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anil   30 March 2015

Credit card due

Hi,

 

I have a credit card on which I am pending due payment for the last 2 months. Due to Financial crisis, I was giving a commitment to bank people to make the payment by next month mid (April 2015). But still these collection agents are persistent and has gone too far claiming to go legally though I am committing to pay. They are asking me to provide a PDC  which I am not ready as I do not want to land into more offense by bouncing on the cheque. Since I was giving a date later to my next statement date they are asking me to give a written letter saying I will not be able to make the payment and they can proceed legally, to which I denied.

 

Wanted to understand on exactly the law standpoint on the credit card dues. Though I am not going to default, I am really not happy with the way things are just taken to havoc because of the people's ignorance on the law point.

 

Please advise



Learning

 3 Replies

Hardeep (Business)     31 March 2015

1) Dues have to be paid. Your hesitancy in not agreeing to PDC indicates you are still not sure whether you will be able to pay on that date. In which case it is better not to give the PDC.

2) There are clear rules on how collection agents should behave - plenty regarding this on this forum as well as on the net. If they are behaving otherwise, get evidence and proceed against all, including  the MD of the bank- in the first step by sending registered notices to all. But still, you have to pay the dues.

3) Realise that the Bank is extending a courtesy to you by agreeing to your request for late payments. There is a limit , however, and if they proceed to legal recourse things could get worse for you. Your Credit Rating for life and with all Banks - could be impacted adversely .

 

DISCLAIMER : General information and advice provided is without any warranties as to suitability for any use, correctness and application to any specific case. Please always take proper legal counsel . However, if it helped anyone even a little a " thanks" via the " Thank Contributor " button would be appreciated and would encourage me to keep on making efforts :-) . I am also always open to corrections and further learnings from more experienced Seniors here.For DIRECT contact with me / my friends and more law related informations / queries visit https://getjoy.in/r/q

anil   31 March 2015

Thanks Hardeep. Regarding to your point 3, is there any specific limit for this? Is it like a threat or legal action be taken even for a month's due?

My understandin was that...this could be with cases where there is no  payment for long term...legal actions are to resorted to.

 

Please advise

Hardeep (Business)     03 April 2015

There are no hard and fast rules for this...depends upon your past payment track and amount due. Normally just for a month's due bank will ask you to pay up at least the minimum payable and then carryover the rest to the next month, along with interest and penalties etc. it is better to pay at least the minimum, rather than be classified as a defaulter with all the tensions it brings along with.


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