• Credit card payment defaulting and cibil score

I have well knowncredit card company collectors pursuing me for an amount of 6 lakhs payment compiled over the years and for not paying my minimum dues for last 3 months since March. 18th May is last date given on email. My actual expense may not even be more than 50k in last 3 years and I have already paid the company 4.5 lakhs as charges and I am an Imperia Customer with other family bank and demat accounts. 

I do not wish to default but I can not pay this amount right away. I also not too keen to have a “settled” in front of my CIBIL score and they are offering me a high negotiated amount 5.10 L .
I need to know the following?

1. Is it possible to decide on a closing amount like a settlement amount and pay in instalments without getting charged the interest further?

2. How long can the credit card collectors pursue me? When do they inform to the CIBIL about the score?

3. Who can help me in reducing the interest rate that they charge on my card? The agency told me that it is system generated so nothing can be done? Do you think writing to the chairman/ MD of the company asking him to waive off my charges a good idea?

4. Will there be a collection account on try CIBIL report already seen in the present status? Will be score be already affected?

4. By when will they send me a legal notice and how long do such cases take in the court and will the amount be much lower? Do they put you in Jail or do publicity of your defaulting in the newspaper ?

5. What is the process of further negotiations. If I am going for settlement what should be the best amount I need to close this matter on?

Any suggestions would be helpful and thanked!
Asked 4 years ago in Criminal Law
Religion: Hindu

2 answers received in 1 hour.

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6 Answers

1) you can settle for x amount to be paid in instalments

2) there would be clause that in event of default full amount with interest would be payable

3) on being intimated of settlement they would stop pursuing you

4) approach bank manager for full and final settlement

5) no need to write to MD and chairman

6) you woukd not go to jail

7) if you fail to pay summary suit would be filed by bank to recover outstanding dues

Ajay Sethi
Advocate, Mumbai
87938 Answers
6207 Consultations

5.0 on 5.0

1) If you had actually used that much of amount than you have to pay it the credit card payment. Otherwise its only Interest calculated by the credit card company than not in use.

2) Try to coordinate with credit card officer and settle the amount at one level and give them installment dates post.

3) Regarding calculating CIBIL records are calculated on quarterly basis.

4) You can contact concern branch manager or central manger of city who looks after the liability payments.

5) They will send notice by 3 months warning and you may get custody for non payment.

6) You can settle with the expense amount and ask them to clear interest which they had charged compound interest.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

As soon as you are departing the payment of credit card it is reported to your CIBIL. You may discuss with the card company regarding your issues and different payment schedule which they may agree forgetting the payment and close the matter you may also approach to the bank directly and get him to discussion for the actual amount would bpay to close down the entire outstanding normally this is the amount which is less than actual amount and charged less interest and no levies and penalties

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Firslty, it is somewhere seems in your case that they have charged a much more money as if you were not paying then they would have initiated the legal action much time ago.

Secondly, yes you may be refer for a mediation on the settlement deed as to give in instalments though they may not get agree for this.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

1. The interest and penalty are waived in most cases if the party comes forward for a settlement

2. You need to talk to the credit card company informing about your intention to clear their principal dues and for waiver of interest and penalty

3. the company should offer a OTS (one time settlement) and close the account

4. if you given them an offer of OTS, company will obviously consider because it would not want to incur more expenses towards court

5. As a OTS you can offer to pay the principal amount in one shot to have the account closed once and for all

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

1. The credit card company may agree for this arrangement orally or even by writing but when it comes to practical situation, they will put blames on the computerized system of recovery and even may assure to rectify the same as per the originally agreed conditions, however despite your best efforts they will remain lethargic and may not oblige till you approach a consumer forum for this.

Therefore you may ask them to proceed legally through court of law for recovery, where you can challenge the case on merits and can seek time for settlement in installments.

2. The credit card company will notify the CIBIL the details of all their outstanding debts immediately in the periodical returns they submit to them.

There is no time limit for that.

At the same time the collection agents would be pursuing the collection program simultaneously.

3. You have to approach the manager of the credit card company directly and negotiate all suich issues.

The collections agents are helpless in this regard.

4. You can verify the same from CIBIL website.

5. You will come to know when they issue a legal notice, but generally they will try to threaten you through the collection agents itself, if you appear not to be afraid then they may initiate further legal action

6. You are the better judge of your situation, so you chalk out a plan to confront the situation accordingly.

T Kalaiselvan
Advocate, Vellore
78095 Answers
1543 Consultations

5.0 on 5.0

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