credit card dues

Sir We have taken credit card in the year 2002/2003. Due to business losses we could not pay dues. Bank offered OTS in the year 2006 for Rs80000, we requested for Rs.50000, they agreed and collected in five installments total Rs 50000 plus addl 5000 in the year 2007. Thereafater we taught the account was closed. In the year 2009 we received phone from credit card department asking us to pay money, we replied in writing stating that the account was closed in the year 2007 under OTs and copies of OTS letter and payment detailes were sent by Post/Courier. Thereafter there was no calls from the bank. Unfortunately From last one week they started harassing for more money/Interest. How far they are legally right to harass us for more money after 12 years. we have not given any acknowledgement of debt during last 12 years, except accepting OTS request for Rs 50000 in the year 2006 which was paid in the year 2007. Please guide us to draft a suitable letter to them to avoid their torcher. Sir who will keep papers even after closure of the account in the year 2007. Does the bank has any legal rights to claim more money/interest on 2003 debt and on OTS closed account in the year 2007. Kindly guide us sincerely Yours Naidu

The " Limitation Period " for a personal debt is 3 years from the date of debt./ date of its acknowledgement.


Pl see :




In your case, in 2007 you paid.. 3 years still remained. So till 2010 they could ask you for it, and if you acknowledged ( i. e. accepted  )  the debt, a fresh period of 3 years would start from such date of acknowledgement. If you refused and a dispute occurred, they had to take legal recourse within 3 years from 2007. In case they haven't they are bound by Limitation and can't claim now from you, unless they have some exceptions .


Further, in any case you have made a one Time Settlement in 2007 and have copies of the OTS and payment details. You could E-mail to the Bank's Officials ( redressal details and procedure should normally show up on their Website ) to be followed up with mailing the Documents by Courier and in case of still no closure, could take up the matter with Ombudsman ( RBI )


That is my understanding of the matter. Seniors may correct / comment.


Disclaimer : General Information above is provided without any warranties as to suitability for any use, correctness and application to any specific case. Please always take proper legal counsel .  However,if it helped you even partially a " thanks" would be appreciated and serve as encouragement for continued efforts :-)



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Dy Director

limitation period will revive if you accept the liability.  you only plead about lapse of limitation. Bank cannot sue you now. Ask them to sue you which they cannot. You can give a complaint to RBI before they refer matter to their hired goondas.

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Since there is no transaction between you and the bank for more than three years after having settled the entire amount on the basis of OTS letter, this threat of the bankers will not sustain before law.If you have received any notice, you may reply denying the allegations and wait for them to file a suit, which will not be done by them, and in case of any, you have strong grounds to defend the same on merits.

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Sir Thank you so much .  Yes you are right, they are not writing any letters/notices,

they are harassing on phones for huge money

against settled and closed card account.

Shall I write any letter to them or you want me to ignore their calls




Thank you Kumar Sir, They are not writing any letters/notices they are harassing over phone for huge money on settled account. we made final installment in June 2007 under OTS. Thereafater they have not sent any letter to me. Please guide me Naidu

Mr. Naidu, just ignore their calls and suppose their tortures are beyond tolerance level, you may  lodge a complaint before the local police against them giving details, you will get relieved thereafter.

Advocate/ nadeemqureshi1@gmail.com

completely agree with experts


After expiry of the limitation period, the Bank cannot sue you to recover any amount. In case of threatening, you serve a notice upon the Bank and then file a case against the Bank.




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