Dear Credit Card Holder,
Normally you have understand the process of Credit Card Charges. Once you default in payment, the Credit Card Issuer levies service charges and late payment surcharges which goes on increasing and here it’s not your fault. Further, the bank does not call you. It’s the collection agency which calls you on the bank’s behalf.
1. You do not have to pay the Service Charges or Late Payment Surcharges. Ask them to waive them off and which is entirely possible in a settlement case and be rest assured that as per Supreme Court Orders, they cannot do anything.
2. However, they will start hurting your ego and self respect by barking like stray dogs like give threats to bash you up or make statements which will pinch you the most or even use abusive languages. Be careful to record the conversations just in case and do remember to ask the name of the person you are speaking to. Remember please that you pay them whatever you have spent not any late payment surcharges or service fees.
3. Their threat that they will decrease your credit rating is only a threat. If you settle and pay your outstanding amount (the amount that you had spent only), they cannot do anything as they will be issuing you a letter of settlement.
4. What they will do is that after you settle the amount, the bank might wilfully put your name in the defaulter’s list at CIBIL. All you have to do is to go with the settlement letter to CIBIL and remove your name from the defaulter’s list.
5. Credit Card Issuers cannot do anything as per Supreme Court Orders. All they will do is to hurt your ego and self respect and try to get their demand from you.
6. They cannot do anything and they have to agree to your terms and conditions. Be Strong. Collection Agencies have no right to do anything.
7. Further, banks that give loans (personal loan, house loan, car loan and other loans) check the CIBIL score and see that if you have nothing pending or are not a defaulter as far as loans are concerned, they will issue you the loan. They are not bothered if you defaulted a credit card of some bank as they themselves know that heavy charges are levied which are impossible to pay.
I will give you a case in point. My wife had a HDFC bank card and had purchased a mobile phone to the tune of Rs. 10,000/- only some 5 years back. After that she lost the card or was probably lost when her vanity bag was stolen. After 5 years, the collection agency of HDFC started troubling my wife calling her names and trying to hurt her self respect and used abusive languages to which I recorded and complained in the police. When the matter came to the knowledge of HDFC, they called me and tried to settle at 28,000 INR to which I sternly replied that either the person goes to jail or my wife’s credit gets waived and name removed from the defaulter’s list. They further bargained that they will only charge what we had transacted to which I sternly replied that I will pay Rs. 10,000/- only if the person who abused my wife goes to jail and I am shown the arrest warrant and the chargesheet. Till today for the past 6 months I have not heard from the collection agency nor from the Bank.
Hope the above helps.