No gain, only pain

Author: Hemanth Kashyap Date: 24 Mar 2008
Bank gives woman credit card and loan, but takes away her fixed deposit when she defaults on payments



Ratna Shankar swears she will never touch a credit card after her bank took away Rs 5 lakh from her fixed deposit in lieu of credit card dues and an outstanding loan.

The elderly housewife from Basaveshwara Nagar said she was given a credit card by ICICI Bank as she had a fixed deposit in the bank. She said she used the card and her bills ran upto Rs 1 lakh. She also took a loan of Rs 2 lakh in 2006 on the deposit.

“I paid back close to Rs 1 lakh but could not make the monthly installments as I fell ill after a few months. I was shocked to discover that the bank took away Rs 5 lakh from my fixed deposit with them as I had defaulted on a few loan installments and credit card payments,” she told MiD DAY.

Ratna is angry that the bank not only took away her fixed deposit, but has also been sending her reminders that she owed them Rs 1,12,000.

“I have assured them that I will repay the entire loan. I suggested that they deduct Rs 3 lakh from the fixed deposit and return the balance to me, but they haven’t made any commitment on this. Instead, they told me that I had to pay them Rs 1,12,000,” she said.

Bank officials reportedly told her that under section 171 of the Indian Contract Act, they were allowed to take such a step.

Gidappa, secretary of the Credit Card Holders’ Association of India, said, “The case has come to me very recently. I plan to send a legal notice to ICICI Bank.”

“Many such cases are reported every day. We need to check our data. We cannot comment until we have ascertained facts,” said an ICICI Bank spokesperson.