Settlement Credit Card
Rima
(Querist) 16 February 2011
This query is : Resolved
I am having a credit card (SBI) due. The card limit was 11000 issued sometime in the year 2002. I used full limit and was making monthly payments. But suddenly due to some problem, I defaulted in the middle of 2003 and stopped paying. Circumstances in my life forced me to be a defaulter.
However now again I am earning money regularly. So I want to repay the loan. But 11000/-(eleven thousand) due within this 8 year became 1,36,000/-(One lac thirty six thousand) according to them. They are not ready to disclose rate of interest or any explanation.
I know the debt is time barred but still I want to repay as I had taken and used the money.
Several time during the last few months I talked with the customer care execs of SBI Cards for settlement but they are not agreeing to take less than 45,000/- (charging 50% interest)
This amount I again can not pay.
If they would have agreed to take nominal legitimate interest plus the principal I could have repaid this time.
Do I have any option?
Can I refer the matter to Lok Adalat?
If I do so, whether such referral will re-open the limitation period and in such case whether I will become liable to the whole debt as per their claim?
Can any body help me by providing information and advice?
Thanks in advance..
Advocate. Arunagiri
(Expert) 16 February 2011
You collect the settlement letter from them. Now days the credit care settlements are very attractive. I dont want to disclose the exact plan of collection.
Devajyoti Barman
(Expert) 16 February 2011
You continue to negotiate with the bank till the amount is settled on amicable terms. After some time the bank would definitely come down further. You can not approach Lok Adalat though the Bank can.
NOTTAM VENKATASAMY
(Expert) 16 February 2011
IF YOU APPROACH LOKADALAT THAT TIME YOU AND THE BANK SITTING BEFORE THE MEMBER OF THE FORUM THAT TIME THEY WILL ARRIVE ONE AMOUNT THAT IS VERY EASY TO SETTLE THE ENTIRE PROBLEM.
malipeddi jaggarao
(Expert) 18 February 2011
If you go Lokadalat certainly Bank will invoke revival of debt which is time barred. The best way is caculate interest at 12% p.a. simple rate added to the amount utiised and draw cheque in favour of SBI. The cheque should not be from your account, but one of your family member's account and forward the same to SBI. Let your family member forward it under a covering letter clearly mentioning that it is a time barred debt and the amount is paid in full and final settlement of dues under credit No....of Rima...
Wait and see whether the Bank presents for realisation. If it presents the cheque, your intention for making payment to the legitimate debt after regaining the repayment capacity is fulfilled.
