If I am a defaulter on an unsecured loan, and now due to unemployment am unable to pay the same, but bank is refusing to give a favourable settlement and reports to CIBIL for recovery, can all my bank accounts be frozen to recover all due amounts? Also will this affect any bank accounts where I am a joint account holder with a family member? How will this affect any business (pvt ltd co) of which I am a director?
CIBIL came into being after recommendation of the Reserve Bank of India which maintains a list of the defaulters as proided by the creditor Banks. Once a person's name is referred to CIBIL he will be disqualified to get certain services from the Bank like losing eligibility to get loan etc. It has nothing to do with freezing of accounts as it falls outside of its purview.