1) banks will file summary suit to recover outstanding dues with 39 per cent interest
2) in addition she may be harassed by recovery agents for recovery of dues
Credit card
I have been paying for my sister's credit cards. She is retired and lives overseas. I'm thinking about stop making payments. If the debts are sent to collectors, what can they do. Thank you
Asked 6 years ago in Business Law
18 Answers
Since my sister is retired, her credit score is not an issue to her. If we ignore the creditors, what can they do since my sister is overseas.
Asked 6 years ago
They may take legal proceedings to recover the dues
2) after obtaining decree they can seek to attach her bank accounts, property standing in her name
1. if she has no property (movable/immovable) then you can stop making payments, else, the property may attach by the Court order after decree of recovery suit
Bank can initiate proceedings to recover the dues and on obtaining decree they can go for attachment.
Further, there will be harassment by the recovery personnel "round the clock"
Preferably get the balance settled by seeking OTS option.
1. Since you are not legally liable t pay debt of your sisters, in case of default of such payments the creditor in no way can seek legal or extra judicial means to collect the same from you.
2. I repeat the present location of your sister is of no concern to you in case of her default to pay off credit card bill.
Credit card outstanding are termed as personal loan and this is the responsibility of the holder of the card to clear the outstanding as you are paying the credit card bills every month of your retired sister and she is living Overseas now the banks have agreement with other banking companies to track down people those who are in difficult and increase this card is issued by the India and Bank approaches the quotes for legal action then she might get difficulty in entering the country it is always good to clear outstanding to avoid any legal hassle civilCIBIL scores are always not material but the personal comfort is more in case of default the the recovery agents will be tracking down to your sister as well as the person who is making the payment in previous transactions so it is up to you that what do you want you need to leave the comfortable life or you want hassle in your life
See debt collectors cannot use force to collect bills of credit card bank can initiate suit before court to recover the amount.
See they can file suit before court and they can obtain decree against your sister. In case of execution of such decree they can attach property or account of your sister in India.
1. Credit Card co. can file a Civil case for recovery and Police FIR, requesting investigation and charge-sheet, for offences like Cheating, Intimidation, Fraud, Breach of Trust, Mischief etc.... against the person, supported with all relevant supporting Documents & Witnesses.
2. The above can also be enforced thru the overseas Indian consulate.
The card holder is responsible for repayment of the credit card loan.
If the intimation is sent by the credit card company to the credit card holder, then he or she is liable to repay the same as per the terms and conditions.
They may try to recover the loan amount from her if she is available in India, if she is not available in the given address then they may take legal action and wait for her to return or wait unable to take any further action for recovery.
You are not liable to pay your sister's credit card bills. If you stop making payments to her Bank, the bank would initiate recovery proceedings against her.
Her properties in India would be attached if she fails to repay the decreetal amount awarded by the court, but under no circumstances you can be made to pay her debt by the court.
If you ignore the creditors the bank code assign this matter to the recovery agents who are going to call up the contact numbers available with them and ask them to settle the matter with the Bank's it has been held in various judgement that the bank can only initiate recovery proceedings and other legal remedies in case of default by the customer but the same is not followed. If no settlement is arrived at, bank will initiate recovery suit against her to recover the amount due , with high interest.
She is out of reach of creditors and you are not responsible for her debts. Nothing will happen.
She could be sued in civil court and have a lien placed on your bank account.
Bank may attach those assets as lien to recover its dues. Some banks could also file criminal charges on you under section 406/420 cheating of IPC.
1. They can file suit for recovery against your sister can get attachment order of her properties in India.
2. She can also be arrested when she return to India.
The creditors can file case against sister you don't have to worry
