Since the day I have posted my opinion on this query I have received numerous calls of people who are credit card defaulters of pitty pitty amounts such as 10k, 50k, etc. or who have paid the principal amount but still keep receiving threatening calls from the banks to deposit the interest amount else will be prosecuted in criminal court.
Few example calls received by such people are:
"I am an advocate calling from High Court of so and so state and there is a criminal case filed against you for not making the credit card payment which you were suppose to pay in year 2005 or so. Make the payment else you will have to go to jail."
"I am calling from so and so police station and there is a non-bailable warrant issued against you. Make the payment else we are coming to arrest you."
Below is certain information for all you people who get such calls:
Firstly, these people who call you are neither advocates nor police. They are recovery agents on bank panel.
Secondly, Credit card issued by banks to you are unsecured loans and is purely a contractual liablity. In other words it is a civil issue.
Thirdly, No criminal case is made out for such pitty amounts untill and unless you have issued some cheque against the payment and the cheque has bounced. Then you are liable under Section 138 of NI Act, which is also a bailable offence. Otherwise the bank has to go in a civil recovery case. Even for that there is a limitation of 3 years to file a case.
Fourthly, No criminal case of such nature is filed in any High Court.So anyone claiming to have filed a criminal case against you in High Court is defintly a recovery agent.
Fifthly, the police has no authority or power to recover the money from you and become a recovery agent of private bank.
Sixth, Always take an NOC from the bank in writing when you settle the loan or credit card outstanding full and final with the bank.
Seventh, Banks do one smart play with you that if you are a defaulter of a pitty amount they will not file a recovery suit against you but will keep updating your defaulter image with CIBIL. This distroys your credit history and rating and disables you from getting any other loan or credit card in future. If the bank has not filed a civil suit within time but still distroying your CIBIL credit then contact a good lawyer.
Last but not the least, if you use credit card use it wisely and pay the due amount on time.
Supreme Court of India