Can't pay your credit card bill? You could face criminal charges2 min read . Updated: 03 Dec 2019, 10:10 AM IST
- The takeaway here is that no debt is too small and you could be facing criminal charges against you if you fail to repay the debt
- A case under the Negotiable Instruments Act is filed when your credit card bill payment cheque bounces
Data from the recently released SBI Cards IPO prospectus reveals that the company has filed 19,201 cases under Section 138 of the Negotiable Instruments Act and 14,174 cases under Section 25 of the Payment and Settlement Act 2007. A case under Section 138, is typically filed when a cheque is dishonoured due to insufficiency of funds (colloquially known as cheque bouncing). A case under the Payment and Settlement Act is filed when there is a failure in electronic payments due to insufficiency of account balance (think auto debit for bill payment). Interestingly the cumulative amounts for these cases was just ₹25.52 crores and 72.6 crores respectively. This implies an average case of just ₹13,290 and ₹51,220 in credit card debt under the two acts respectively. For you the takeaway here is that no debt is too small and you could be facing criminal charges against you if you fail to repay the debt.
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