Credit card

Querist : Anonymous (Querist) 22 January 2012 This query is : Resolved
My friend was working in a Pvt sector bank which was merged into a bigger pvt sector bank. After a few years he was forced to take VRS. While working at the Bank, he had a credit card of the bank and the payments used to be deducted from the savings bank account in the Bank.

After retirement, the same savings account was used for credit of his pension paid by the bank. His card payment was overdue and so the bank began deducting his entire pension towards credit card outstanding and every month, the bank kept adding service charge, interest etc. The bank has been so brutal that it has been deducting the entire pension credited into the account without leaving any balance for his sustenance. Upto now the bank has adjusted nearly Rs 1.40 lacs from the account against a dues of about Rs 45000/-. Can the bank exercise lien on the savings account, which is now a pension account. What is his remedy as the bank is continuing such action

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V R SHROFF (Expert) 22 January 2012
As u availed service of Credit Card, u have to pay for it too.
Who stopped you cancelling credit card facility???

ajay sethi (Expert) 22 January 2012
you have failed to mention what were the outstanding dues on credit card?

have you paid your credit card dues on time ?

if you have failed to pay outstanding dues bank is authorised to rcover the OS with interest and penalty as per the agreement signed by you with bank .

you have authorised the bank to deduct amount from your savings account .it hardly lies in your mouth to complain about actions of bank when you have been a defaulter .

prabhakar singh (Expert) 22 January 2012
no more to add

M/s. Y-not legal services (Expert) 22 January 2012
since your query with insufficient particulars, am agree with ajay sir..

-tom-

Raj Kumar Makkad (Expert) 22 January 2012
I endorse the views already expresed.

Sudhir Kumar, Advocate (Expert) 28 January 2012
Dues cannot be rrecovered from pension. But pension amount once credited to Bank account is a deposit so dues have been recovered from there. You friend is neither paying the dues nor contacting for settlement. Can he not opn this pension account inanother Bank.