Civil Procedure Code (CPC)

Credit Card Dispute.

This query is : Resolved 
 



Guest (Querist)
22 November 2010

Dear Learned Friends,

Subject to your time, convenience and availability, please advise me on the following :

Facts :

A friend of mine was using SBI Credit Card and due to deficiency of service by the bank, settled the card account by reaching one time settlement of Rs.41258/- as advised by the bank official. As advised by the bank official, amount was paid in two installments and thus, the account was settled on 26.03.2004 (i.e. 2nd installment cheque date).

As my friend was not aware of the bank’s settlement procedures, neither he did collect any specific letter for the one time settlement nor did the banker provide the letter. Thereafter, my friend did not receive phone call from the bank and nobody visited his residence / office.

After 18 months, the bank’s advocate sent a letter under instructions from his client to make a sum of Rs.15,661.83 as on 22.09.05.

Immediately a suitable reply was sent to the Advocate explaining the facts. Thereafter, there was no reply from the bank’s Advocate.

My friend concluded that the matter has been treated as CLOSED by the bank, as there was no call from the bank.


Now, the bank is insisting to make payment (which is not informed), otherwise, the action shall be taken against my friend.

Query

Based on the above facts, what merit available to my friend and how can he establish that he has reached one time settlement (and already made the payment) in the absence of letter.

Ans : ........................


What action can the bank initiate against my friend for claiming INAPPLICABLE AMOUNT for the already settled card account ?

Ans : ..........................


I shall wait for your guidance on the matter.

Thanks.
D.KARTHIKEYAN.


Parthasarathi Loganathan (Expert)
22 November 2010

Could you please post us the details of the one-time settlement of Rs.41258/- as advised by the bank official?

Advocate. Arunagiri (Expert)
22 November 2010

Without any letter for settlement how it was settled. Is there any word mentioning as settlement in the receipt.
In the absence of the above, You can try to quote other's settlement in the similar situation.
What is the total amount o/s, what is the principal amount, how much paid as settlement will help you to establish your case.
It is true that many of the bankers following the same strategy.

Raj Kumar MakkadOnline (Expert)
22 November 2010

I do agree with Arungiri

Kirti Kar TripathiOnline (Expert)
22 November 2010

i also concur with Arun.



Guest (Querist)
22 November 2010

Dear All Learned Friends,

Thank you for your responses.

The unfortunate situation was that my friend did not know about the letter for the settlement and the moment bank official confirmed him that he would be safe (and free from all nuisances) once he settled the amount as per his words.

My friend fully trusted his words and immediately made the payment by way of two cheques.

Thereafter, he did not maintain any communication / statement and even destroyed the old papers including statements.

Now, he has got the details of his cheques issued for the last two installments pertaining to the one time settlement.

Along with the details of cheques, he is keeping only the Advocate's letter (for the amount Rs.15,661.83 as on 22.09.05) and his reply to the Advocate explaining the facts about the settlement. He is not having any documents other than these two.

IS THERE ANY WAY TO DEFEND HIM UNDER LAW FROM THE INAPPLICABLE CLAIM OF THE BANK ?

WHAT IS THE EXTREME ACTION THAT THE BANK CAN INITIATE AGAINST MY FRIEND, IF HE IS NOT MAKING THE INAPPLICABLE CLAIM OF THE BANK ?

Please advise so that I will support and find ways to protect my friend.





Khaleel Ahmed (Expert)
22 November 2010

A settlement deed should have executed by both parties before the clearance of loan.The Banker can file suit for recovery of loan amount against your friend.

Mukul Aggarwal (Expert)
22 November 2010

Dear Karthikeyan,

As per the facts narrated by you, it seems that this recovery is time barred and bank can not take any action against your friend as it is more than 7 years old due further your admission was also 5 years old therefore you need not to worry. you can complaint nearby police station if bank official threaten you.

Mukul Aggarwal (Expert)
22 November 2010

it seems that your friend is soft person so they are taking advantage of him and threating him..he should not be afraid and refused to pay any amount..

s.subramanian (Expert)
22 November 2010

your friend has been taken for a ride by the bank officer who instigated him to make the payments. Nothing can be done at this stage. Your friend has to pay the balance and get rid of the bother.The plea of one time settlement assured by the bank officer without and approval for the same by the bank cannot be taken by your firend before any court. Even is such a plea is taken,the courts will not accpet the same.

Parthasarathi Loganathan (Expert)
22 November 2010

Mr.S.Subramanian's advice is the most practical one. You have to exhaust all methods to reach an amicable settlement with the bank. Legal recourse will never benefit both sides.

malipeddi jaggaraoOnline (Expert)
24 November 2010

I agree with Shri Gopal Soni. Please gothrough the website of the Bank and pick up the details of nominated CPIO and seek the information.
a) Full particulars of Credit Card usage
b) The details of repayments date-wise made in the account.
c) The correspondence demanding repayment of outstanding dues and your friend's reply during the particular period when he made the repayment believing it as one time settlement.
d) Ask for a copy of compromise/one time settlment arrived between your friend and the Bank (though you do not have a copy, or for that matter the Bank also might not have it)during March 2004.
e) The Bank's guidelines for settlement of Credit Card dues (applicable at that time i.e., as of March 2004)
d) The details of principal liability and interest liability.
e) The rate of interest and mode of compounding te interest.
This will enable you to ascertain the interest portion.
What might have exactly happened is - the concerned officer would have puruaded your friend to pay that certain amount as it would have come under the guidelines for settlement of credit card dues at that time. But after receiving payment he mightnot have put up the proper sanction memo.
The information obtained under RTI will be useful to defend the court case if the Bank decided to file suit.
In the meanwhile advise your friend to write back to the Bank under RAD stating that he has paid all the dues under the credit card as agreed upon in March 2004 and there are no dues pending in the credit card account demanding a copy of credit card account giving full particulars of the amounts utilised.Also write to them that u are seeking information from the Bank under RTI Act. The amount that is being presently demanded by the Bank might be nothing but exorbitant interest on the residual amount left over at the time of payment in March 2004. When you start tackling the issue seriously on the above grounds Bank may give up its claim. Even if it opts for filing a case, there would be fair chances for your friend for extinguisition of the liability as the liability might be representing exorbitant interest charged.



Guest (Querist)
24 November 2010

Dear All Learned Friends,

Thanks for your support and valuable advise.

The bank has taken advantage of the ignorance of my friend.

With all your guidance, I am going to take up the matter and fight for the right.

- - - - - - -

Though I am not a professional, I have seen in my personal experiences various credit card issuers' negligence and their irresponsibility. In fact, ABN-AMRO (now RBS) Bank is chasing me for outstanding amount and according to me, the matter was already settled in the year 2005 and I still possess all my communications including the settlement letter of the bank perfectly in a file. It seems the bank has no record.

The bank persons used to call me at least once in a couple of months and I always insist to them to express their inability (in writing) in finding out the papers related to my account so that I will help them in resolving the issue and that too with a fee from the bank for my service. Really, I am expecting the bank to show their negligence towards me so that I will have an opportunity to challenge the matter.

- - - - - - -

Now, with your guidance, I am going to step ahead and act as a representative for my friend.

Thank you all and if any of you have come across the similar situation or handled the similar cases, please share your experiences so that it will help the needy people.

Thanks once again.
D.KARTHIKEYAN.

Devajyoti BarmanOnline (Expert)
25 November 2010

yes, You can fle complant under Consumer Protection Act also for such unfair trade practice.



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