizens.

https://www.mouthshut.com/

complaint@network18online.com

pehredar@moneycontrol.com

pehredar@network18online.com

https://www.facebook.com/Pehredar

www.grahakseva.com/

Thanks alot Kumar

Thanks alot Kumar for your timely reply.

·      CIBIL – Credit Information Bureau (India) Limited (www.cibil.com)

·      Experian - Experian Credit Information Company of India Private Limited (www.experian.in)

·      Equifax - Equifax Credit Information Services Private Limited (www.equifax.com)

·      MCNF database (Master Card Negative Feedback)

Whenever you apply for a loan or a finance product, the lender retrieve your credit report from at least one of the three major credit bureaus. There are several other small bureaus as well like Satyam who used to maintain the date base of defaulters for over a decade now. However today majority of the financial institutions refer to one of the 3 major credit bureaus as mentioned above.

As per CIBIL status includes:

Status: Options include: Suit filed, Willful default, Suit filed (Willful Default), Written off, Suit filed and written off, Willful default and written off, and Suit filed (willful default) and written off.