Dear Sir/Madam,
I hold a Credit Card from a private Indian bank since 2008. I had been making regular payments till around July-August 2011, after which I defaulted as I lost my job. I had taken a personal loan of Rs.60,000/- from the same bank and paid back the entire amount as per the duration mentioned in the loan document.
As I do not hold a job for the last 8-9 months, I became a defaulter for the Credit Card Account. I have tried numorous times to contact the bank's personnel and either regularize or settle the account. But, not a single person from the bank's side was willing to commit anything in writing. Their collection agents have also made false promises/statements and threatened me repeatedly, of which, I have enough proof in the form of saved conversations and messages.
Now, the bank's legal counsel has sent an e-mail to me stating that I have to pay the entire amount plus 18% tax on the amount and an additional Rs.1,000/- towards the cost of the legal notice. If I fail to do so within 7 days, he said that they will initiate action under Order XXXVII and would claim relief under Order XXXVIII Rule V. As I am jobless for almost a year, there is no question of me being able to pay the entire sum.
My question is, because the Credit Card was issued to me on the basis of my salary account with the bank and as it is an unsecured instrument, can the bank file a Civil Suit under Order 37 & 38 Rule 5 and compel me to pay the entire amount? Whether such a suit is teneable in the court of law?
As a matter of fact, I also had a card from SBI, the payment for which I have duly settled.
Kindly provide your valuable inputs on the same.
Thanking you,
Monoj
