The consequences of facing a civil case for credit card

Dear Questioner,

Thanks for writing to me.

I understand that you have an unpaid loan with a bank and now the bank has informed you that they are proceeding with a civil case against you.

I assume that the bank has already bounced your security cheque. Now, to recover the outstanding, the bank has two options.

1. To file a criminal complaint about the cheque bounce:

- When they file a criminal case, you either settle it paying the amount to the bank [after negotiations probably] or pay fines to the government.

Please note that the payment of fines is a kind of punishment to the accused, for committing the crime of 'issuing the cheque in bad faith'. The fine amount will go to government treasury and not to the bank.

2. To file a civil case for recovery:

The bank files a civil case to recover the amount from you. In this, the bank has to present before the court the adequate proof to show the transaction. Once the court gets convinced, a judgement will be passed.

If the documentary evidence is sufficient to prove your debt towards the bank, the court will ask you to pay the amount along with the court expenses to the bank.

In case you do not pay the said amount within a specified time after judgement, the court can even order the attachment of your bank account and assets.

Hope the above explanation is satisfactory.

Thank you.

Regards,

Rajasree Ravivarma