Lien marked in my savings account without prior intimation?

Question

Hi All, I have salary account from 2013, all of sudden there was a debit transaction of 'Lien marked' for 21, 663/- we were shocked, how come all of sudden without any intimation, bank will debit my salary account. Is this the way they do business with people like us. We came to know this transaction is related to my credit card transaction of Rs 2100/- in year 2008. Surprising they levied taxes, interest, compound interest calculating to 21, 663/- My saving account is salary account of my company, which has no connection with credit card. Since you have access to our accounts, will you nick the money from my savings account without informing us? Finally, I would like to conclude, that this kind of transactions should be settled with mutual understanding. Kindly request you to do the needful. thank you

Answer 1

Hi Shina,

At the outset, let me clarify that this site is designed by a group of senior Banking Professionals to assist Bank Customers at large to provide guidance for resolution of any complain/query/grievance in respect of financial services. This site does not belong to any Bank or a regulator, which may please be noted.

From your complaint it appears that you have not settled your credit card dues for a considerable period of time due to which a small outstanding has swelled into a huge sum. It is important to know that the banker under Indian Contract Act has the right to mark lien on your account for recovery of your dues to them.    

A lien is the right to retain all securities of the customer in respect of the general balance due from him (Section 171 of Indian Contract Act). Lien is of two types — particular lien and general lien. 

In general lien, the right of retainer is not only for the debt incurred for particular goods, but also for any general balance due. A general lien extends to general balance of accounts (by combining all accounts); extends to prior transaction; to properties/ securities which a banker has come in possession of in ordinary course of business viz cheques deposited for collection.

Your argument that the bank ought not to have marked lien on your salary account with respect to your credit card dues  is not tenable. The way out for you in the above circumstances is to arrive at a negotiated settlement with your bank. 

In case your branch is unable to sort out the issue you can write to Nodal Officer of your bank for taking a positive view and resolve the issues. It is very unlikely that you will receive any relief by approaching the Banking Ombudsman or other similar forum, unless you have any supporting documentary evidence to establish that your  attempts to settle your credit card dues in an amicable manner has been frustrated by your bank.

Regards

J R Mohandas