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Citi bank lien

(Querist) 07 October 2015 This query is : Resolved 
Respected experts,

My name is Shanti agarwal. Five years back i had a credit card. The limit of credit card was 15000/-. I paid around 18-20k at that time and after that stopped paying and shifted to a new city.
My question is now after 5 years citi bank has put a lien of Rs 45000/- on my hdfc account. Can a third party bank has the right to do so. I was aware that only the mother bank ( i mean citi bank will put lien only on his bank account) can do so. How Can citi bank can put lien on my hdfc account. Is it right lawfully??
Kindly guide on this please.
Shanti Agarwal.
Sudhir Kumar, Advocate (Expert) 07 October 2015
ASk HDFC Bank if they have court order.
pipersenacapa123 (Querist) 07 October 2015
Thank you sir but please let me know can with court orders they can go do this? Plus I have heard of time limitation/barred of debt too. I have never acknowledged anything, they have been sending emailers of statements every month but I have not acknowledged any thing. pls guide
pipersenacapa123 (Querist) 07 October 2015
I am requesting other experts to kindly guide me on this.
SAINATH DEVALLA (Expert) 07 October 2015
NO CITI BANK CANNOT FREEZE UR ACCOUNT IN HDFC BANK UNLESS THEY HAVE A COURT ORDER TO DO SO.FIRST THING IS U HAVE NOT MENTIONED WHEN U ACTUALLY DEFAULTED UR PAYMENT FOR LAW OF LIMITATION TO COME INTO PICTURE.


FOR KNOWLEDGE SAKE GO THROUGH THE BELOW MENTIONED ARTICLE PUBLISHED IN ECONOMIC TIMES:

Loan defaults: Banks can take your cash from account

Tags:
savings|Loan|fixed|default|Bank|Account

Did you know that banks can hold your money hostage? Well, they can, and the ransom you have to pay to get your money back: clear all outstanding dues. Banks have devised a clever way of ensuring that customers clear credit card dues and repay loans on time. If you default for several months, the bank can deduct money from your savings accounts or refuse to pay money from the fixed deposit when it matures.


No, banks aren't trying to con you. What they are doing is perfectly legal. In fact, they have your permission to do so. You don't remember giving it, do you? But you did when you signed on the dotted line while availing of the loan or the credit card and accepted the terms and conditions (T&C).

The fine print will have a statement similar to this: "I hereby grant and confirm the existence of the right of lien and set-off with the Bank, which it may use anytime to utilise any money belonging to me and deposited with the bank, towards any outstanding dues".

All this legalese simply means that the bank has the right to deduct money from your account. "Any collateral that the bank can legitimately hold can be held back. Even FDs can be used," says Harsh Roongta, CEO, Apnapaisa.com. Of course, if your T&C does not state this, the bank cannot touch your money.

Says Kishori Udeshi, chairman of the Banking Codes and Standards Board of India that lays down the code of conduct for bankers: "Banks can't debit unless you agreed that such measure can be taken while taking a loan. However, if you have signed on the loan contract and it mentions that the assets can be adjusted, then they can."

So, if you aren't careful about clearing all your dues with the bank, you might find yourself bankrupt, literally, as Ashish Jha (name changed) discovered last year. For the Mumbai-based script writer, 2010 began with a financial blow. He had outstanding dues of Rs 90,000 on his credit card and had lost his job.

In April, he asked a friend to lend him some money, who transferred it to Jha's account. When Jha went to withdraw the money, he found that the bank had deducted the whole amount as payment towards the credit card dues. A few months later, Jha deposited a cheque of Rs 35,000 in the bank that he received as payment for writing assignments. This too was appropriated by the bank.

If you think you can avoid such a situation by opening a second account, you still won't be able to get away. You can't default on one account and get away by keeping to the straight and narrow on the other. Take the case of Sumit Shah (name changed), who had taken a loan against gold from Canara Bank.

