credit card settlement dues case

I applied for a credit card in 2004 while working for a company and gave address of the house i was living on rent in delhi. By the time the card came i have vacated that house,in the meanwhile the credit card company delivered my card to someone else without any ID proof and my signatures.

The card was misused and exhausted of its limit of Rs 15000 at one go after a year as per cc company.I came to know after phone calls started coming to me regarding its payment.i have explained to the company that i didnt get the card and hence i will not pay.they have put my name in CIBIL and I am not able to get any loans.

I have 3 other credit cards of which I am paying all the dues on time without delay in payment.

Now after 5 years again phone calls started coming to settle dues worth 1.50 lakhs ,I said i will fight in the court of law, now the company is saying to pay only Rs 6000 as one time settlement and we will send you a zero statement.  In the settlement letter they have stated that the performa is the same and stated that I am a defaulter and couldnot settle my dues and as a exceptional case company is doing this settlement

Please advise as to would this settlement be in my favour, will I be able to remove my name from CIBIL or I should ignore this or file a case in consumer forum.


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Don't pay any amount to CC and be firm to your statement if it is true and get credit report form CIBIL and if it comes negative you should send them legal notice for leading wrong information to CIBIL and then you can file suit for defamation.


Do you have any rent receipt or any rent deed/lease agreement to prove your period of stay at the address in the record of the CC company.

Has the CC company sent any letter to you stating non payment by you and your status as a defaulter at your residential address.

The CC company must have taken your office address and copy of your salary slip with your application form.Did they deoliver any written communication/notice to you at your official address.

Has the CC company sent you any letter confirming that they had delivered the CC to you.

Have you received rejetion of your loan applicatio bease on CIBIL report. As per fair practices code the bank has to provide you a copy of all docs submitted by you and rejection if any in writing. 

It seems the CC company has been contacting you on phone only and does not have your new residential address with them and you have also been replying during their phone calls only.

Even if you accept the settlement, your report in CIBIL or SATYAM etc. will reflect negetive.Settlement is done with defaulters and is not advicable.

It shall be better to send them a written reply giving sequence of the communications and mentioning that they never delivered any CC to you and that they never delivered any POD with copy of the ID of the collector of CC despite your information to them that you never received any CC and the erring officers of the company did not block the CC and instead of accepting the lapses CC company declared you defaulter.

As per the trends CC company may not accept their default in service and you may have to obtain releif from consumer forum.

Consult your local lawyer with record.


Thanks Mr. Ahmed for your advise,generally who in the company should be made party if i file a case as its a MNC.Can i file a case in the consumer forum/court in the state where i reside or i have to follow their jurisdiction.


Thanks Ms. Radha for understanding my issue and answering it categorically.

1)As its been more than 5 years now so i dont think i have the rent receipts with me.

2)The company on behalf of their lawyers have sent me a notice at my permanent residence for payment of the dues in 2007( the cc i applied was in 2004) and i have replied that i have not receievd the card and asked them to show me the proofs of the person who recieved the card ,signatures,ID etc.But after that the company didnt reply and then after 3 years now they again stated giving calls to settle the account.

3)No written communication has been sent by the company that the card has been deleivered to office/residence and i didnt get any statements till one year ,after a year i started getting statements ,i asked why the statement was not sent to me earlier ,they said the card has been used after a year by someone.

4) i have got letter from other bank that based of the CiBIL report we cannot process your cc/loan ,thats when i came to know that my name is there in the defaulter list of CIBIL

5) I think the CC comany has outsourced their recovery to some agency and it is them who is calling and harrasing me and pushing for settlement.

A)If even after paying ,my name would be there ,then what can be done to remove my name from there. i have already sent them written reply 3 years back.As per my information CIBIL only take requests from the member banks and not from a particualr individual for removing the name.

b)can i file a case in my state consumner forum/court.And what if the forum ask that why didnt i file a case earlier.

c)I dont want to make my case weak ,will it be better not to pick any calls from them from now,i thought of settlement as the lawyer fees would be high as compared to the settlement amount plus that is no gaurantee of what would be the outcome.

d)can they file any civil suit to recover the amount from my property in future as the int will keep on accumulating.

e)Do we have any time frame as the company has not responded 3 years after sending  the first legal notice and my reply to them.




