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shiv sharma (NA)     27 November 2010

limitation act applied to credit card dues

Sir,

Please update me about limitation act being applied to credit card recovery suits. I had a credit card in 2006 and I couldn't make payments. However, I was informed this month that a suit has been filed in lok adalat.

Is the limitation act not applied?



 10 Replies


(Guest)

The limitation act 

part=II

15.

For the price of goods sold and delivered to be paid for after the expiry of a fixed period of credit.

Three years

When the period of credit expires.

 

So the last date of period of credit of transaction  will be  the date of running limitation point.  So your query relating to statement of accounts of you credit card transaction.  confirm with your statement of last transaction ended.

1 Like

PJANARDHANA REDDY (ADVOCATE & DIRECTOR)     28 November 2010

IF YOU HAVE NOT ACKD YOUR STATEMENT IN WRITING THE LIMITATION OF CREDIT CARD DUES LAPSES BY 3Y'S.

EVEN IN CASE  BANKS ALSO ANY LOAN WILL BE RENEWED WITH FRESH ACKMNT/ OR PRIORLY ACKD BY BLANK SIGNATURES IN THE AGREEMENT FORM ITSELF FOR EVERY 3 YRS. 

shiv sharma (NA)     28 November 2010

Thanks Mr. Reddy,

If I acknowledge by email that I have to pay some dues (after three years), or I make a part payment after three years will be the loan be renewed?

PJANARDHANA REDDY (ADVOCATE & DIRECTOR)     28 November 2010

from the day you ackd the time starts i.e limitation of 3yrs extends 


(Guest)

yes its correct

SACHIN AGARWAL (ADVOCATE)     03 December 2010

I differ. After the expiry of the limitation period, the acknowledgment of any debt does not effect the limitation and it cannot come within limitation. The acknowledgment should be within limitation only and then only it extends the limitation..

1 Like

PJANARDHANA REDDY (ADVOCATE & DIRECTOR)     03 December 2010

yes, the ack  shall be within 3 years, and limitation starts further 3 more yrs.

Y ARAVIND (ADVOCATE)     03 December 2010

Sachin Agarwal is correct.

Naidu (ceo)     14 December 2013

Sir

We have taken credit card in the year 2002/2003.  Due to business losses we could not pay dues. Bank offered OTS in the year 2006 for Rs80000, we requested for Rs.50000,  they agreed and collected in five installments total  Rs 50000 plus addl 5000 in the year 2007.  Thereafater we taught the account was closed.  In the year 2009 we received phone from credit card department asking us to pay money, we replied in writing stating that the account was closed in the year 2007 under OTs and copies of OTS letter and payment detailes were sent by Post/Courier.  Thereafter there was no calls from the bank. Unfortunately From last one week they started harassing  for more money/Interest.  How far they are  legally right  to harass us for more money after 12 years.

we have not given any acknowledgement of debt during last 12 years, except accepting OTS  request for Rs 50000 in the year 2006 which was paid in the year 2007.

Please guide us to draft a suitable letter to them to avoid their torcher.

Sir who will keep papers even after closure of the account in the year 2007.

Does the bank has any legal rights to claim more money/interest on 2003 debt and on OTS closed account in the year 2007.

 

Kindly guide us

 

sincerely  Yours

 

Naidu

 

 

 

kedarnath mahendraker (un employeed)     01 September 2014

Respected Sir,

I was holding ABN credit card since 2001. In year 2005 I have settled it by paying cash of Rs. 35000. Again on September 1st my salary account of ABN bank got debited with Rs.23087-00 with out my notice or my authorization.  On contacting customer care I was told that it was system generated transcation they cant revers the entry and they assured that this will not repeat again.

Now in 2014 I started receiving calls from Kotak Mahendra Bank that they have taken over my account from RBS bank and I ow them 43457-00. As this was settled was done long back and there was no further communication from bank and its my bad luck the settlement letter is missing. Now they have send collection agencies persons to my house and they are forcing me to show the letter or pay the out standing.
I am job less since past 30 months I am confused what to do and how to handle this situation.

Please find attached the communication received from Kotak Mahendra bank along with statement and advise me what should i do.


Attached File : 378671835 m kedarnath-transactions.xlsx, 378671835 m kedarnath-assign.pdf downloaded: 127 times

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