Legal Question in Credit and Debt Law in India
I had Credit Card in 2001 from one of the Bank in India, Due to some reasons I could not make any payments after Aug 2003, this bank has now come back asking for a settlement against the amount, my credit limit at that time was around Rs 20,000 & they are asking me to pay around Rs35,000. I got this call from one of the collections agency & he promised me to issue me a Full & Final Settlement letter also. My question is can bank come back after 6 years asking for the Credit Card Dues? What if I dont pay this amount? I am not worried about my name getting listed in CIBIL. In this case won't the law of limitation apply?
2 Answers from Attorneys
The law of limitation may apply depending upon facts of the case. However, that may not deter them from filing a suit. You may better try for an amicable out of court settlement to avoid litigation.
Limitation is 3 years from the date of last transaction/payment/your written acknowledgement of dues in any manner (whichever is later). If the claim is time barred, you may ignore the call, but ideally you should not play with the public money and get the account finally settled for a reasonable amount agreeable to you.
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