Credit card settlement
3 years ago
Since 2014 till date, I have paid much more than what I used card for. Since 2013, I am jobless and working on small businesses which also stopped since Nov-2019. I can't pay bank credit amount which is because of bank late fees and many additional charges apart from irregular interest charges. Bank people are demanding high amount even after I convey my financial situation. What should I do?
A.Dear Sir,
ICCI Bank Limited vs. Prakash Kaur case,
The Supreme Court in a landmark judgement reiterated its earlier stand that banks cannot deploy musclemen for recovery of loans from defaulters thus forcing them to end their lives.
"We deem it appropriate to remind the banks and other financial institutions that we live in a civilised country and are governed by the rule of law," a bench comprising Justices Tarun Chatterjee and Dalveer Bhandari said.
The court while dismissing the ICICI Bank's plea refused to delete the Delhi High Court's remarks that held the bank and its musclemen responsible for abetting a youth to commit suicide by humiliating him and taking away his motorcycle financed by the largest private sector bank.
It also asked the ICICI Bank to to pay Rs 25,000 as cost of this litigation to the respondents within three weeks and directed the Delhi Police to conclude the investigation against the bank expeditiously within three months, keeping in view the gravity of the allegations.
The court also directed the concerned Deputy Commissioner of Police to submit the investigation report in the Delhi High Court.
According to the court, complaints received by Reserve Bank regarding violation of the above guidelines and adoption of abusive practices followed by banks recovery agents would be viewed seriously.
Reiterating the RBI Guidelines on Engagement of Recovery Agents, the court said, "The Reserve Bank may consider imposing a ban on a bank from engaging recovery agents in a particular area, either jurisdictional or functional, for a limited period. In case of persistent breach of above guidelines, Reserve Bank may consider extending the period of ban or the area of ban."
"RBI had expressed its concern about the number of litigations filed against the banks in the recent past for engaging recovery agents who have purportedly violated the law," Justice Bhandari, writing the verdict for the bench, stated.
RBI in a letter accompanying its April 24, 2008 Guidelines had stated that it might consider imposing a ban on a bank from engaging recovery agents in a particular area, either jurisdictional or functional, for a limited period.
ICICI Bank had moved the apex court seeking deletion of some paragraphs in the High Court order which had said that "...the proximate cause of death of the deceased that led him to commit suicide was on account of humiliation caused by the Bank people from where loan was taken by him."
"The modus-operandi employed by the banks like ICICI for realisation of their loan amount and for recovering the possession of the vehicle against which loans are given is extra legal and by no stretch of imagination they can be permitted to employ musclemen and goons for recovery of their dues even from a defaulting party," the High Court had observed.
The High Court order had come on a petition filed by Shanti Devi Sharma, the deceased's mother, seeking a probe against the ICICI bank and its staff for the unlawful action, which led to the suicide of her 34-year old son Himanshu Dev Sharma.
Sharma had committed suicide in October 2005 by hanging himself at his house after he was allegedly intimidated and humiliated in front of his neighbours and family by recovery agents employed by the bank for recovering the loan amount taken for his motorcycle.
The ICICI Bank had contended that it was within its rights to recover loans and had followed the required procedure for recovering dues.
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ICCI Bank Limited vs. Prakash Kaur case,
The Supreme Court in a landmark judgement reiterated its earlier stand that banks cannot deploy musclemen for recovery of loans from defaulters thus forcing them to end their lives.
"We deem it appropriate to remind the banks and other financial institutions that we live in a civilised country and are governed by the rule of law," a bench comprising Justices Tarun Chatterjee and Dalveer Bhandari said.
The court while dismissing the ICICI Bank's plea refused to delete the Delhi High Court's remarks that held the bank and its musclemen responsible for abetting a youth to commit suicide by humiliating him and taking away his motorcycle financed by the largest private sector bank.
It also asked the ICICI Bank to to pay Rs 25,000 as cost of this litigation to the respondents within three weeks and directed the Delhi Police to conclude the investigation against the bank expeditiously within three months, keeping in view the gravity of the allegations.
The court also directed the concerned Deputy Commissioner of Police to submit the investigation report in the Delhi High Court.
According to the court, complaints received by Reserve Bank regarding violation of the above guidelines and adoption of abusive practices followed by banks recovery agents would be viewed seriously.
