pre-litigation credit card
Querist :
Anonymous
(Querist) 14 August 2010
This query is : Resolved
hello sir,
my friend has used his credit cards and has been not well since the last year and out of job, and this is the reason not able to pay his dues, now he has got a pre-litigation notice, please tell what we can do, now he is getting back to normal and will be starting up with job soon, and he cannot pay the amount what they are asking him to pay, they have added a lot of interest also. please tell us what to do in this regards
Guest
(Expert) 14 August 2010
NANDKUMAR B.SAWANT.M.COM.LL.B.(MUMBAI),ADVOCATE
MOBILE.9271971251,9960223100
e.mail.adv.nbsawant@yahoo.co.in
e.mail.nandkumarbs@sify.com
REGARDING THE CREDIT CARD OUTSTANDING DUES KINDLY NOTE THAT.
1.YOU MAY KINDLY SEND COPY OF NOTICE YOU HAVE RECEIVED.
2 IN GENERAL IN CASE YOU DO NOT HAVE MONEY TO REPAY THE AMOUNT AND NOTICE IS SENT BY THE BANK TEHN MAKE AN APPLICATION AND ASK FOR ALL RELEVENT COPIES OF THE DOCUMENTS AND ALSO INTEREST AND ARREARS STATEMENT.YOU MAY RAISE OBJECTIONS TO THE RATE OF INTEREST AND ALSO ADDITIONAL PENAL INTEREST CHARGED AND OTHER BANK CHARGES,ADVOCATE FEES ,POSTAL CHARGES ADDED IN THE SAID STATEMENT.
3.YOU MAY REPLY THE SAID NOTICE MENTIONING ALL FACTS AND SICKNESS.AND PRAY FOR LONG TERM INSTALMENTS.
4.IN CASE BANK IS NOT AGREEING FOR THE LONG TERM INSTALMENTS THEN YOU MAY FILE A WRIT PETITION TO THE HC.AND YOU WILL SUCCEED IN GETING LONG TERM INSTALMENTS.
KINDLY NOTE THAT I HAVE SUCCESSFULLY GOT QUASHED ARTIBRATION AWARD OF DELHI ARBITRATOR OF DEL.COOP SOC.AND GOT REDUCED THE HEAVY RATE OF INTEREST CHARGEDBY OTHER SIDE AND EVEN ARBITRATION COST OF RS.10000/WAS QUASHED AND LONG TERM INSTALMENTS OF FOUR YEARS WERE ALLOWED BY THE HIGH COURT OF DELHI.PLEASE NOTE.
PRECAUTIONS TO BE TAKEN.NEVER ACKNOWLEDGE THE RENEWAL WITHOUT CAREFULLY STUDING RATE OF INTEREST CHARGED BY BANKS.AND NEVER ISSUE ANY BLANK CHEQUES TO BANK FOR REPAYMENT OF LOAN.AS THOSE CAN BE MISUSED BY WRITING AMOUNT AND GETING DISHONOURED AND BY FILING CRIMINAL CASE UNDER SEC.138 OF N.I.ACT.
YOU MAY WRITE AND SEND DETAILS WILL HELP YOU.
GOOD LUCK.
s.subramanian
(Expert) 14 August 2010
you take up the matter before the banking ombudsman having jurisdiction over the area.
you can appear personally there and explain your position and seek particulars about the rate of interest etc. you can also object to the excessive rate of interest and seek reduction.if it is not fruitful,you take the same defence when the matter is taken up by the bank to the court by way of a suit. if you go to court first it would be expensive. therefore you can wait and proceed thereafter.
Devajyoti Barman
(Expert) 14 August 2010
Yes , that apart the bank also calls for conciliation proceedings. If it so arranges then appear and settle the matter on amicable terms. Generally if you pay most of arrears principal amount the bank settles waiving other charges.
Koumarish Bhattacharya
(Expert) 15 August 2010
Conciliation proceedings, mainly before the Lok Adalats are really useful. I have reduced the amounts demanded to a minimum many times. As per my experience, there may be a reduction of 80% or more of the amount demanded in the notice. However, it depends upon the representative of the bank.
