Parvathi Pillai (Executive Secretary) 24 May 2014

Default of credit card payment

I have a friend who has credit card payments pending from 2010. Till 2010 he was making the payments timely. Now since the time he has stopped making the payments, the amount with interest has become some 3-4 lakhs. He is jobless and not in a position to make the payment anyhow. I would like to know from experts after how many years do the bank write off these amounts since he is even afraid to search for a job. Joining a job will require him to open a salary account and he is afraid that he will get traceable that way. Please help soon.

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G. Y. Sharma (Advocate) 24 May 2014

Dear Questioner,

Evasion of payment to Bank either on credit cards or on account of debt in respect of any loan transaction shall never be possible. Today's Banks are equipped with suitable infrastructure aided by Expert and experienced Advocates who in turn would advise the Bank to take legal steps. If your friend does not have any properties, he will be subjected to arrest and detention in civil prison in course of the Execution Proceedings of the Bank in the event of his failure to pay the amount even after preferring a suit by the Bank. Advice your friend to seek easy instalments to pay off the credit card amount through an application to the Bank concerned, lest the law will take its own recourse.

Hope this would satisfy you.

Truly Yours,

GY Sharma

Advocate