Recovery of credit card dues
kanwal mehta
(Querist) 13 March 2012
This query is : Resolved
i had a credit card in the year 2006 which i defaulted as i am now a house wife and have not made a payment since 2009 i received a call stating that the bank will issue a non bailable warrant . can the bank do so?
ajay sethi
(Expert) 13 March 2012
bank must have filed criminal case against you . have you been served with any summons?
if you dont attend court then bailable /non bailable warrants will be issued
SAINATH DEVALLA
(Expert) 13 March 2012
Kanwal Mehtaji,
The credit card recovery agencies are playing a lot of mischief with the defaulters.Though the concerned bank is not directly involved,these agencies manage the entire afair with the police,they select one bench in the lower court for their cases,wherein they manage to get favourable decisions.They even manage the respective post offices so that the summons are not served and suddenly they arrive someday with an NBW.
Even if you are a defaulter,you have to be in touch with your credit card account.Never issue cheques as part payments.Once you issue a cheque and it bounces,your problems escalate.As far as credit cards are concerned yopu can go scotfree in courts and it is different with personal loans.
Though cannot be ignored,these calls could be threatning calls.Don't answer them.
Deepak Nair
(Expert) 13 March 2012
No. The bank cannot issue a non-baillable warrant.
Summons and warrants are issued only by the court of law and not banks.
These are pressure tactics by the bank employees to recover the money.
But, if the banks had initiated any legal action and if you failed to attend court even after serving the summons, then the court can issue warrant.
In your case, it is better to contact the bank and close the issue by way of amicable settlement.
kanwal mehta
(Querist) 14 March 2012
i have not received any summons , if the letters have been returned as "left" then still can they issue a warrant? Is there any limitation period within which the banks can keep collecting ? i read somewhere that there is a limitation period of 3 years of acknowledging of the debt that they can continue to collect. After which they cannot. Is it true.
Deepak Nair
(Expert) 14 March 2012
If the summons is returned with remark 'Left', then it is not a valid service. But if the remark is "Intimation Posted - Not claimed", then it will be considered as a valid service.
Any way, warrants are not issued in recovery proceedings. If you fail to attend, the court will proceed ex-parte.
The information regarding 3 years limitation period is right.
SAINATH DEVALLA
(Expert) 15 March 2012
Dear Kanwal Mehtaji,
As I mentioned earlier,I have come across similiar cases.X had given a cheque for Rs.5000/- as part payment,unable to bear the harassment of the recovery agents and subsequently the cheque got dishonoured.After nearly one year surprisingly he received summons from 14CMM court Bengaluru,that a case U/S 138 had been filed in the respective court by the concerned bank.Initially he had to spend Rs10000/- going to Bengaluru entrusting the case to a local advocate.The person stays at Visakhapatnam.They can present the cheque anywhere in India .The cheque amount being only 5000/-.Ofcourse ultimately a settlement was made under OTS.These things are quite common.Hence my sincere request for the defaulters is never give a cheque to the recovery agents.Still I request you to check up with the bank regarding the status of your credit card account than face such hardship both financially and physically.
