See if you fail to pay the bills the bank can file recovery suit to recover the dues and with order of court can attach your property or bank account to recover the amount after decree.
Credit Card
Hello sir. I used 4 credit cards of different banks of Rs.6Lacs since 3 years. In these 3 years I paid approximately Rs.20Lacs as interest, late payment fees, etc. but my credit card balances are as it is. Now I have lost my job & can not pay credit card dues. Please suggest me what can I do now & what legal action max to max can be taken by the credit card companies if I won't pay credit card bills. Please help me in this matter. My contact no. is [deleted]. Thanks & Regards, Akshay.
Asked 6 years ago in Civil Law
13 Answers
Summary suit would be filed by banks to recovery outstanding dues with interest
Firstly, they will try to negotiate with you, by offering concessions of interest or waiver of certain compound interest etc. to settle the dues.
If you do not respond to their offer or various notices and personal visits of its staff, then they would assign this job to some recovery agent.
After exhausting all the chances of a compromise settlement of credit card default dues, banks may be forced to go for filing a suit against the defaulter and other co-obligants or sureties, if any, for recover of dues.
Regards.
1. You don't have to do anything if you cannot pay.
2. The bank can file a suit for recovery of money in the civil court to recover the dues with cost of litigation. You can contest the suit as and when filed by bank. Nothing more can be done by the bank.
The credit card companies may sue you for the unpaid amount in a court of law.moreover your credit ratings will take a hit
Regards
you can file consumer complaint if even after paying the amount it is showing there. You don't have to yourself initiate if they file some case on you just contest it.
Dear Sir,
Logically bank can take no action if we talk about credit cards, yes if it was a personal loan where you provide post dated cheque there bank can take you to the court because they use to submit the cheque which will dishonor and if it happen twice then bank will file a complaint against you..in case of credit card they can merely call and can give you warning that they will file a case but legally it's not possible.
Dear Akshay
Amicably settlement is better with the Companies, otherwise, the amount will increase day to day(interest will levy on your outstanding)
Feel Free to Call
On 3 months continues default, it will declare NPA. No more interest chargeable . For long time recovery calls will come than if amount is huge , recovery suit will file that will take more years. This highest can be happen.
Simple situation, to contact the bank, close your credit card account, arrive at a settlement after having a reasonable discount such as no penalty amount, no surcharge, etc. Fix the installment, or promise to pay after such a reasonable period
the bank can file suit for recovery of outstanding dues against you and can get your property (movable and non-movable) attached to recover the dues.
They may recover the same as Land Revenue by attaching your properties or other assests or they may send you behind the bars.
The credit companies may send their recovery agents to your home and they may even assault you or insult you in front of all fairly members or even before the neighbors.
Though all such things are illegal but you may not be able to avoid them though you have an option to lodge a police complaint agaisnt them for such illegal acts.
They may file a money recovery suit through civil court if they do not have any cheque from you.
If they have any cheque then they may file a cheque bounce case also.
