I m holding Axis Bank savings account since 2007, recently. My outstanding debts of Citibank was taken over by axis bank and now showing axis card outstanding but in cibil records it shows write-off. My question is can axis bank deduct amount from my account without my permission or consent? Pease guide me.
Credit card dues are from 2012 and no legal action was taken by them till date.
1) Claim is barred by limitation
2) suit if any to recover outstandings should have been filed within 3 years
3) dont keep much money in your bank account
4) bank gets the right of a general lien w.r.t. all securities of a customer including negotiable instruments and Fixed Deposits, but only to the extent to which that customer is liable.
Claim of bank is barred by limitation
Dear Client,
Banks generally cannot deduct amounts from your savings account without your explicit consent or a prior agreement. However, banks can only do that in case of unpaid loans or under suspected fraudulent activity or legal judgments. When you opened your Axis Bank savings account and obtained your credit card, you likely agreed to the terms and conditions that may allow the bank to set off outstanding credit card dues against your savings account balance. If there was no explicit agreement giving Axis Bank the right to deduct amounts directly from your savings account, then they cannot do so without your consent. Since no legal action has been taken by the bank from 2012 till date, the principle of "limitation period" might come into play. As per the Limitation Act, 1963, the typical limitation period for debt recovery is 3 years from the date the debt becomes due. Check the terms and conditions of your Axis Bank savings account and the terms associated with your credit card. Clarify the situation and confirm if there were any terms that allowed them to deduct money without your explicit consent. Consult a lawyer if needed. Should you require any further clarification, please do not hesitate to contact us.
- Legally the bank cannot deduct any amount from from an account without one's permission., however the bank can deduct money from other account of the person who default in the payment of loan amount.
- Since, there is credit card dues towards you , hence the bank can adjust the said dues from the saving account.
- However, the limitation period of recovery is limited to 3 years, hence the bank cannot recover /deduct the funds from your saving account.
- You can lodge a complaint before the Consumer forum for the deficiency of services.
But when I opened my account it was not axis bank credit card. Recently they took over Citibank cards which was due since 2012. I m confused
As mentioned earlier claim is barred by limitation
- You can send a legal notice to the said bank for refund of the debited amount, and if no positive response then file a complaint before the consumer forum.
- Further, if the Citibank has not demand this amount from you within this period , then the Axis bank cannot deduct the amount even after amalgamation.
I really find this odd
Even if Axis took over the debts owed to citibank, Axis can by no means directly deduct money from your account held with Axis
You will have to escalate this matter to the Banking Ombudsman
The outstanding debts with the Citibank can be recovered by due process of law by the bank or by its representatives who bought such outstanding debts of its customers.
The role of Axis bank is only for recovery on behalf of the Citibank and not that the Axis bank can recover the amount from your account held with it.
If the Axis is doing any such act then it will be illegal, you can initiate proper legal action either through consumer forum or civil court and even can lodge a criminal complaint agaisnt the Axis bank for such illegal activity against the customers.
In that case the claim that may be made by the Citibank or its agent, i.e., Axis bank is very badly barred by limitation, you don't sign any acknowledgment of loan with anyone because it will create a fresh limitation..
They are not your bankers hence you need not be confused about it.
The Citibank has actually sold their customers debts to Axis bank and now the Axis bank will be the recovery agent of the bad debts of Citibank, hence the Axis bank cannot claim the debts legally or officially.
They may have to approach legal sources for recovery, whereas the claim is barred by limitation now hence there is nothing to be worried about it at this stage
1. If your loan account shows outstanding resulting in to the stage where it is going to be declared as NPA or call for a legal action, then the lending bank can recover the outstanding amount or part thereof from any other account of yours.
2. In your case your account at Citibank has been taken over by Axis Bank for which Axis Bank has got the authority to recover outstanding amount of your one account from other account.
It shows outstanding for which it was recovered from your other account.
It shows outstanding for which it was recovered from your other account.
It shows outstanding for which it was recovered from your other account.
It showed outstanding which was recovered from your other account.
Your Citi Bank account has now become account of Axis Bank.
No unless it’s charges you have defaulted or agreed during account opening terms
