Credit card bank hold on fund on savings account
pramod
(Querist) 07 May 2012
This query is : Resolved
Respected Experts,
Kindly advise me on the following circumstances to defend the right of mine as per its due procedures of law;
1. That I was a credit card holder of private bank for the last few years till 2010. Since the beginning of allotment of the said credit card in the month and year of March, 2006, that I was very prompt on payments of outstanding on or before its due date of its payment. I never used to make part payment towards its due rather I had preferred to make the monthly outstanding in full payment. Never ever carry forwarded monthly payments after paying minimum charges of outstanding, which is to basically avoid double interest rate in the next proceeding month.
2. Meanwhile, in the month and year of November, 2010, that one of the monthly payment I could not pay on or before the due date. After the due date some of the agency of the bank had called me up and instructed me to pay the outstanding on the very day itself. I had politely expressed my inabilities to make the said payment for that month due to my financial constrain. Later the agency personnel again called me up to make the payment immediately to avoid penalty charges and remarks of defaulter status on CRISIL rating. I have further expressed assurance that I shall be making the payment in the next month but the agency personnel were very rude and abused me on telephone. Hence I have filed a Police complaint.
3. Even after filing the Police complaints that the harassments were continued. Later I was constrained me to file further Police complaints and RTI applications on those complaints. Meantime I have received RTI reply from the police that they have referred the matter to concerned Honarable Magistrate for permission to prosecute those agency people.
4. Sometime later in the month and year of February 2011, that I have received a notice U/s 20 (2) of Legal Services Authorities Act, 1987, for an arrangement of Pre- Litigation. The total outstanding shown as Rs. 34544, instead of Rs.29000. Hence the matter is referred to Lok Adalat, failing to appear in the proceedings may cause further legal consequences. I have sent a letter to the office of the legal aid center, that, I shall be appearing for the same and would be happy to settle the matter. Later in the proceedings I have shown my willingness to pay the complete amount of outstanding to settle the matter and requested the bank to activate the services of my credit card and to bring up on the agency people for apologize for the act of misbehavior and abuse which was not legal. But the personals were reluctant to my conditions and informed me that it is an opportunity to settle the issue and to clean up your credit reports of my financial status. Somehow I have not convinced with the idea of that settlement and decided to defer with their propositions. I have even argued that I was always prompt on payments and never made default except the one in which the very own matter before and for that I was abused and now you have put me into black list of defaulters. Thus, you have caused loss and damages to my credit worthiness in the financial market. I have also expressed my genuine concern with relevant questions that the bank nowhere had mentioned at the time of allocation of the credit card that in case of nonpayment you may have to go through such experiences of recovery people who may abuse or assault you if you don’t pay.
5. Thus Lok- Adalat could not find a solution for me, particularly with my genuine concern of my legal agony and misery as of a legal right. In the meantime that I have received many notices from respective bank counsels to pay the outstanding else I may get prosecuted and tried. Till this date, in spite of more than a dozen notices and reminders neither the bank nor its lawyers have initiated any legal proceedings against me. I do not know the reason that why they have not initiated proceedings till now. It appears from the conduct of the Bank that in spite of lawyers notices they still prefer to engage agency personnel to recover the dues.
6. However the matter is still pending on hold for prosecution against me for nonpayment but rather the Bank found a way to place a hold on funds at savings account maintained by me in the sister concern or division of this private bank. My account has been debited for Rs.22000 against balance of credit card without my permission and consent. Notice served on 18th April, 2012 and fund seized on 18th April 2012 before the same reaches me in the meantime. The reason mentioned IN THE NOTICE that by the Bankers lien and Right of Setoff option the Bank has placed on hold the said amount and shall be debited against the part payment of outstanding of credit card that if I don’t remit the balance of the same within 7 days, it has also mentioned that the Bank shall be vide the cross default clause of the card member agreement the same shall be debited.
Therefore, my humble question to all respected experts;
A. Is this legally correct? If no kindly advise me.
B. If it is legally correct then what about the contractual agreements held between me and the bank, with respect to the due procedures of law of the agreement?
I shall be thankful to all your kind contribution.
Thanking you once again.
V R SHROFF
(Expert) 07 May 2012
Bank only concerned with your present transaction.
FORGET THE PAST, U WERE REGULAR OR NOT.
Lok- Adalat could not find a solution for me,Let me know if Lok Adalat allow both of you to settle?? If u cannot file consent/ compromise, Lok Adalat is helpless.
By talking Goody Goody, Bank cannot recover their Loan. After all it is Public Money that you used. bank is a trustee for Public Money, and non recovery will harm thousands of innocent depositors, if Bank do not take strict action.
Despite all action, bank is unable to recover crores of Rupees.Even recovery agents cost you only, as you created this situation by non payment.
So who will help you?? At whose cost??
If you want to enjoy Credit Card Facility, you must be ready to pay for it.
SAINATH DEVALLA
(Expert) 07 May 2012
Let us forget everything as long as we have been paying.Let us talk about things,since you have become a defaulter.I would like to say only 2 things.(1) No use of giving police complaint,as police are hand in glove with the recovery agencies.(2) The bank has every right to debit your savings or current accounts,with the total card liability,it is know as putting a lien on your account.Till the outstanding is cleared,the amount stands as lien.
Lok Adalats for this nature are of no use.Even complaining your case with the banking ambudsman,will not yeild any favourable result.Never give cheques to the recovery agencies,because they will either present it in Port Blair or in Srinigar,and you will have to shell down a fortune.
p.s/ Kindly obtain a credit card application and only go through the terms and conditions printed,and you will come to know that the fault is yours.
ajay sethi
(Expert) 07 May 2012
bank has right to exercise lien . generally when you open an acoount with bank you will find such a clause in agreement . th esaid clauses authroises bank to exericse its right of lien in respect of money lying in your bank accounts
Shonee Kapoor
(Expert) 07 May 2012
I agree with the opinion of experts on this issue.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
