SCB Credit Card Settled in year 2001 & now a Legal Notice to Pay 7,71,774 !

POSTED BY Rahul Kashyap ON November 2, 2013 9:02 am COMMENTS (15)

Dear Manish,

I am an NRI, settled overseas for overseas, recently came to India on personal visit.

I had a Standard charted bank credit card back in 1997 till 2001 (bearing no: 4129038080164369). In the year 2001, I went to the bank and cancelled my credit card and settled the outstanding of somewhere around 40k or 45k.They gave me some settlement discount and I paid them cash and the very manager cut my card into pieces. They said they will send No Dues Certificate by post and also that, credit card outstanding was settled in full and final.

I don’t exactly remember if I had received this letter and all these years there was no correspondence from SCB.

In 2009, after say around 8 years of my settling the outstanding at SCB bank, some collection agency people started calling my home in Hyderabad and started threatening and mentally harassing my mother, asking her to pay the outstanding of 1.7 lac or some odd amount approximately, (I don’t exactly remember the amount).

This was so annoying for us as they also took my New Zealand mobile number and started calling me in odd hours. This was sheer mental harassment both for my mother and for me. Hence, I called up SCB call center, this was early 2010 and spoke to the supervisor and explained the matter. He then started seeing my credit card history on his system and acknowledged: that an amount of 40k or 45k was paid in 2001 and since then there were no transactions in the card. I told him again that it was my full and final settlement amount that I paid and cancelled the card so there’s no point of any further transactions.

After long discussions, he said he there might be some mistake and will look into the matter and fix the issue. And after that there were no calls and again no correspondence from SCB.

Now (year 2013), 3 years after I spoke to SCB call center, I came back to Hyderabad, India, on a personal visit and on 21st October 2013, I received a letter from advocate stating they have been appointed by SCB and have right of collecting the payment of debt from me for the credit card, which I actually cancelled and paid in full and never used after 2001.

Their letter says that I owe 7,71,774.9699/-(Seven Lac Seventy One Thousand and Seven Hundred and Seventy four rupees and ninety six paise) on my credit card and asks me to attend a conciliation camp for settlement of the amount on 09-11-2013 or they will take legal action and recover the outstanding.

I am extremely disappointed, and troubled by the way a professional bank like SCB fails to address the issues. It’s been 12 years that I have cancelled and settled the card. And now, this legal notice and no correspondence as such from the bank till date.

I called up the call center on 27th October 2013, to get clarifications:

1.   The CSR who picked up the call, Sandhya  kept me on hold for one hour, and no response.

2.   Second time I called, CSR Hamsa, gave me reference n.o 201310197463 and said that a manager will call you and no one called till date.

3.   Third time on 30th oct’13, CSR Vidya said they have sold the account to sana fin lease and SCB can’t retrieve my history and tell me what went wrong.

I even sent them a mail yesterday to, and I received a mail saying they have sold that account to M/s. Shaha Finlease Pvt ltd and asked me to contact them for repayment of dues.

My credit card was issued by SCB bank and now, the very bank refuses to address the issue inspite of their fault!!

I have cancelled and settled the card in 2001 and after 12 years, they send me a legal notice for the amount I haven’t used at all??

I have lost complete trust in SCB, hence, I am writing this letter to you.

As an NRI and living overseas for long, I am less aware of legal issues and how to deal with them.

Request you to please help so as to what should I do, where do I complaint and how should I solve the issue in my short visit.

Waiting for your kind advice

 Thanks and Regards

 Rahul Kashyap.

15 replies on this article “SCB Credit Card Settled in year 2001 & now a Legal Notice to Pay 7,71,774 !”

  1. krishnamoorthi says:

    The matter is time barred; Now all recovery actions fall under the criminal jurisdiction and the victim shall possess the resolve to tackle the problem accordingly.

  2. Vivek Gupta says:

    I have applied for a credit card with SCB, which is under process. But after reading this story, I am worried if I should really start a new relationship with this cheater bank.

    Please share your experience if your problem got resolved. How did you get the solution?

    1. Vikram Singh says:

      I have the similar issue I had settled my cc in 2005, I have the receipt of the payment received by them, I also have the letter clearing stating the settlement account. The SCB is not issuing my No dues certificate. This has bought my credit rating down.
      Please advice.
      Vikram Singh

  3. sk Maniruddin ahammad says:

    I am Maniruddin ahammad.i want Noc certificate

    1. So why dont you talk to your lender for this .

  4. suresh says:

    Did u find a solution to your issue. now i am facing the same issue almost like u…. help me if u got a solution on this on my email

  5. ashalanshu says:

    Dear Rahul, if you are worried about illegal means, please file a police complaint in advance for protection of your mother as she is in India and the easy target for SAHA people.

    Legal part we already discussed, hence not repeating again.



  6. ashalanshu says:

    Dear Rahul, instead of doing something, let the Saha finlease prove that you actually own that much amount. Let the court case began from their side. Once it’s in court, the acount statement ‘ll be there and the payment made by you for 40-45000 Rs. ‘ll be there and you can fight your case then by appointing an advocate. this ‘ll be less problematic to you.



    1. Rahul Kashyap says:

      Dear Ashal,

      Thank you so much for posting a reply and showing your support to me.
      But my only concern is, if saha finlease dosent file a case and just prolongs the matter for some years and send me again a bill of say,, 10 lacs then?
      And also, if they use illigal methods inspite of sending a lawyers notice, how should I deal with it?
      As such this issue has caused me lot of lot of distress, how to end this?



      1. Raj says:

        File a complaint at a police station
        A formal complaint should be filed against the bank and the recovery agency. If the police refuse to file a case, the magistrate can be approached for the same.

        2) Injunction suit against the bank and recovery agents
        A civil injunction suit with an ad interim relief can be filed against the bank and recovery agency in the civil court. This can be done to ensure that bank officials and recovery agents do not visit your home for recovery of dues.

        3) File a complaint with the Reserve Bank of India (RBI)
        After receiving several complaints from the public against banks and seeing several litigations filed against the “threatening” mode of recovery, the RBI issued guidelines for recovery agents to approach the defaulters. Therefore, in case the defaulters feel threatened, they have the option to contact the institution and file a legal complaint.

        4) Defamation suit
        If the debt recovery is based on erroneous information which led to the loss of your CIBIL score, then you can file a defamation suit against the bank and recovery agency.

        5) Trespass complaint
        If the recovery agents of the bank illegally entered into your house without authorised permission, then a trespass complaint can be filed against them for violating your rights.

        6) Extortion complaint
        If the recovery agents forcefully recovered the amount, an extortion case can be filed against them.

        1. Jagoinvestor says:

          Thanks for sharing this!

        2. Jagoinvestor says:

          Thanks for sharing that info

  7. I think you have already suffered a lot and in this case, SCB has not taken care of the case properly and you are suffering due to their fault . If you have already got the NOC from them. Then first file a case against SCB in consumer court (make sure you mail them and expect a reply first) .

    Also complain to banking ombudsman on this . The problem is SCB will not admit their mistake now and the issue will get dragged a lot . So now the only option to you is banking ombudsman and consumer court !


    1. Rahul Kashyap says:

      Hi Manish,

      Its been 12 years now, and I dont have the copy of NOC with me. How do I prove my case as SCB isin’t ready to check me credit card history to see where the problem was. They just keep saying “they can’t retreive the information as they have sold those accounts to saha finlease.
      And what about the notice they sent me asking me to attend conciliation camp to be held on 11th November?

      Please advice.

      Rahul Kashyap.

      1. winston says:

        rahul .

        any update on this issue as i am also facing this similar problem.need some help

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