Whoever lends you money will definitely expect it back.

This also mean that they will take legal action if need be. Similarly when bank or a financial institution lends you money in form of loans etc. they will also take the extreme steps like filing a suit or referring the matter to Debt Recovery Tribunal after exhausting all the measures such as reminding the clients orally as well as in writing. All borrowers are given a fair chance to approach the bank with specific difficulty in meeting instalment/ dues, (rescheduling or restructuring the outstanding). If the customer still ignores to the various opportunities or does not come forward with a definite plan of action to repay the dues, the bank can go for legal proceedings. Each notice indicates how the recoverable amount has been worked out, including the rate of interest/ penal interest and other charges if any. Whenever any cover is obtained, banks prefer to claim and adjust the amount towards its dues. In fact, by doing so, the bank saves on court fee. More importantly, its recoverable dues will also reduce. In case of a clear-cut case, bank will not forego this opportunity. You should approach a lawyer with full details if you feel that there is some injustice in your case. But you should remember that the bank has a right to seek legal path for recovery of its legitimate dues. The approaches followed by different Banks for recovery and follow up of credit card dues are as follows: ICICI BANK: i) If the Card Member fails to pay the Minimum Amount Due by the date indicated in the billing statement, it shall be treated as default. In case of default, the Bank can forward the default report to the Credit Information Bureaus or to such other agencies as approved by law. The time period between the payment due date and the billing date indicated on the billing statement is considered as the notice period for reporting a Card Member as a defaulter. ii) Procedure for withdrawal of default report and the period within which the default report would be withdrawn after settlement of dues: *The Bank submits the Card Member's data to CIBIL - Credit Information Bureau (India) Limited every month in the format prescribed by CIBIL. This data includes the repayment status of all Cardholders, both defaulters and current, for the previous month. CIBIL uploads the submitted data onto their server in another thirty days. iii) Recovery of dues in case of death/permanent in capacitance of the Card Member: It shall be in accordance with the applicable laws after giving sufficient notice for payment of dues and all information regarding the outstanding dues, to the successors/nominees /legal heirs of the Card Member. iv) ICICI Bank offers free insurance cover on certain cards through a tie up with ICICI Lombard General Insurance Company Limited or any other Insurance Company as may be decided by ICICI Bank from time to time. For insurance details, cardholders are advised to go through the brochure in the welcome kit or refer to www.icicibank.com. HDFC BANK: In the event of default, the Card member will be sent reminders from time to time for settlement of any outstanding on the card account, by post, fax, telephone, e-mail, SMS messaging and/or engaging third parties to remind, follow up and collect dues. Any third party so appointed, shall adhere fully to the code of conduct on debt collection.

General rules of RBI governing follow up and recovery of credit card dues are as follows: (a) In the matter of recovery of dues, banks should ensure that they, as also their agents, adhere to the extant instructions on Fair Practice Code for lenders (circular DBOD.Leg.No.BC.104/09.07.007/2002-03 dated May 5, 2003) as also BCSBIs Code of Banks Commitment to Customers(those banks which have subscribed to the BCSBI Code). In case banks have their own code for collection of dues, they should, at the minimum, incorporate all the terms of BCSBIs Code referred above.

(b) In particular, in regard to appointment of third party agencies for debt collection, it is essential that such agents refrain from action that could damage the integrity and reputation of the bank/NBFC and that they observe strict customer confidentiality. All letters issued by recovery agents must contain the name and address of a responsible senior officer of the card issuing bank whom the customer can contact at his location.

(c) Banks /NBFCs / their agents should not resort to intimidation or harassment of any kind, either verbal or physical, against any person in their debt collection efforts, including acts intended to humiliate publicly or intrude the privacy of the credit card holders family members, referees and friends, making threatening and anonymous calls or making false and misleading representations.

(d) The banks should also ensure to comply with the guidelines in respect of engagement of recovery agents (circular No. DBOD. No. Leg. BC.75 /09.07.005/2007-08 dated April 24, 2008) issued by RBI. These guidelines inter-alia cover aspects relating to i) engagement of Recovery Agents including verification of antecedents of their employees by agents, (ii) incentives to recovery agents banks to ensure that contracts with the recovery agents do not induce adoption of uncivilized, unlawful and questionable behaviour or recovery process, (iii) methods followed by recovery agents, (iv) training to recovery agents , (v) taking possession of property mortgaged /hypothecated to banks, (vi) use of forum of Lok Adalats, (vii) complaints against the bank/recovery agents and (viii) periodical review of the recovery agents mechanism.