LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More


 6 Replies

Raghav Arora   26 June 2018

Hi! Thanks for bringing us the question!

Firstly, if that is your concern, in India, if you do not pay your credit card bills, you cannot be jailed (In most of the cases atleast). It is a civil debt and thus civil case can be made on you which is the last resort with the bank. Except that - 

Any outstanding credit card dues in India will show up in your CIBIL report and your CIBIL score would be adversely affected.

Also, the dues against your credit card will keep on increasing with the interest compounding playing its part.The figure may get very large with time without you getting the breeze of it.

So what is CIBIL score and why is it important? In India, a CIBIL score is like a rating associated with creditworthiness of a PAN number.and you can have only one PAN. So any bank or financial institution can track your credit rating before giving you a loan and definitely deny if you have outstanding dues on your credit card.

For employment purposes as well, you will provide your PAN number and at least in India, all banks will have a look at your CIBIL report.

If you are an existing bank employee, then you must consent for the bank to access your CIBIL report.

Finally, the bank on whose credit card you have defaulted can take legal action against you for recovery of the dues. This might involve court cases and seizing your other assets ( movable and immovable).

Having a bad CIBIL score may even affect the eligibility of your children's to get education loans too.

So the advise would be to call the bank, tell them that due to some untamable circumstances you could not pay and need time and also request for your late fee to be waived if possible ( They are usually cooperative if you have a genuine reason ) try to negotiate a settlement amount and pay it as soon as possible to save yourself the possible harassments in future.

I hope this helps! Regards!


1 Like

G.L.N. Prasad (Retired employee.)     26 June 2018

The final step by the FI is they will sell away these chronic default accounts at a discount, when all hopes for recovery evaporates.

The purchasing agency is equipped with muscle men, who regularly follow up your and your family members to harass and do not hesitate to use all physical and mental forces to make you pay with interest.  (Don't ask me whether it is permissable by RBI / law  or not, as they are not covered under RBI )

You can never raise single rupee from any FI in future if your CIBIL score is poor.

1 Like

Kumar Doab (FIN)     26 June 2018

The lender/CC company may proceed for recovery............

Settlement with CC company is adverse entry.

The settlemnent from Lok Adalat may be possible.. 

However prefer to discuss with a very able senior LOCAL counsel of unshakable repute and integrity specializing in consumer  matters  and well versed with latest citations, LOCAL applicable rules/laws/ … and having successful track record…. and worth his/her salt….so that there is NO adverse effect on credibility..


Dr J C Vashista (Advocate)     27 June 2018

If you have taken a loan you must repay as per agreed terms and conditions. Otherwise face the consequencies.

No advise to get illegal acts to legalise.


SHIRISH PAWAR, 7738990900 (Advocate)     10 July 2018

If you dont pay the loan bank will report the same in cibil and bank will initiate recovery proceedings against you. 

Sudhir Kumar, Advocate (Advocate)     19 August 2018

what are facts of case.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Threads