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KD   24 April 2025

Demand against credit card theft

In 2003, I held a credit card that I never used. The card was stolen and misused, resulting in an outstanding amount of ₹30,000. I got to know of the theft on receiving bank statement of Rs 30000 and I immediately filed a First Information Report (FIR) with the police and disputed the transactions with the bank. The bank ignored my dispute and the FIR, instead sending transaction slips lacking my valid signature. I refused to pay and requested verification and CCTV footage from the merchant locations, which the bank failed to provide. They continued sending demand statements with added interest and arrear charges. In 2010, the bank sold my account to a collection company. Now, in 2025, the collection company is demanding ₹3.5 lakhs, claiming the original ₹30,000 has ballooned to this amount. They also sent me a legal notice in April 2025 demanding the Rs 3.5 lakhs to be paid within 7 days else they will proceed with further legal or criminal actions. I am seeking ways to safeguard myself and resolve this issue, especially considering I never used the card and reported the crime. Can the collection company file legal notice? Am I bound to pay even though I have not committed crime ? 



 3 Replies

T. Kalaiselvan, Advocate (Advocate)     24 April 2025

The claim is barred by limitation hence you don't give any reply which may be considered as an acknowledgement towards the loan and the limitation will start afresh from the date of your reply.

They cannot take any legal action against the time barred claim.

Real Soul.... (LEGAL)     25 April 2025

That is time barred on that is the legal defense for you, otherwise you are liable for protection and safe custody of your card. the card is linked with a mobile number and whenever anyone used the card you receive an SMS . You had not even informed the bank even to block your card when it was lost. 

You have very weak defense except for the recovery time has passed the limits. If the terms and conditions for the card agreement had extended limitations then you are liable to pay whatever you agreed upon receiving the card.

KD   25 April 2025

This incident happened more than 2 decades back. No mobile notifications were received when the transactions were made. Only notification was physically sent CC statement which led to discovery of the fraud and subsequently FIR was lodged.


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