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STATUS OF ACCOUNT

(Querist) 12 June 2008 This query is : Resolved 
IF AN INDIVIDUAL'S ACCOUNT ( TO BE SPECIFIC CREDIT CARD ACCOUNT) WITH ANY BANK IN INDIA GOES INTO SOME PROBLEM AND ULTIMATELY BOTH PARTIES ENTER MUTUALLY INTO A FULL & FINAL SETTLEMENT.

AFTER THIS FULL & FINAL SETTLEMENT THE INDIVIDUAL PAY THE AGREED AMOUNT AND THE
BANK ISSUES HIM A SETTLEMENT LETTER MENTIONING THAT NOTHING IS OUTSTANDING ON HIS ACCOUNT.

CAN THE BANK SHOW STATUS OF THE ACCOUNT AS A WRITTEN OFF ACCOUNT IN ANY OUTSIDE AGENCY.

MY VIEW IS THAT THE ACCOUNT IS A SETTLED
ACCOUNT AND CANNOT BE TERMED AS WRITTEN OFF ACCOUNT.

PLEASE ADVICE IF POSSIBLE WITH THE ACT WHICH IS USED TO DECIDE THIS POINT.

REGARDS
HARESH
Srinivas.B.S.S.T (Expert) 12 June 2008
Sir as the account is settled it cannot be shown as written off. Because when an account became inactive it will be treated as NPA and if there in no chance to recover then it will written off as bad debt. But in the present case the bank officials accepted OTS and recceived the payment. Then they have to show the account as closed or settled. Do you have the copies of settlement and the payment details with you. please let me know
R.S.Rajesh (Expert) 12 June 2008
Since the dues are not paid in the normal course , the account has been settled as per the policy of the bank ,perhaps with some sacrifice/written off.
However, the status of the account are not supposed to be divulged to third parties, since the banks have to observe the obligations as to fidelity and secrecy in respect of the individual accounts.These obligations are covered under section 13 of the Banking Companies ( Aquisition of undertakings) Act,1980. Please go through the same as ther is an exception covered under the Credit Information Comanies (Regulations ) Act, 2005.
haresh (Querist) 14 June 2008
Dear Mr Srinivas , Yes I have the original copy of the settlement letter and payment recipt. The third party I mentioned is CIBIL Credit Information Bureau of Inidia Ltd. Please advice with sections and Act if possible.

Dear Mr. Rajesh You have mentioned that bank has to scarifice/written off, please note that it may be the bank has corrected the wrong debits made in a customers account. So in case of dispute any one can be Wrong may be the customer or the Bank.
Above all once an settlement is arrived the point of who being wrong is closed and one account can have one status and not two status i.e settled when dealing with the customer and written off while dealing with any third party. Please advice .
haresh (Querist) 14 June 2008
the query is open
Srinivas.B.S.S.T (Expert) 15 June 2008
either you can approach banking amubudsman or you can knock the doors of a Consumer forum for defficient service at the end of the bank
Srinivas.B.S.S.T (Expert) 15 June 2008
but first issue a legal notice to the bank authorities pointing out thier mistake.
Srinivas.B.S.S.T (Expert) 15 June 2008
but first issue a legal notice to the bank authorities pointing out thier mistake.
haresh (Querist) 16 June 2008
Thank you Mr.Srinivas , Can you please give me the ACT and section which proves our point that once account is setteled it cannot be termed as Written Off.
KamalNayanSaxena (Expert) 17 June 2008
Dear Mr. Haresh
As the account has been settled, it can't be expressed as written off account even the condition of settlement is not in favour of bank. RBI guidelines regarding written off as well as the settled account are very much clear and speaking. It is advisible to issue a legal notice to the concerned authorities demanding correction in status of account. You can also claim the damages, if any, by filing defamtory suit.
haresh (Querist) 21 June 2008
Dear Mr. Kamal, thank you for your reply.
what you have stated sounds very logical and absolutely correct. But I request you to please if you can give me the details of the guideline of RBI like :
a) where this guideline is available.
b) what section if any or what page or
para or portion of the guideline is
to be refered to prove this.

If I have these then my notice will have value and the bank will response.

Unfortunately till now my normal letter without reference to the guideline has been replied in a very routine way and out of context.

Please advice.
KamalNayanSaxena (Expert) 23 June 2008
Those guidelines are available with every banker. If you have any difficulty in obtaining that one, you can demand under right to information Act from your Bank
haresh (Querist) 07 July 2008
Dear Mr. Kamal Saxena,

I have asked my bank but it appears difficult to pin point the exact guideline which proves our point as correct. So I request you to please if you have the same please mail me.

I aslo request others reading this to mail me if they have the same.
anantha krishna n.v. Advocate (Expert) 11 July 2008
let me look at it from a different point of view.
Let us not worry about what bank rules say. You have discharged your contract of credit card on certain modified terms and both parties performed their parts. So this is an executed contract. Where is the question of still showing it as a bad debt.
The bank for its internal accounting purposes book the un recovered but debited interest under bad debts to satisfy the mathematical equations but certainly cannot term it as bad debt.


haresh (Querist) 15 July 2008
Can you suggest me some lawyers in Bangalore who specialise in the cases relating to Banks.
Srinivas.B.S.S.T (Expert) 19 July 2008
contact me at s_bsst@yahoo.com I will give a list of advocates in bengaluru
haresh (Querist) 27 August 2008
Can any one suggest me some lawyers in Bangalore who specialise in the cases relating to Banks or specialise in Bnking laws.
Prakash Yedhula (Expert) 29 November 2008
Try Mr.K.V.Dhananjay

His mob no. is 9902909390


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