Legal Question in Credit and Debt Law in India

Hi. I had applied for a credit card. I didnt receive my first bill and was not aware of my due bill and due date. I tried to call them wasted so much money being on hold. I paid all the puchase I made till date but not last bill as my card was closed. That late fee Rs 350 is now reached to 14000. I am ready to pay every thing I purchased using my cc but not anything for which i am not responsible. my last purchase was 85000 and due bill was 99000. they are asking to pay after settlement 95000 else case will be filed to police. can i ask them to make it 85000. is it valid?

Asked on 8/25/13, 9:21 am

2 Answers from Attorneys

Fca Prashant Chavan Expert Edge LLP

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25.08.2013

Dear Sir / Madam,

Credit Card is a useful mechanism provided you make your monthly bill settlements in time. If you do not make timely payment and settlement of your bill, the bank is entitled to recover interest on the overdue outstanding amount @ 18% to 21% per annum. In your case, the overdue interest amount on non-payment has mounted up and that is the reason why the bank is very validly asking you to make a one-time payment of Rs. 95,000/- and settle the score. Yes, the bank will lodge a Police complaint in the event you fail to settle the overdues.

Regards,

Answered on 8/25/13, 9:40 am

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