Mr Karan Sunil! A Company is legal person and we can file a suit in its name it self, notices and all to be served on its registered address. 

For jurisdiction of Consumer Forum kindly go through the following:



Jurisdiction of the District Forum.

11. (1) Subject to the other provisions of this Act, the District Forum shall have jurisdiction to entertain complaints where the value of the goods or services and the compensation, if any, claimed1 [does not exceed rupees twenty lakhs.]

(2) A complaint shall be instituted in a District Forum within the local limits of whose jurisdiction,—

(a) the opposite party or each of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides or CARRIES ON BUSINESS, OR 4[HAS A BRANCH OFFICE OR] PERSONALLY WORKS FOR GAIN; or

(b) any of the opposite parties, where there are more than one, at the time of the institution of the complaint, actually and voluntarily resides, or carries on business 1[or has a branch office], or personally works for gain, provided that in such case either the permission of the District Forum is given, or the opposite parties who do not reside, or carry on business 1[or have a branch office], or personally work for gain, as the case may be, acquiesce in such institution; or

(c) The cause of action, wholly or in part, arises.

12. A complaint in relation to any goods sold or delivered or agreed to be sold or delivered or any service provided or agreed to be provided may be filed with a District Forum by—

(a) the consumer to whom such goods are sold or delivered or agreed to be sold or delivered or such services provided or agreed to be provided;

(b) any recognized consumer association whether the consumer to whom the goods sold or delivered or agreed to be sold or delivered or services provided or agreed to be provided is a member of such association or not;

(c) one or more consumers, where there are numerous consumers having the same interest, with the permission of the District Forum, on behalf of, or for the benefit of, all consumers so interested; or

(d) The Central or the State Government.

Explanation. —For the purposes of this section, "recognized consumer association" means any voluntary consumer association registered under the Companies Act, 1956 (1 of 1956), or any other law for the time being in force.]



The letter from the bank rejecting your loan,  shall help you to fight for your cause and in case incidences narrated by you are true, you should fight and you shall win and get relief and compensation.

CC company can lodge with lok adalat /file a civil summary suit.Avoid the treatening action being cited by CC company

The conduct of CC company is for the reason that no employee in the company shall accept the lapse and invite compliane process and penalty and report to write off .

Even if based on your persuation if the company writes off the amount it shall be recorded  in CIBIL and shall be negative feedback on you.

CIBIL is being misused by the companies  and the hapless consumers/customers are arm twisted to pay.

You can visit the website of CIBIL and apply online/offline for your report by paying the specified fee.

You can also obtain info you desire online/offline under RTI from CIBIL and fee can be paid by CC/DC.


You have replied to their notice and must be having the copy and its proof of despatch and delivery.

It is seen when weak the companies can go the extent of denying receipt.Henceforth if you send a reply by registred post/speed post apply and obtain POD( POD is differrent from AD and is an document acepted by courts and in case you have POD you and PO can sue the recipient denying the receipt) from post office.

You can record the calls.You may ask and record the name designation office address office phone number of the person calling you.You may call back at these numbers and you may find them fictitious.

You may write a notice to the MD of the CC company and narrate the total incidence and plead that in place of punishing/ terminating the erring employee you are being harrassed, and despite your demands certified copy of your application form/certified POD of card delivery/certified copy of charge slips,bills, ,certified copy of the complaint of CC company with courier and report of the courier,certified copy of the report of the employee of CC company asking to block the card etc,name designation and permanent ad from employment record of the erring officer of CC company,are not being provided to you and mention the rejection of your loan and mention you shall proced for defamation/damages.You can list down the numebrs from whch you havce been getting calls and ask to confirm these are CC company numbers.

You report the matter to SSP/police commisioner stating in place of accepting their  lapses the CC company is resorting to extortion, after you have provided the facts to CC company, and obtain the receipt of your complaint with its diary number.This shall help you.You shall have to provide the local office address and phone number of Branch Head to police.You can give phone numbers from which you received the threatening calls and police shall give you the details in whose name and address the phoen is registred.

It is important for you to get your name deleted from the CIBIL.CC company may not do it.

You can file your case in Distt. consumer Forum.Fee of consumer court lawyers is nominal. Your presence is not mandatory.





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