A friend of mine got a credit card from ABN AMRO Bank in the year 2007. It was used for a period of 1 year for spending around Rs.25000 and repaid around Rs.10000. He was unable to pay the rest due to his financial circumstances. In the Meantime, ABN AMRO Bank was taken over by Royal Bank of Scotland, which transferred it's credit card recovery to Pheonix ARC Private Limited (sponsored by Kotak Mahindra Group). Now, after nearly 9 years, he got a call from Kotak Mahindra, asking him to repay the outstanding balance which amounted to Rs. 60 Thousand (majority in taxes and finance charges). He has NOT received any legal notices so far. My friend has lost track of the documents related to the card and is worried about the issue, since he no documents to validate his transactions. Now, the questions: 1. What is the time limit for any bank (Private/Public) to recover the outstanding credit card dues, even after take overs? 2. What would be the best way to resolve this issue (apart from paying the entire outstanding)? 2. What documents should he ask the recovery agents/bank, in what format, to verify the details? 3. What kind of details should he verify? 4. What are the legalities involved? 5. Should he go for a write-off, would that affect other loans he would take in future?
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1) bank has to take recovery proceedings within period of 3 years
2) since no payment has been made for last 8 years claim of bank would be barred by limitation
3)ask bank to furnish detailed statement of account
4) check when last payment was made as per bank records
5) if friend so desires opt for one time settlment at 50 per cent of outstandings claimed
Hi, For the suit for the recover of money has to be filed with in three years from the date of borrowing so in your case the debt is barred by limitation so they can't recover the amount.
Dear Querist
My opinion on your queries are as under:
1. . What is the time limit for any bank (Private/Public) to recover the outstanding credit card dues, even after take overs?
Opinion: three years from the demand.
2. What would be the best way to resolve this issue (apart from paying the entire outstanding)
Opinion: try to settled the matter amicably, now they may settled the matter only on the actual dues and can waived off all interest and charges.
2. What documents should he ask the recovery agents/bank, in what format, to verify the details?
Opinion: statement of account of your credit card and details of their take over documents, at the time of settlement, they should mentioned all the details about original creditor your their relationship and on behalf of original creditor they issued noc to you.
3. What kind of details should he verify?
Opinion:- as above.
4. What are the legalities involved?
Opinion: if there is no legal notice received by the borrower then no need to worry, wait and watch, they are not able to get any amount.
But if they file any case before the court then you have to pay advocate fees which may be more then your settled amount.
5. Should he go for a write-off, would that
Opinion: total amount can not be waived off but if you want to fight then you may be win the case.
Feel free to call
1. The time limit is 3 years from the date on which the amount falls due. Since more than 9 years have elapsed it has now become time barred.
2. Since the loan is now not recoverable from him the bank will resort to intimidation through recovery agents, in which event your friend should lodge a police complaint.
3. It is the bank and not your friend which can write-off the loan as a bad debt.
1. The time limit to file civil suit to recover money is three years from the date when you last acknowledged the debt.
2. Negotiate with the bank and settle to an agreeable sum of money. The bank often negotiate with customer to recover its past loan.
3. You ca ask the arrears money to be paid. Do not acknowledge in writing anything including receipt of any document.
4. Payment made and payments due to be verified.
5. Writing off loan is discretion of ban and you can not insist on this.
Since 9 years have passed it is better f you ignore such calls.
1. The time limit is three years only,after that, if there is no acknowledgment by the borrower in between then the claim is barred by limitation.
2. You do not have to respond to the calls made by the recovery agents. If they indulge in any unlawful activity for recovery, you may lodge a criminal complaint for extortion against them with local police
3. dont allow the agents to come near you to verify any documents
It would be advisable to not to entertain the agent or his calls because they may not be able to recover the time barred claim or loan and any move by you on this wold automatically renew the time and the limitations will start from the date of your contact or acknowledgment to their call.
