Legal action agaisnt credit card defaulters
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Legal action agaisnt credit card defaulters

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Legal action agaisnt credit card defaulters Legal action agaisnt credit card defaulters Presentation Transcript

  • CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,Mylapore,Chennai - 600 004.Tel: +91 - 44 - 2498 4821BANGALORESuite 920, Level 9,Raheja Towers,26-27, M G Road,Bangalore - 560 001.Tel: +91 - 80 - 6546 2400COIMBATOREBB1, Park Avenue,# 48, Race Course Road,Coimbatore - 641018.Tel: +91 - 422 – 6552921EMAILinfo@altacit.comWEBSITEwww.altacit.comLEGAL ACTION PERMISSIBLEAGAINST CREDIT CARDPAYMENT DEFAULTERSLakshminarayanan AlagurajaAdvocateAltacit Global
  • CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,Mylapore,Chennai - 600 004.Tel: +91 - 44 - 2498 4821BANGALORESuite 920, Level 9,Raheja Towers,26-27, M G Road,Bangalore - 560 001.Tel: +91 - 80 - 6546 2400COIMBATOREBB1, Park Avenue,# 48, Race Course Road,Coimbatore - 641018.Tel: +91 - 422 – 6552921EMAILinfo@altacit.comWEBSITEwww.altacit.comCREDIT CARDA credit card is a payment card issued tousers as a system of payment. It allows thecardholder to pay for goods and servicesbased on the holders promise to pay forthem. The issuer of the card creates arevolving account and grants a line of creditto the consumer (or the user) from whichthe user can borrow money for payment to amerchant or as a cash advance to the user.
  • CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,Mylapore,Chennai - 600 004.Tel: +91 - 44 - 2498 4821BANGALORESuite 920, Level 9,Raheja Towers,26-27, M G Road,Bangalore - 560 001.Tel: +91 - 80 - 6546 2400COIMBATOREBB1, Park Avenue,# 48, Race Course Road,Coimbatore - 641018.Tel: +91 - 422 – 6552921EMAILinfo@altacit.comWEBSITEwww.altacit.comBENEFITS TO CUSTOMERSThe main benefit to each customer isconvenience. Compared to debit cards andcheques, a credit card allows small short-term loans to be quickly made to a customerwho need not calculate a balance remainingbefore every transaction, provided the totalcharges do not exceed the maximum creditline for the card.
  • CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,Mylapore,Chennai - 600 004.Tel: +91 - 44 - 2498 4821BANGALORESuite 920, Level 9,Raheja Towers,26-27, M G Road,Bangalore - 560 001.Tel: +91 - 80 - 6546 2400COIMBATOREBB1, Park Avenue,# 48, Race Course Road,Coimbatore - 641018.Tel: +91 - 422 – 6552921EMAILinfo@altacit.comWEBSITEwww.altacit.comINTEREST CHARGES• Credit card issuers usually waive interest charges if thebalance is paid in full each month, but typically will chargefull interest on the entire outstanding balance from thedate of each purchase if the total balance is not paid.• The credit card may simply serve as a form of revolvingcredit, or it may become a complicated financial instrumentwith multiple balance segments each at a different interestrate, possibly with a single umbrella credit limit, or withseparate credit limits applicable to the various balancesegments.• Interest rates can vary considerably from card to card, andthe interest rate on a particular card may jump dramaticallyif the card user is late with a payment on that card or anyother credit instrument, or even if the issuing bank decidesto raise its revenue.
  • CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,Mylapore,Chennai - 600 004.Tel: +91 - 44 - 2498 4821BANGALORESuite 920, Level 9,Raheja Towers,26-27, M G Road,Bangalore - 560 001.Tel: +91 - 80 - 6546 2400COIMBATOREBB1, Park Avenue,# 48, Race Course Road,Coimbatore - 641018.Tel: +91 - 422 – 6552921EMAILinfo@altacit.comWEBSITEwww.altacit.comCRIMINAL THREATSection 156 (3) of CrPC - Police officer’spower to investigate cognizable cases.Section 200 of CrPC - Examination ofcomplainant.Section 406 of IPC - Punishment for criminalbreach of trust.Section 420 of IPC - Cheating anddishonestly inducing delivery of property.Section 138 of NIA - Dishonour of chequefor insufficiency, etc., of funds in theaccounts.
  • CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,Mylapore,Chennai - 600 004.Tel: +91 - 44 - 2498 4821BANGALORESuite 920, Level 9,Raheja Towers,26-27, M G Road,Bangalore - 560 001.Tel: +91 - 80 - 6546 2400COIMBATOREBB1, Park Avenue,# 48, Race Course Road,Coimbatore - 641018.Tel: +91 - 422 – 6552921EMAILinfo@altacit.comWEBSITEwww.altacit.comREMEDY• non payment of dues is a civil liabilityand not criminal.• bank can file a civil suit for recoveryof the outstanding amount and notcriminal case.• file a recover suit under RDDBFI Act.• Banking Ombudsman at RBI.
  • CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,Mylapore,Chennai - 600 004.Tel: +91 - 44 - 2498 4821BANGALORESuite 920, Level 9,Raheja Towers,26-27, M G Road,Bangalore - 560 001.Tel: +91 - 80 - 6546 2400COIMBATOREBB1, Park Avenue,# 48, Race Course Road,Coimbatore - 641018.Tel: +91 - 422 – 6552921EMAILinfo@altacit.comWEBSITEwww.altacit.comRESERVE BANK OF INDIAImportant Terms and Conditions:• Fees and Charges• Drawal limits• Billing• Default and circumstances• Termination / revocation of cardmembership• Loss/theft/misuse of card• Disclosure
  • CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,Mylapore,Chennai - 600 004.Tel: +91 - 44 - 2498 4821BANGALORESuite 920, Level 9,Raheja Towers,26-27, M G Road,Bangalore - 560 001.Tel: +91 - 80 - 6546 2400COIMBATOREBB1, Park Avenue,# 48, Race Course Road,Coimbatore - 641018.Tel: +91 - 422 – 6552921EMAILinfo@altacit.comWEBSITEwww.altacit.comDEFAULT AND CIRCUMSTANCES• Procedure including notice period for reporting a cardholder as defaulter• Procedure for withdrawal of default report and the periodwithin which the default report would be withdrawn aftersettlement of dues• Recovery procedure in case of default• Recovery of dues in case of death/ permanent incapacitance of cardholder• Available insurance cover for card holder and date ofactivation of policy
  • CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,Mylapore,Chennai - 600 004.Tel: +91 - 44 - 2498 4821BANGALORESuite 920, Level 9,Raheja Towers,26-27, M G Road,Bangalore - 560 001.Tel: +91 - 80 - 6546 2400COIMBATOREBB1, Park Avenue,# 48, Race Course Road,Coimbatore - 641018.Tel: +91 - 422 – 6552921EMAILinfo@altacit.comWEBSITEwww.altacit.comRECOVERY AGENTS• engagement of Recovery Agents including verification ofantecedents of their employees by agents,• incentives to recovery agents – banks to ensure thatcontracts with the recovery agents do not induce adoptionof uncivilized, unlawful and questionable behavior orrecovery process,• methods followed by recovery agents,• training to recovery agents ,• taking possession of property mortgaged /hypothecated tobanks,• use of forum of Lok Adalats,• complaints against the bank/recovery agents and• periodical review of the recovery agents’ mechanism.
  • CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,Mylapore,Chennai - 600 004.Tel: +91 - 44 - 2498 4821BANGALORESuite 920, Level 9,Raheja Towers,26-27, M G Road,Bangalore - 560 001.Tel: +91 - 80 - 6546 2400COIMBATOREBB1, Park Avenue,# 48, Race Course Road,Coimbatore - 641018.Tel: +91 - 422 – 6552921EMAILinfo@altacit.comWEBSITEwww.altacit.comCase Study
  • CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,Mylapore,Chennai - 600 004.Tel: +91 - 44 - 2498 4821BANGALORESuite 920, Level 9,Raheja Towers,26-27, M G Road,Bangalore - 560 001.Tel: +91 - 80 - 6546 2400COIMBATOREBB1, Park Avenue,# 48, Race Course Road,Coimbatore - 641018.Tel: +91 - 422 – 6552921EMAILinfo@altacit.comWEBSITEwww.altacit.comMADRAS HIGH COURT JUDGEMENTJustice R Regupathi -• Magistrates asked not to entertain privatecomplaints.• Police not to register criminal cases in suchcomplaints.• Erring magistrates warned of stringent action.• HC registrar asked to compile statistics on numberof private complaints.• Also asked to report on the orders passed by themagistrates concerned.
  • CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,Mylapore,Chennai - 600 004.Tel: +91 - 44 - 2498 4821BANGALORESuite 920, Level 9,Raheja Towers,26-27, M G Road,Bangalore - 560 001.Tel: +91 - 80 - 6546 2400COIMBATOREBB1, Park Avenue,# 48, Race Course Road,Coimbatore - 641018.Tel: +91 - 422 – 6552921EMAILinfo@altacit.comWEBSITEwww.altacit.comIn the present matters, it is ex facie apparent that, inspite of having weighed the nature of allegations injudicial scales and thereby knowing fully well thatlegally they are not supposed to refer the civildisputes for police investigation or take cognizanceby themselves, the said Judicial Officers concerned,with ulterior motives and to oblige the demand ofthe Bankers, illegally imputed criminal flavour to civildisputes, which action is not only inappropriate, andas such legally untenable, but elicits their unwantedintention in aiding one party to intimidate the otherparty.
  • CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,Mylapore,Chennai - 600 004.Tel: +91 - 44 - 2498 4821BANGALORESuite 920, Level 9,Raheja Towers,26-27, M G Road,Bangalore - 560 001.Tel: +91 - 80 - 6546 2400COIMBATOREBB1, Park Avenue,# 48, Race Course Road,Coimbatore - 641018.Tel: +91 - 422 – 6552921EMAILinfo@altacit.comWEBSITEwww.altacit.comG. SAGAR SURI & ANOTHER V. STATE OFUP & OTHERS (2000) 2 SCC 636in view of mixing the civil disputes with criminaloffences, the aggrieved parties are increasinglyinvoking the inherent powers of the High Courtunder Section 482 of the Code of Criminal Procedureto prevent abuse of the process of Court orotherwise to secure the ends of justice. The illegalpractice has made the Magistrate Courts breedingpoints of pendency of unnecessary criminal casesreflecting its adverse effect at all levels upto theSupreme Court.
  • CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,Mylapore,Chennai - 600 004.Tel: +91 - 44 - 2498 4821BANGALORESuite 920, Level 9,Raheja Towers,26-27, M G Road,Bangalore - 560 001.Tel: +91 - 80 - 6546 2400COIMBATOREBB1, Park Avenue,# 48, Race Course Road,Coimbatore - 641018.Tel: +91 - 422 – 6552921EMAILinfo@altacit.comWEBSITEwww.altacit.comCENTRAL BANK OF INDIA VS. RAVINDRAAND OTHERS (2001 (7) SCALE 351)Supreme Court has directed that even whena civil suit is filed, the Banks must furnish intheir plaint that interest/compound interestis charged at such rates and capitalised atperiodical rests as permitted by directives ofthe Reserve Bank of India.
  • CHENNAI3rd Floor, ‘Creative Enclave’,148-150, Luz Church Road,Mylapore,Chennai - 600 004.Tel: +91 - 44 - 2498 4821BANGALORESuite 920, Level 9,Raheja Towers,26-27, M G Road,Bangalore - 560 001.Tel: +91 - 80 - 6546 2400COIMBATOREBB1, Park Avenue,# 48, Race Course Road,Coimbatore - 641018.Tel: +91 - 422 – 6552921EMAILinfo@altacit.comWEBSITEwww.altacit.comThank You