CREDIT CARD LOAN – bank using recovery agent after 9 years

[srinivasa reddy]

Sir,
I have taken credit card loan and personal loan from one Bank in 20006,thereafter i have paid maximum amount by me in regular installments still 2008, there after I am unable to pay the remaining small amount.
1.whether Bank has got right to recovery of money through private agents,is it legal..? is it crime …?
2> My last payment was made in the year of 2008 ,is it time barred loan …? or within the limitation…?
Regards,
KS REDDY

[Dr. Ashok Dhamija]

Limitation period for filing a suit for recovery of money is 3 years. This applies to recovery of loans by banks also. However, if you have acknowledged the loan, paid any instalment or paid interest, etc., in the meanwhile, then the limitation period may start running afresh and will be counted from such date. So, if you have not acknowledged the loan in any such manner, then your credit card appears to be time barred.

There does not appear to be any legal bar to the bank authorizing a private recovery agent for recovery of loan in a lawful manner. However, such recovery agent cannot use any illegal method, such as of pressuring or threatening etc., to recover the loan.

     

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Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

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