Legal Question in Credit and Debt Law in India

13.05.2016

Dear Sir / Madam,

Default in payment and settlement of Credit Card outstanding dues is initiated with a Police complaint and when dragged to Court by the Bank commences as a civil suit. When the parties involved are heard vide a summons and a Court order has been passed, if the defaulter is unable to comply with and fulfil the conditions of the Court order in relation to repayment and settlement within the specified duration or time period, it becomes a criminal suit liable to simple imprisonment. In case of credit card suits, the period of limitation for Banks to pursue the case remains 08 (eight) years.

Regards,

1) The statute of limitations starts for the date of Last activity on the account, as presented on your credit report. This is not always the last date of your payment. If you have communicated with the debt collector beyond the date you made the payment, and they have updated your credit report to show the new date as the date of last activity, the statute of limitations will start from that date.

2) Sometimes the statute of limitations has expired but debt collectors continue their attempts to collect because they hope the debtors do not know about the statute and that they will pay with enough threats. If you are 100% certain the statute of limitations has expired, you can simply ignore them. If a lawsuit is brought against you, you will have justification in that the time limit has expired for the collection of that debt.

3) If you enter a payment agreement, talk to the collectors or promise to make a payment; you will restart the statute of limitations to day one!