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niyata   24 February 2015

Credit card loan repayment after a gap

Dear All,

I'm from Chennai I used credit card for 3 years without any lag in paying the dues. suddenly i got fired from my job and it took around one year to come out of the crisis and settle down now i want to repay it but the bank has sent me a demand notice asking me to pay Rs.103389/- instead of original balance Rs.64,000/-. I do not know how to approach them as i am scared of harrassment ( Stories i heard from my friends ). I'm interested in paying the loan. Please help on how to proceed

Appreciate all for your time and support in advance.

Warm regards,



 7 Replies

Anjuru Chandra Sekhar (Advocate )     24 February 2015

They mention it is interest free loan and say there is 2% service charge in advertisements if it is citibank credit card.  They do not mention it is 2% per month or annum.  This is all violation of Consumer protection Act, 1986.  Approach consumer forum after finding out under which section you can make them liable.  It needs some time to apply your brain into it and which law he flouted.  They generally flout laws like this.  It is not difficult to proceed against them and get favorable judgment.  Do not fear tell them to go to court.  Any recovery agent must follow the rbi guidelines.  Read the guidelines of RBI in the following weblink you will get courage to face them:

niyata   25 February 2015

Dear Sir,

Many Thanks for taking time to reply for the query i posted. I will definitely go through the details you have provided.

They have quoted Section 62 in the demand notice



Advocate Ravinder (Advocate/Attorney)     25 February 2015

Credit Card rules are different from General Banking rules.  You should not stop monthly payment.  If you stop payment the interest will be calculated for every month @ compoundable interest. Over and above, there will be financial charges, late payment charges, service charges, cess, and number of charges.  If you can sort out the problem and come to a best figure pay the amount.  If they do not reduce the payable amount, it is better to give legal notice and then file a consumer case against them. 

T. Kalaiselvan, Advocate (Advocate)     01 March 2015

The interest on defaulted amount will get compounded hence the charges will look exorbitant.  You may talk to the Bank manager directly and get your loal restructured and arrive at a compromise for one time settlement too.

Biswanath Roy (Advocate)     02 March 2015

There are some legal ways to bang the exorbitant demand against Credit Card loan if the borrower follows legal action against the Bank.

K.P.Satish Kumar (Advocate)     16 March 2015

File a suit and negotiate. you can get maximum waiver.


If you are really interested in repayment, approach the concerned bank and go for a one time settlement.Waiver of penalty is the sole discretion of the bank.Plead with them with them and they will certainly reduce the penalty.

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