• Credit card default

Hi I have a borther who has taken 2 credit cards one from SBI and second from Citibank and have defaulted payments on both. Last week we as family (my sister, mother and myself) were contacted by SBI asking to clear his dues by paying the principle amount and waiving the interest amount as a last resort settlement. If we fail they will proceed with legal action on the home address provided at the time of processing the credit card. I have gone ahead and cleared this principle amount due to SBI and asked them to close the issue. But I am afraid Citibank credit due is a huge amount and anticipate this coming on to us. My brother is refusing to pay and has asked to ignore them but I don't think it is the right way to go ahead. please let me know in such a case how can we protect ourselves from the bank authorities and take legal action against my brother because this will continue to major liabilities in the future. appreciate your quick feedback on this.
Asked 1 year ago in Civil Law from Kuwait
1) when was last payment made by your brother to Citibank ? 

2) had 3 years passed since last payment made claim of bank would be barred by limitation ?

3) you are not liable to pay your brother dues 

4) let bank proceed legally against your brother 
Ajay Sethi
Advocate, Mumbai
23364 Answers
1222 Consultations
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Hi, repayment is the only options when your brother taken the money form the bank your brother has to settle the amount.

2. Your family either settle the amount you have no other options and you can't stop the bank to take legal actions.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
1. You should have taken legal advise before contacting the Bank and making payment,

2. The Bank's claim is restricted on your brother only and not on yourselves,

3. You are unnecessarily worrying yourself by thinking that the liability of repayment will be burdened on you,

4. Please note that since your house has not been mortgaged, the Bank can not take any legal action on you or attach your house,

5. Let the Bank take legal action on your brother, if he is not interested to repay the said loan,

6. However, if he makes any one time settlement, he should collect a letter signed by the Branch Manager in his presence stating that there will be no more dues from him if he pays the settled amount.
Krishna Kishore Ganguly
Advocate, Kolkata
12134 Answers
233 Consultations
5.0 on 5.0
1. Your brother can be proceeded against by the bank for recovery of the money. Criminal charges can also be filed against him. The banks chase their borrowers to the end.

2. None of the family members of your brother is liable to repay the amount. The bank can proceed only against him and none else in his family as it is a personal debt which your brother has to discharge. It is in his interest to pay the amount, failing which the commencement of legal proceedings by the bank is imminent. 
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
5.0 on 5.0
The person who has taken loan will be required to repay and not others  who may be even his close relatives. 
The bank has no rights to ask  the defaulter's close relatives to repay the same, it can ask the guarantor and initiate action on them but not against the brothers/sisters/father/mother of the defaulter. 
T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
5.0 on 5.0

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