Suman M (Engineer) 04 September 2014

Credit card bill old debt

Hi,

I had a Credit Card forcibly given to me by ABN AMRO bank in 2006. I was just 18 years old working part time in a call center before joining degree college. This bank is closed now. I am recently getting calls now after 7 years by Kotak Mahindra Bank (Pheonix ARC) telling that i have 24,500 rupees balance in it and i have to make a payment immediately.

I don't remember having an outstanding balance on that, but they have sent me the card statements which has transactions in mobile showrooms back in 2007. Since the ABN AMRO bank is closed now and i have not been aware of this for so many years... what options do i have?

They DONT have any of my details like address, PAN, passport etc because i didnt have these documents in 2007.

Can this outstanding balance effect my CIBIL score when they DONT have any of my details... i have been getting loans and credit cards without any problem for last few years.

what is the law for stale debts in India?

Can i dispute these charges and refuse the payment?

please advise...........

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1 Replies

Kumar Doab (FIN) 04 September 2014

1.The outstanding or debt if it exists and has never been admitted by you on record should be 'Time Barred' and recovery can not be enforced.

2. The company that has bought the debt from bank ( if debt factually exists) shall chase you as it wants to make the profit of debt purchased cheap by it.

3. The company that is member of CIBIL can send the information and CIBIL without asking you can keep it on its record.

4. If you choose to enter into a settlement then remember settlement is also an adverse entry and shall also affect our credit rating and lender may find it repelling.

5. If you have any doubts on entries in bills sent to you demand certified copies of charge slips signed by you.

6. If you agree to settle the dues (if there are dues) then you should do so under expert advice of your lawyer so that there is no adverse effect on your credibility and the credit history is cleaned and you get a certified copy of report from CIBIL/Experian/Equifax/Master Card negative feedback list etc......................