Credit card and personal loan default


plz help to get some information.. I was workin with Company ABC n i took person load againts my salary and now i hv changed my company n working with XYZ company, M unable to pay the loan i took form fullerton india , are you authorise to come my new company XYZ TO trace me or no



I have defaulted credit card payment of 2 bank in 2008. Due to financial issues, i was not able to pay the amount.

I wanted to pay the amount now. Please suggest whom should i contact, bank or credit agency who are harashing me from time to time. 

Please help.


1.My brother got a loan from icici to build house in a gifted land(500sqyards) from my dad.  That land link documents  We got them from 1956 from original seller.

2.We built 75% of the new house from the 16 lakhs taken from icici bank in 2005 of ( total sanctioned amount of 25 lakhs from icici bank.)

3.One day we got notice that further construction should be halted (from sub register office)as that land belongs to wakf board long back  (aurangajeeb donated that land to mosque when he stayed there for hault while moving  for a war), later farmers sold that land to subsequent owners before 1956)

4.We immediately intimated this situation to icici bank and requested them to wait until this dispute is settled. Instead they choose smartly to start emi for 16 lakhs with out our consent.

5.We completely shattered as we already spent about 30 lakhs all together(loan +14 lakhs) from our pockets in 2005.

6.We asked icici to be feasible regarding this situation but didn’t agree, so we gave up the property and didn’t  bother to there emi’s.

7.They sent notice for foreclosure, we agreed for it and its auction. But nobody bought that property  as everybody know its got litigation from wakfs board.

My query is that how much we are responsible  to this home loan default and how icici bank is not. What are my rights, as icici bank reported to cibil that we are defaulters(even when we agreed to icici bank to auction the property). They even sent foreclosure advertisement as a mail to us.

Now due to this we couldn’t buy home even now because of bad cibil report(score:644 and default status: blank, amount od:17lakhs, till date due:27lakhs).

Is there any way to fight back for getting our cibil rating unaffected and settle the issue in neutral terms of court (and what are our prospects and rights to do so). Or its just for us to suffer  our bad fate.




Since the day I have posted my opinion on this query I have received numerous calls of people who are credit card defaulters of pitty pitty amounts such as 10k, 50k, etc. or who have paid the principal amount but still keep receiving threatening calls from the banks to deposit the interest amount else will be prosecuted in criminal court.

Few example calls received by such people are:

"I am an advocate calling from High Court of so and so state and there is a criminal case filed against you for not making the credit card payment which you were suppose to pay in year 2005 or so. Make the payment else you will have to go to jail."

"I am calling from so and so police station and there is a non-bailable warrant issued against you. Make the payment else we are coming to arrest you."

Below is certain information for all you people who get such calls:

Firstly, these people who call you are neither advocates nor police. They are recovery agents on bank panel. 

Secondly, Credit card issued by banks to you are unsecured loans and is purely a contractual liablity. In other words it is a civil issue.

Thirdly, No criminal case is made out for such pitty amounts untill and unless you have issued some cheque against the payment and the cheque has bounced. Then you are liable under Section 138 of NI Act, which is also a bailable offence. Otherwise the bank has to go in a civil recovery case. Even for that there is a limitation of 3 years to file a case.

Fourthly, No criminal case of such nature is filed in any High Court.So anyone claiming to have filed a criminal case against you in High Court is defintly a recovery agent.

Fifthly, the police has no authority or power to recover the money from you and become a recovery agent of private bank.

Sixth, Always take an NOC from the bank in writing when you settle the loan or credit card outstanding full and final with the bank.

Seventh, Banks do one smart play with you that if you are a defaulter of a pitty amount they will not file a recovery suit against you but will keep updating your defaulter image with CIBIL. This distroys your credit history and rating and disables you from getting any other loan or credit card in future. If the bank has not filed a civil suit within time but still distroying your CIBIL credit then contact a good lawyer.

Last but not the least, if you use credit card use it wisely and pay the due amount on time.


P.Bashista, Advocate

Supreme Court of India




Hello Bashista Sir,

Sub: Could not pay my Credit Card Outstanding and Personal Loan EMIs

I was reading the bolgs on CC defaut and Personal Loan default. I need your support, I am really worried and looking for a suggestion which could help me to come out of the current situation:

I was working as a Manager in one of the top MNCs based in Delhi (NCR), I have lost my job and have no clue how should I handle the debts which I owe:

I have 3 Personal Loans: 2 with HDFC (Outstanding amount: 3 Lacs and 2.5 lacs) and 1 with Axis (95000 Out Standing) Apart from this, I have two credit cards with outstanding amount of 235000 and 45000K, with HDFC and ICICI bank.

I am not sure what to do and what is going to happen with me. I only have Rs. 25 in my account. Please suggest me, what should I do. I am least worried about my CBIL score. I want a settlement. I really cannot take a pressure any more. I have not slept properly from last 5-6 days. I am a married man and have two daughters, their education is also at stake. Please help me out, looking out for your support and plesae please reply to my issue.

I will be thankful to you.




Thank you so much for the valuable information Mr. Bashista. That was an eye opener!!  


Deall All,

I would like to pose a question,in 2007 i was working in a IT company in Noida.A lot of Bank employes used to come to our office and would offer us a Credit card or Loan with minimum or No documents apart from our ID cards and Salary Certificates and a Bank such Bank guy came in and told me to take a Personal Loan,i told him that i do not belong to Noida and i live in a rented House.He told me to give him my Id card and salary Certificate and took my Hometown address without any Valid Adress Proof.I guess he managed to make duplicate rent agrement of where i lived then and some other documents and got me a personal loan of Rs 100000/-.However i told him to apply for 50K only.He took some post dated cheques As well,i told me that he will also take some money from me for doing all this.So Finally I got the Loan amount  and he took his share and i was surprised to see that the laon they gave me was 100000,however i applied for 50k,also out of the loan amount they deducted some amount for various services and processing fess,and after that bank guy took his share i guess i was left with 65000k.I paid for few months and later on quit that job and left that city and moved to my Home town.I COMPLETLY UNDERSTAND THAT I AM AT FAULT AND I SHOULD HAVE NOT AGREED TO THAT BANK GUY FOR SUCH A LOAN AND THAT TOO WITHOUT DOCUMENTS.And i do agree that at that time i was not sure if i would repay or not.
Now there are two points i need your advice on.
My uncle who lives on that hometown adress that is mentioned for the loan purpose,kept geeting calls on his Landline and at time few guys also came there,but as i donot live there they cound never contact me and time agin my Uncle told them that i do not live there.
Now My uncle recetly got a LEGAL NOTICE asking me to Repay aroound 3 lac 80 K i guess this includes all the intrest and penalties.
Question NO 1. What does this Legal Notice Means to me and what can bank do to me if i donot respond as i personally donot live there or they have nwver contacted me.But that house is my Uncles.Can they book me under any section or can they send police or warranty,even if it is a personal Loan with no Gaurntor ore collateral.
Question No.2.I would like to repay them but a nominal amount and considering that bank guy tempted me for loan that i never wanted and he took his share that can be proved by the cheque he took from me and debited that amount from my account.Can i get a repayment option in EMI and that too of a nominal amount and not that intrest and penalty of so many Years ,I would like to pay them a setteelment amount of 70k and that too in 6 Installemts.Please do let me know who i should Contact and is it possible.Bank is ICICI Noida.


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