Legal Question in Credit and Debt Law in India

I took a cash advance from a ATM using my credit card on a visit abroad. It was in Nov 2013. Bank charged it in December bill along with the interest and other fees. I paid the complete bill amount on time. However they again charged an interest on my Jan 2014 bill also. When I called them, I was told that, in case of cash withdrawal paying the full bill amount is not sufficient. I paid the bill amount in full and I was using the card for other purchases as usual. They said, since I used the card after they send the bill, that will remain as an outstanding and they will charge interest for that. That means, the bank will continue to charge me forever even though I pay the full billed amount and continue to use the card. They said the way around is not to use the card for a month, get the bill and pay the full amount. Is this correct?. How can they charge me even after I settled the cash with drawn along withe the interest and other charges


Asked on 2/13/14, 9:00 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

14.02.2014

Dear Sir / Madam,

The bank is entitled to charge you the interest at the prevailing rate for cash advances and overdue interest in case of failure in settlement of billed amounts by the due date.

Regards,

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Answered on 2/14/14, 5:07 am


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