Legal Question in Credit and Debt Law in India

credit card fraud

I had a citibank credit card, way back in 2000. It was supposed to expire in August 2002. I moved back to my hometown after leaving my job in June 2002, and since the card was due to expire in 2 months, I made the mistake of neither cancelling, nor changing my address. Apparently, in aug 2002, Citibank sent a re-issue card to my address that they had on file, without asking me, and someone got hold of that card and purchased jewellery worth Rs.30000 in Sep 2002 (after the printed expiry date on my card, as I have told citibank). I got no idea, because I was not getting any statements, and thought the card dead. Now, 6 years later, citibank has contacted me saying that there was 30000 Rs pending, and now it has become 3,60,000. They are demanding the payment of Rs.30000 at least. They refuse to even consider the possibility of identity theft, and harass me. What are my options? Is citibank authorised to send a card to an address, and activate it without confirming it was delivered to the correct person? I am thinking of moving to consumer court. Please advise.


Asked on 1/08/09, 9:26 am

2 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: credit card fraud

The Bank may have got your consent for 'automatic renewal' but it had a duty to deliver the renewed card to the correct person at the correct address. You may not be held responsible for delivery of the card to wrong person and its subsequent misuse.

Moreover, the credit card use is like a debt which carry three years limitation period in India.

If the transaction in question is more three years old without any confirmation from your end, the bank's claim may be time barred.

You may take up all these pleas in the consumer court and file a case of damages against the Bank.

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Answered on 1/08/09, 11:39 am
Venkatesh Babu, E. V & M Associates

Re: credit card fraud

Dear Sir,

You are not liable to pay the debt due as the case is of a civil nature as it is barred by limitation. Further, to that you should file a complaint for harassment with the local police station and approach to the appropriate forum and get injunction and claim damages.

With Regards,

E.VENKATESH BABU

ADVOCATE, CHENNAI

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Answered on 1/28/09, 10:02 pm


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