• Credit card default in Australia

I lived in Australia till 2010. I was using a Credit Card and making all payments on time. Then in 2010 i moved back to India, I was making regular minimum payments till about 2013. Then my financial circumstances changed a bit and I was not able to make any further payments. I wrote to the bank asking for assistance in financial hardship, which is a facility that they provide. However my request was rudely rejected. 
I stopped making the payments, and I got reminders and legal action threats and so forth. I would get call early in the morning, however I did not answer any of them. This went on for a while and then they sold my debt to a collections company and on behalf of the bank they started contacting me in a rather aggressive way. Again, this went on for sometime and I got notices from the bank and the collections company about threats about legal action and so forth. 
The disturbing development is that, they got my work email id from somewhere, they may have tracked things down from social networking sites or pulled out details from the IP Address or something. I got an email this morning about some offers in settling the amount. 
I am still not in a situation to pay them back, I want to enquire the following details 
1.	Since the debt has been sold to a collections company, what can they do to pursue the debt here in India?
2.	If they decide to sue me for this and get a judgment against me, what implications does this have on me residing here in India? I am not a resident of Australia. Do civil court judgments have any sort of jurisdiction here?
3.	Would they call up my company and harass me? What can I do in such situations?
4.	Is it a crime? Would I be punished for it? 
5.	Should I change my number and address where I live? However I cannot change my work location, now that they have the official email address.
6.     If i get a legal notice from the court then what should i do?
Could you please elabote on the answers?
Asked 1 year ago in Civil Law from Delhi, Delhi
1. To recover the amount in India the bank can at the most file a case to this effect against you in a court of law. The collection company cannot file the case, the bank alone can. The collection agents will now make frantic calls to you to recover the debt.

2. If the court orders you to repay the amount and you do not then you may be imprisoned. However, it will have no legal bearing on your Indian citizenship.

3. The collection agents are infamous for naming and shaming the debtor. So they may call your company.

4. You can be prosecuted for cheating and breach of trust.

5. Changing number and address are short terms solutions which wont work in the long run.

6. If you get a legal notice then have your lawyer reply to it.

7. It is in your interest to repay the amount.
Ashish Davessar
Advocate, Jaipur
18049 Answers
444 Consultations
5.0 on 5.0
1) debt collection agency can seek to recover debt on behalf of bank 

2)they can seek to execute decree in india 

3) they cant harass you . if they do record calls and file complaint of criminal intimidation under section 506 of IPc 

4) deactiave your face book account , your linked in profile . , your email id 

5) change your mobile number . dont keep your profile on various job sites like monster .com 

6) if you receive legal notice contact a local lawyer and reply to the notice 

Ajay Sethi
Advocate, Mumbai
23079 Answers
1212 Consultations
5.0 on 5.0
1. The bank alone can file the case in india against you and not the collections company since they were not privity to the contract signed between u and the bank fr the loan.  Besides filling a civil suit, the bank can ask the court to attach your assets for recovery of the dues.

2. if you are put in the defaulter list then none of the banks will ever provide you credit facility neither will u be able to secure loan. It wont have any other implication as regards your stay in india.

3. Yes they can call up your company. and if they do then you may file a criminal complaint against those calls as the threatening calls would land them trouble with the offence of criminal intimidation.

4. if you do not repay, then yes it is an offence and you would make yourself liable to pay

5. changing name and address are temporary solutions and may help you for a while however it is not a permanent solution. 

6. you must reply the legal notice through your lawyer in case a legal notice is sent. 
Shaveta Chaudhary (Sanghi)
Advocate, Chandigarh
821 Answers
60 Consultations
5.0 on 5.0
Hi, These collections company they have no authority to call you and send a email.

2. If they want to recover the amount then they have to file a suit for recovery of money in India.

3. If you want to settle the matter then you can pay the amount through court only and don't give to the collection company.

4. If you received any notice from the court then contact the local advocate and contest the case on merits.

5. If the company harass you then lodge a police complaint against company and collection agent.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
4.3 on 5.0
If the bank has been sold the debt to a collections company, then the person from Collection Company will contact you for collecting the debt. In India, the debt can only be recovered through civil laws. If they filed case against you in Australia, it will affect your visit to Australia. For getting the money they can use any of the method. They can not do anything via threats. 
Ajay N S
Advocate, Ernakulam
1905 Answers
19 Consultations
5.0 on 5.0
1)The debts sold to collection company is not a legal arrangement between you and the collection company  so nothing to  worry about it even  if they approach court.
2) They have o file a suit, they have to prove the debt, the burden lies on them, you may challenge the case, the case will be tried by a civil court, the court if it decrees against you, you may agree before the court to repay them in easy installments, no cause to worry.
3)  NO they have to follow through legal process only.
4)  This may fall in civil jurisdiction
5) They will locate you through their sources, so dont avoid them, lett them file a civil suit.
6) Give a reply and abide by the court proceedings. 
T Kalaiselvan
Advocate, Vellore
13883 Answers
127 Consultations
5.0 on 5.0

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