I was holding an AXIS bank credit card from 09-01-2008. Due to some financial constraints I was unable to Pay the total outstanding which got accumulated. The BANK offered me option of settlement of Rs 22800 /- against Total outstanding of Rs 57166.5 /-. I paid the settlement amount of 22800 in cash as per settlement letter copy on 30-10-2012.
As per settlement letter which I have the bank has stated it will update status as settled. below are exact wordings from the letter.
"For your information and understanding, we wish to advise you that as per the current procedure of Credit Bureaus, if a matter is settled by paying an amount which is less than the actual outstanding amount on a certain date, the Credit Bureau records will reflect the status as "settled" and the Credit Bureaus do not do not delete the records in such cases. This is the standard procedure. Accordingly, your records in Credit Bureaus also reflect as "settled" as per normal procedure. "
The bank updated the payment but didn't update status to settled and they never again called/contacted me after this.
But When I checked my CREDIT Bureau Report it's showing Default Status as Written-OFF instead of SETTLED. I contacted the BANK multiple times for clearance / pending balance they initially informed as zero pending dues.
When I sent them that status is showing as WRITTEN-OFF they informed me via mail reply that I will need to pay Rs 217937.32/- i.e. all the amount along with the interest calculated till date to get clear CIBIL report. which is as per below.
Opening O/s Debit / Reversal Credit Interest Closing O/s
10-Oct-12 93710.91 0.00 0.00 2764.47 96475.39
10-Nov-15 211692.39 0.00 0.00 6244.93 217937.32
Here the total Outstanding amount (O/s) is not matching and is more than Total outstanding amount which was shown on the settlement letter dated 29 OCT 2012. When I asked for all the statements the Bank has not provided me. They have giving the calculation over mail.
Here in case I feel that BANK has already cheated me by not updating correct status in CREDIT Bureau (CIBIL) for last 3 years. Though I am willing to pay the remaining Rs 34366/- of the total outstanding but the Bank is demanding for more amount.
I am not sure how do I close this case as I don't have any confidence on BANK also the amount which they are asking is too high after already doing a settlement 3 years Back. I am getting a feeling that BANK has done a cheating and has put the default CIBIL status to Blackmail me. While the settlement amount was taken only as Ransom amount so that Bank and Recovery agents donot trouble me.
I have the settlement letter soft copy along with all the mails follow ups which I had being doing for last 6-7 months.Let me know what can be done in this case.
Asked in Civil Law from Pune, Maharashtra
1) issue legal notice to bank for having failed to honour its commitments of showing account as settled
2) also complain to bank ombudsman
3) if no action taken file complaint before consumer forum against bank for unfair trade practice
1) Ideally since you settled the outstanding amount by paying an amount that the bank asked you to pay the status should have been updated as 'settled' and not written off. The status is written off if it's a bad debt that the debtor never paid despite attempts by the bank to recover it.
2) Of course the status settled is not equal to a clean status on CIBIL, however it is far better than written off.
3) In either case whether the case is settled or written off, there shall not be any further increase in the total amount outstanding. Clearly there has been negligence on the part of the bank in updating status after you made the payment and it is trying to protect itself.
4) Send a legal notice to the bank demanding the status to be updated as per the settlement agreement when you made the payment.
As per your question you had default of payment of credit card ,The BANK offered you option of settlement of Rs 22800 /- against Total outstanding of Rs 57166.5 /-. and you paid the settlement amount of 22800 in cash as per settlement letter copy on 30-10-2012.
First you have to give a Legal Notice to the Axis Bank if they have not reply your notice , you can file a case against the Bank in Consumer Forum contact your near by Lawyer to Issue a Legal Notice to Bank
You should issue a lawyer's notice to bank to seek the change of status to 'settled'. If bank does not oblige you then a lawsuit can be filed against it to seek court's directions to the bank to change the status in the light of the settlement that has been arrived at.
Instead of repeatedly asking for clarification from the bank about the status or outstanding amount etc., you can issue a legal notice to the bank stating the facts that you have already settled the negotiated amount and the copy of settlement letter dated 30.10.2012 is an evidence to it and also you may state their quote that "it will reflect the status as "settled" in the CIBIL where as hey reported wrongly to CIBIL as 'Written off' is nothing but an act of cheating or breach of faith, therefore it is instructed to change the status with CIBIL to settled by amending the written off status immediately or else you may drag them to consumer forum for the deficient service as well as for mental agony and for the compensatory costs towards it.