• Credit Card Issues

Good morning everyone, as no other option is helping me to get out of the financial problems which i am suffering for last few years i decided to get some legal advice. i have estimated for my total liabilities towards different banks credit cards (5 bank's) which is around 6,55,000 inr, minimum due comes as around 30,000 and monthly interest around 25,000. So in that way it is almost impossible to payout this amount. I asked every credit card bank to convert the outstanding to a personal loan, but they refused. For past one year I am paying the minimum due amount only. My CIBIL is 550 because of a housing loan EMI's not paid, builder issues, already filed a case in RERA.
Please advise how can I reduce the monthly burden and huge interest per month. I just want to convert the outstanding to personal loan EMI of around 30,000 per month.
Asked 5 months ago in Civil Law

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18 Answers

Dear sir,

It is unfortunate that you are facing such situation. I would advise you to go to any nationalise bank and mortgage your loan and pay back the credit card outstanding because credit card have high interest rate then interest on gold loan approx (9 -12%.) Once you set off the credit card debt it is easy to set off gold loan and as gold prices are rising you will get very good mortgage amount. After one year you can pay the amount and release the gold.

I hope this finds you useful. Kindly reply me for any clarifications.

Regards,

Adv. Divyam Sheth

 

Divyam Jay Sheth
Advocate, Mumbai
4 Answers

Not rated

See it is totally decision of the credit card bank company as you cannot force them to convert it into personal loan you can in written make a request if it is sanctioned they may convert otherwise you may apply for restructuring or settlement.

Shubham Jhajharia
Advocate, Ahmedabad
25202 Answers
105 Consultations

5.0 on 5.0

Take loan fromyour parents 

 

2) repay credit card dues 

 

3) in alternative apply for personal loan and with loan amount repay credit card dues 

 

4) credit card interest amounts to 42 per cent per annum . Repay card dues 

 

5) bank will not convert credit card dues to personal loan 

Ajay Sethi
Advocate, Mumbai
76975 Answers
4621 Consultations

5.0 on 5.0

Bank ombudsman would not grant you any reliefs

 

you can only borrow from friends and relatives and repay card dues 

Ajay Sethi
Advocate, Mumbai
76975 Answers
4621 Consultations

5.0 on 5.0

You can contact the branch manager of the concern bank and ask them about some solution. Nevertheless you will have to pay the amount whatever the case may be.

Divyam Jay Sheth
Advocate, Mumbai
4 Answers

Not rated

Hi

You can reach out to the banking ombudsman stating your problem and settle the monthly minimum payment to a lower amount.

It cannot be achieved legally,  only the request can work out here.

They can also help only if there is some provision rested with the banks regarding this type of situation. 

Thanks 

Rahul Jatain
Advocate, Rohtak
4042 Answers
4 Consultations

4.9 on 5.0

- As per the RBI , the  bank should give proper time and offers for the settlement of loan amount.,  on the ground of health and sudden financial loss 

- If , the bank is not agree to give time, then don’t worry and let them to start legal action against you.

- Firstly, the bank will issue demand notice prior to take legal action from the court. You should reply the same after narrating the whole story of business failure etc as per your situation.

- Even, if the bank filed a case before the Court, you will have much time to repay the said loan amount and to settle the matter according your present situation.

- If bank official/people are harassing, then you can do the following for your safeguard.

  1. You should lodged complaint at the police station for harassing & threatening , as law not permits anybody to take the law in his hand. If police refuse, then you can approach the magistrate for the same.
  2. You can file an injunction case against the bank and its recovery agents for the direction of not visiting the house or office for the recovery of dues amount of loan.
  3. You can file a complaint with the RBI .

Don’t worry, In this way , the bank will itself try to settle the dispute with you. 

- Presently , if you will approach banking ombudsman , then they will not cooperate you . Do the needful as mentioned above.

 

Good luck and dont forget to rating Positively. 

Mohammed Shahzad
Advocate, Delhi
4178 Answers
43 Consultations

5.0 on 5.0

Stop paying minimum EMI. On 3 three consecutive bounce accout will become NPA. NO INTEREST will levy than. Can do one time settlement later. Will get enough time.