Even when he repaid the entire loan, he could not get the jewellery back as he was defaulting on a different loan that he had taken from another branch of the bank. Similarly, Charan Singh Guha too had to lose out on his savings. When Punjab National Bank withdrew money from his account, the banking ombudsman upheld the bank's right to do so as Guha was the guarantor of a loan that had not been repaid by the borrower.

pipersenacapa123 (Querist) 07 October 2015
Sir thank you for your guidance.
The last payment made on this credit card was 2009 after that they have been sending statments on my mail id but i have not acknowledged anything in oral or writing. so its been more than 5 years now.
Second query is, sir what is this court order, i mean is the sec 83 to attach the movable or immovable property?
Pls guide.
SAINATH DEVALLA (Expert) 07 October 2015
Actually Banks cannot file criminal cases for credit card default.They can do so for personal loans,because post dated cheques or colletaral security are involved.Hence appeal at the banking ambudsman in your city.HDFC bank cannot directly put a lien for UR citi bank liability without intimating U.Its against the RBI rules.They can do so only if U default payment of any liability to their bank.Hence something has happened without UR notice.Section 83 crpc deals with the attachment of property of an absconder.
Anirudh (Expert) 07 October 2015
Regarding Acknowledgement - you say "I have never acknowledged anything".

But you also say: "they have been sending emailers of statements every month but I have not acknowledged any thing."

But did you object to the statement? If not, does that not amount to impliedly accepting the same?
Kumar Doab (Expert) 07 October 2015
The lien is created by M/s HDFC bank.


You have all the right to ask M/s HDFC bank to vacate the lien, in writing(under proper acknowledgment).



If M/s HDFC ban resorts to verbal reply you have the right ( exercise in writing under proper acknowledgment)to demand to supply the reply and substantiating documents by Redg. Post.



M/s HDFC Bank is under obligation to supply everything to you.



Once you have the written reply show it to your able lawyer specializing in banking/consumer matters and understand the merits and remedies.
pipersenacapa123 (Querist) 08 October 2015
Respected members thanks for your guidance. One query is, as stated by Sainath sir " Actually Banks cannot file criminal cases for credit card default". But they have taken court order for the same to put lien as told by experts. Can you please some light on what type of court order this would be and what sections would be involved in this to obtain such order. Thanks.
SAINATH DEVALLA (Expert) 08 October 2015
Do U remember giving a cheque for UR periodic payment to any of the collection executive?
SAINATH DEVALLA (Expert) 08 October 2015

The time limit as per the Limitation Act,1963 to enforce by way of suit in a court of law is three years from the date of your indebtedness and from the date when it was payable by you. The Bank cannot enforce the claim after the expiry of the said period.


pipersenacapa123 (Querist) 08 October 2015
Yes i had given a cheque but it was way back in 2009.
SAINATH DEVALLA (Expert) 08 October 2015
Thats it,there they have trapped U and made use of the cheque.It must have been undated.They must have presented the cheque for payment later on and it would have naturally bounced.Because unless there is a court order liability of another bank cannot be put on lien in Ur new bank.
P. Venu (Expert) 08 October 2015
The real issue is whether there was a court order. In spite of long and winding explanations, the queriest is less than forthright in providing this simple and straight forward information.

As regards to the enlghtening suggestions from the learned expert Sinath Devalla, it is my considered opinion that the T & C, even if blindly accepted, amounts to nothing more than a contract and is enforceable only if there is a decree to that effect from a Competent Court; a party to a contract have only rights, no powers.
Kumar Doab (Expert) 08 October 2015
I wholeheartedly appreciate the last/above post and contents in the post of Expert Shri P.Venu.



The querist has not at all stated in any of the posts has he/she written to M/s HDFC Bank, and what is the reply of the M/s HDFC Bank?




The querist has to write to M/s HDFC Bank, and obtain reply and substantiating documents from M/s HDFC Bank!



M/s HDFC Bank can not decline to explain.



The querist need to show every document on record to his/her able counsel and the able counsel can comment on wholesome defects in the action(s) of the bank and advise on the merits and remedies to the querist.





SAINATH DEVALLA (Expert) 08 October 2015
I think the querist has received ample suggestions and advices by now paving the way for concluding the query.
Kumar Doab (Expert) 08 October 2015
Yes that's correct
Rajendra K Goyal (Expert) 09 October 2015
You can file consumer complaint against HDFC Bank.
Kumar Doab (Expert) 09 October 2015
Certainly if M/s HDFC Bank is deficient in any manner on any applicable rules the customer/consumer can lodge consumer complaint.


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