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PRASANNA NARASIMHAM (NIL)     14 November 2014

Credit card payment default

Sir,

I have used a credit card from a leading private Bank and was regularly repaying till the month of March 2014. There was a balance of around Rs 30,000/- at that time.

I had to quit my private job because of age and now I have crossed 60 years of age.

I am jobless as of now and do not have regular source of income.  I have been repeatedly requesting the bank to close my card and wish to go for settlement.  They are not ready to do so and continue to add interest, which is getting compounded.  I am unable to repay. Bank refuses to go for settlement.

Please suggest me to avoid legal action b y the bank.  In case they go for legal action, what should I do?  Please suggest me.



Learning

 2 Replies

Dalip Singh (Advocate)     14 November 2014

At this stage,  when the bank has refused to go for settlement,  wait for the legal action to be initiated by  the bank.  Do no make any payment in the said loan account, otherwise the same would be appropriated in the interest accrued so far.  In case bank files recovery suit in the court of law, contest the case or alternatively,  settle the account before the court and make the payment in the court itself.  Otherwise,  in case you make a submission,  the court may refer the case to Mediation Centre where you can make the payment as settled in the Mediation Centre, on mutually agreed terms and conditions, in installments. 

Kumar Doab (FIN)     14 November 2014

Pay the borrowing and demand that bank shall cleanse the credit history in writing and it shall have no bearing on your credit score/loan taking ability in future.... Agree to pay the principle/reschedule..... Any part payment/admission of debt shall reset the clock for limitations....

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