Paying 25k interest is waste.

 

Yogendra Singh Rajawat
Advocate, Jaipur
20144 Answers
28 Consultations

4.5 on 5.0

For your credit card payment you may request the bank to reschedule your balance amount in easy installments.

Mohammed Mujeeb
Advocate, Hyderabad
17332 Answers
11 Consultations

4.5 on 5.0

Through ombudsman you cannot get any relief. 

Mohammed Mujeeb
Advocate, Hyderabad
17332 Answers
11 Consultations

4.5 on 5.0

See there is no legal provision as such to settle these loans you have to mutually settle same with the bank only.

Shubham Jhajharia
Advocate, Ahmedabad
25202 Answers
105 Consultations

5.0 on 5.0

Being personal loan  the same will be converted as credit card is insecured debt. You can first seek a personal loan of the whole amount and pay of the credit card bill and then you can pay the personal loan in emi. The question is whether any bank is ready to advance you the personal loan for the same

Prashant Nayak
Advocate, Mumbai
20589 Answers
38 Consultations

4.4 on 5.0

 You should take loan from some friend or family and clear the dues of credit cards and the cut the cards in Half after blocking them. This is the only way to come out of quick sand of credit cards. 

Mohit Kapoor
Advocate, Rohtak
9322 Answers
3 Consultations

5.0 on 5.0

Credit Card payments cannot be converted to PL by Bank.

Banking Ombdsman do not have any provision as required by you.

Best possible option for you is to raise loan / hand loan from your near and dear family members (multiples of 50,000/- so that the lender cannot also feel the pinch) repay the loans to the bank.

If you start paying only minimum amount due, the banks charge compound interest on the amounts due it will be upwards to 36% pa.

Unnecessarily you will be paying only interest component than principal.  By borrowing in aforesaid manner, you clear off the principal of bank which is the least, and also you can request them to wave off interest since you are closing the payment at once.

S Srinivasa Prasad
Advocate, Hyderabad
2500 Answers
8 Consultations

5.0 on 5.0

First, try contacting your card issuer and asking to have the annual fee waived. Sometimes, this request is granted, while other times customers are presented with retention offers in the form of additional points or miles. Another option is to have your account transitioned to a similar credit card with no annual fee, although it will feature less generous rewards and benefits. Finally, you can always cancel your card and receive a credit for the annual fee shortly after its billed.

One of the biggest problems that credit card users can face is incurring too much debt relative to their available credit. To get out of this situation, start by taking a break from your cards and use other forms of payment as much as possible. 

One always has the choice to get a new credit card and transfer the outstanding amount to that new card at a competitive rate. One can also do that on existing credit cards, provided you have credit balance available on that card. A balance transfer can be an effective way to reduce your debt and get better interest rates.

do not keep too many credit cards. Credit cards are a form of unsecured debt and having too many makes your credit profile riskier. For your personal or business use, keep your credit cards to what is necessary. A Credit card is also easy money and before you know, spending too much on too many credit cards may push you into deep debt.

You may have an audience with the CC manager and explain your current financial situation and offer your proposal to ease the situation, let them suggest what best can be done on this.

T Kalaiselvan
Advocate, Vellore
66984 Answers
884 Consultations

5.0 on 5.0

If you have exhausted all the remedies then you have no option than to allow the creditors to initiate suitable action against you through court of law.

The course of legal action will give you breathing time to decide about repayment and sources for it. 

T Kalaiselvan
Advocate, Vellore
66984 Answers
884 Consultations

5.0 on 5.0

You should write a letter to the banking ombudsman for converting it into a loan.

Rahul Mishra
Advocate, Lucknow
9795 Answers
18 Consultations

5.0 on 5.0

Also you may file a writ petition in the high court and pray for a restructuring of the loan and a payment plan.

Rahul Mishra
Advocate, Lucknow
9795 Answers
18 Consultations

5.0 on 5.0

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