legal demand notice
Querist :
Anonymous
(Querist) 26 February 2011
This query is : Resolved
DEAR SIR,
what is the meaning of legal demand notice. when does bank sends legal demand notice. what is the impact and consequences if we do not reply to legal demand notice. Should we reply to legal demand notice which is send through a EMAIL.
Devajyoti Barman
(Expert) 26 February 2011
Be clear. Indicate what sort of legal notice was that.
Parveen Kr. Aggarwal
(Expert) 27 February 2011
Legal Demand Notice is a notice of demand served by the bank with regard to the amount due and payable by a debtor to the bank. The bank makes demand of the due amount through it and is a sort of warning that in case the debtor fails to make payment, the bank will initiate proceedings in the courts of law. It is not necessary to reply a legal notice. A person not replying such a notice can take all the available pleas in the court of law. If you have strong grounds to rebut it, you should reply it.
Querist :
Anonymous
(Querist) 28 February 2011
Pls find below the legal demand notice. I have heard that bank normally keep on sending such notices. what is the impact and consequences of this letter. I m not paying my dues from last 2 yrs due to bad financial conditions.
DEMAND LEGAL NOTICE
Dear Sir/Madam,
Re.: Overdues of Rs. 000.00 in respect xyz bank Credit Card 123.
Under the instructions from our client xyz bank., a banking company incorporated under the Companies Act and having its Corporate office at delhi and one of its branch office at xyz bank , we serve upon you the following notice :
1.The said Card was issued to you and since then you have been utilising the Credit facility. As a user of the said card, you are aware, that a card Member who utilises the credit card is ultimately liable to pay to the Bank, entire amount that falls due on the utilisation of the said card. If the card member pays the said amount within the due date, he need not pay any amount other than the actual amount incurred by him while using the credit card. But if the card member fails and neglects to pay the said overdue amount within specified due dates, the card member is liable to pay interest & other charges applicable thereon on the said unpaid amount. You are aware that all these aspects have been clearly and more particularly mentioned in the Welcome Booklet containing the terms & conditions governing the usage of the said card.
2. It is pertinent to note that you were not making the requisite payment within the stipulated due date and the payments made by you were insufficient to cover the monthly outstanding amount due and payable by you, due to which, appropriate charges, interest and statutory taxes have been levied on your credit card account. You are requested to refer your Monthly Statement of the said card in this regard.
3. Further, my client states that their officials were constantly following up with you for clearing the outstanding dues. However, you have not responded to any of my Client's request for clearing the dues nor you have cleared any payment towards the outstanding dues.
4. My client wish to inform you that as per Monthly Statement of Account dated…., there was an outstanding amount of Rs. 0.00 due and payable by you. Kindly note that despite having been given sufficient time and opportunity, you have failed and neglected to clear your outstanding dues under the said card facility, which were payable on demand. Further, you may note that you have also not responded to the intimations and correspondences sent to you, reminding you for making payment of outstanding dues or minimum amount dues.
5. You may note that the said credit card is the "absolute property" of my Client, in respect to which you were required to abide by the terms and conditions of the Bank. By misusing the said Credit Card, you have illegally and unjustly enriched yourself at the cost of my client. My client represents to us that as against the promise made by you, you have become a gross defaulter and intentional default on your part in not paying the amount utilised by you, had caused considerable loss to my client.
6. As per current monthly statement of account dated …., there is a current outstanding of Rs. 0.00 which you were requested to pay at the earliest, within 7 days of receipt of this notice through this mail, failing which we have been peremptorily instructed by my clients to initiate suitable legal action against you entirely at your risk, costs incurred therein and the consequences thereof.
7. In addition to this, my clients reserve their right to blacklist your name with Master and Visa Franchise and also with other Banks and Non-Banking Financial Institution to safeguard their interest. My client states that it may provide information to credit history or your repayment record to a Credit Information Company like Credit Information Bureau of India Ltd (CIBIL). Further, my client also reserves their right to publish your photograph in the newspaper to create awareness amongst the public at large about your intention to default.
8. You may note that no further notice will be given to you in this regard and after the expiry of 7 (seven) days from the date of receipt of this notice, appropriate legal action will be initiated. Hence, we look forward to complete co-operation from your side.
9. Without prejudice to the aforesaid, considering my client's service gesture and to avoid unpleasant legal actions, you may feel free to contact xyz.
