Can Banks Auto debit your Savings Account for Credit Card Dues
4 months ago
Respected Team , This is with regards to harassment by bank for last 2 years where they have debited my Savings account for a value more than 2.5 Lacs for Credit cards due that i feel is completely unacceptable. Over and above they have also issued me notices under SARAFASI Act for the homeloan from the same bank which is being duly paid. This is misuse of authority by banks and i need some assistance and help to file a suite.
A.With effect from October 1, 2021, under the new additional factor authentication rules, a bank is required to send a notification to the customer at least 24 hours before the auto-debit payment is to be deducted and allow the debit only after the customer has confirmed it. The pre-transaction notification will be sent via SMS, email etc. The notification will inform the cardholder about the name of the merchant, transaction amount, date/time of debit, reference number of transaction/ e-mandate, reason for debit, i.e., e-mandate registered by the cardholder. The cardholder shall have the facility to opt-out of that particular transaction or e-mandate. So only if you have given those rights to your bank for auto deduction than only they can do so. So, surely you can go ahead for filing a complaint against your bank
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A.Dear Client,
Banks now can use funds available in your savings or other accounts to clear outstanding balances if you do not settle your default on credit card debt. Banks may also seize your property or other assets to pay off your debts in the worst-case scenario. If you have set an auto debit instruction for your Credit Card payments, autopay gets activated within 7 days. If your payment due date is within the next 7 days, try to pay your card statement balance using your routine payment mode. The Reserve Bank of India (RBI) has issued new auto-debit guidelines that card-issuing banks should adhere to from October 1, 2021. These new rules are introduced to regulate recurring payment transactions using credit cards, debit cards, and prepaid instruments. As per guidelines, for payments below INR 15,000, the cardholder will receive a pre-debit notification from the card-issuing bank 24 hours prior to the transaction, via email or SMS. It will include details such as mandate ID, transaction amount, date and time of debit, and the reason for debit. Then, the cardholders need to approve transactions that exceed INR 15,000 via OTP (one-time password) for a successful auto-debit payment. On receipt of the pre-transaction notification, the customer (the cardholder) will have the liberty to opt out of that particular transaction along with the ability to view, modify, or even cancel any auto-debit mandate set on their card. If a loan has not been repaid for more than 180 days(six months), the lender Bank is allowed to file a case against the defaulter under section 138 of the Negotiable Instruments Act 1881. The banks may also make use of Debt Recovery Tribunals(DRT) in order to recover the dues they are owed from the defaulter borrower. . As regards the issue of notice under Sec.13(2) of the SARFAESI Act, 2002 this is to inform you that as per sub-section (2) of Sec.13 of the Act, a creditor is required to issue a notice in writing to the borrower to discharge his liability within sixty days of the notice when such borrower has defaulted in repayment of secured debt or any installment thereof, and his account in respect of such debt is classified by the secured creditor as non-performing asset(NPA). If the borrower fails to discharge his liability despite the service of notice, the creditor is free to recover the debt through the modes prescribed in sub-section (4) of Sec.13 of the Act, such as – taking over possession of the secured assets of the borrower, taking over management of the business of the borrower etc. So, on receipt of the notice from the Bank under Sec.13(2) of the SARFAESI Act, 2002, you need to hire the service of an Advocate handling DRT cases for guidance and steps.
Banks now can use funds available in your savings or other accounts to clear outstanding balances if you do not settle your default on credit card debt. Banks may also seize your property or other assets to pay off your debts in the worst-case scenario. If you have set an auto debit instruction for your Credit Card payments, autopay gets activated within 7 days. If your payment due date is within the next 7 days, try to pay your card statement balance using your routine payment mode. The Reserve Bank of India (RBI) has issued new auto-debit guidelines that card-issuing banks should adhere to from October 1, 2021. These new rules are introduced to regulate recurring payment transactions using credit cards, debit cards, and prepaid instruments. As per guidelines, for payments below INR 15,000, the cardholder will receive a pre-debit notification from the card-issuing bank 24 hours prior to the transaction, via email or SMS. It will include details such as mandate ID, transaction amount, date and time of debit, and the reason for debit. Then, the cardholders need to approve transactions that exceed INR 15,000 via OTP (one-time password) for a successful auto-debit payment. On receipt of the pre-transaction notification, the customer (the cardholder) will have the liberty to opt out of that particular transaction along with the ability to view, modify, or even cancel any auto-debit mandate set on their card. If a loan has not been repaid for more than 180 days(six months), the lender Bank is allowed to file a case against the defaulter under section 138 of the Negotiable Instruments Act 1881. The banks may also make use of Debt Recovery Tribunals(DRT) in order to recover the dues they are owed from the defaulter borrower. . As regards the issue of notice under Sec.13(2) of the SARFAESI Act, 2002 this is to inform you that as per sub-section (2) of Sec.13 of the Act, a creditor is required to issue a notice in writing to the borrower to discharge his liability within sixty days of the notice when such borrower has defaulted in repayment of secured debt or any installment thereof, and his account in respect of such debt is classified by the secured creditor as non-performing asset(NPA). If the borrower fails to discharge his liability despite the service of notice, the creditor is free to recover the debt through the modes prescribed in sub-section (4) of Sec.13 of the Act, such as – taking over possession of the secured assets of the borrower, taking over management of the business of the borrower etc. So, on receipt of the notice from the Bank under Sec.13(2) of the SARFAESI Act, 2002, you need to hire the service of an Advocate handling DRT cases for guidance and steps.
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A.Dear client,
If a bank has debited an amount, they need to give you the exact statement of the same.
If anything is charged beyond the exact amount, then you can sue them.
Kindly, contact an advocate immediately to get the exact legal guidance..
You can issue them a legal notice seeking all the clarification.
For the case filed against you, if you receive the summon immediately contact an advocate for the same and you have to counter it along with the necessary documents you have.
Consulting an advocate in person along with all the details and documents you have will specifically help you in serving the purpose.
If a bank has debited an amount, they need to give you the exact statement of the same.
If anything is charged beyond the exact amount, then you can sue them.
Kindly, contact an advocate immediately to get the exact legal guidance..
You can issue them a legal notice seeking all the clarification.
For the case filed against you, if you receive the summon immediately contact an advocate for the same and you have to counter it along with the necessary documents you have.
Consulting an advocate in person along with all the details and documents you have will specifically help you in serving the purpose.
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