Reiterating the RBI Guidelines on Engagement of Recovery Agents, the court said, "The Reserve Bank may consider imposing a ban on a bank from engaging recovery agents in a particular area, either jurisdictional or functional, for a limited period. In case of persistent breach of above guidelines, Reserve Bank may consider extending the period of ban or the area of ban."
"RBI had expressed its concern about the number of litigations filed against the banks in the recent past for engaging recovery agents who have purportedly violated the law," Justice Bhandari, writing the verdict for the bench, stated.
RBI in a letter accompanying its April 24, 2008 Guidelines had stated that it might consider imposing a ban on a bank from engaging recovery agents in a particular area, either jurisdictional or functional, for a limited period.
ICICI Bank had moved the apex court seeking deletion of some paragraphs in the High Court order which had said that "...the proximate cause of death of the deceased that led him to commit suicide was on account of humiliation caused by the Bank people from where loan was taken by him."
"The modus-operandi employed by the banks like ICICI for realisation of their loan amount and for recovering the possession of the vehicle against which loans are given is extra legal and by no stretch of imagination they can be permitted to employ musclemen and goons for recovery of their dues even from a defaulting party," the High Court had observed.
The High Court order had come on a petition filed by Shanti Devi Sharma, the deceased's mother, seeking a probe against the ICICI bank and its staff for the unlawful action, which led to the suicide of her 34-year old son Himanshu Dev Sharma.
Sharma had committed suicide in October 2005 by hanging himself at his house after he was allegedly intimidated and humiliated in front of his neighbours and family by recovery agents employed by the bank for recovering the loan amount taken for his motorcycle.
The ICICI Bank had contended that it was within its rights to recover loans and had followed the required procedure for recovering dues.
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A.Hi Sir/Ma'am.
Firstly visit your bank and talk to the branch manager regarding your debts. once your credit dues left to be paid are known, you can prioritize as to which needs to be paid first. once you clear the debts of highest interest, you can switch to the bills which has the least pending balance.
you can take loan to pay off credit card debts or convert the outstanding bills to EMIs.
if things are still not fulfilled by the bank, feel free to contact a trustworthy lawyer.
Hope this helps.
Thank you
Firstly visit your bank and talk to the branch manager regarding your debts. once your credit dues left to be paid are known, you can prioritize as to which needs to be paid first. once you clear the debts of highest interest, you can switch to the bills which has the least pending balance.
you can take loan to pay off credit card debts or convert the outstanding bills to EMIs.
if things are still not fulfilled by the bank, feel free to contact a trustworthy lawyer.
Hope this helps.
Thank you
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Helpful
Share
Ayantika Mondal @ Prime Legal
Responded 3 years ago
A.Hi Sir/Ma'am.
it is advisable for you to visit your bank and talk to the branch manager first regarding your debts. once your credit dues left to be paid are known, you can prioritize as to which needs to be paid first. once you clear the debts of highest interest, you can switch to the bills which has the least pending balance.
you can take loan to pay off credit card debts or convert the outstanding bills to EMIs.
if things are still not fulfilled by the bank, feel free to contact a trustworthy lawyer.
Hope this helps.
Thank you
it is advisable for you to visit your bank and talk to the branch manager first regarding your debts. once your credit dues left to be paid are known, you can prioritize as to which needs to be paid first. once you clear the debts of highest interest, you can switch to the bills which has the least pending balance.
you can take loan to pay off credit card debts or convert the outstanding bills to EMIs.
if things are still not fulfilled by the bank, feel free to contact a trustworthy lawyer.
Hope this helps.
Thank you
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Helpful
Share
Ankur Goel @ Complete Law Shield
Responded 3 years ago
A.relax.
how much was the amount spent ?
how much you paid ?
how much remaining ?
first of all, close the card and ask them to stop putting new charges. convert balance into emi.
if you paid more than what you spent then actually you dont have to pay more as you can not pay anymore and if handle properly. but you need a lawyer to handle it.
Hope this clarifies,
Advocate Ankur Goel
(Complete Law Shield) #YourLifeYourChoice
Note - This is just a small advice. Proper advice can happen only after going through details.
how much was the amount spent ?
how much you paid ?
how much remaining ?
first of all, close the card and ask them to stop putting new charges. convert balance into emi.
if you paid more than what you spent then actually you dont have to pay more as you can not pay anymore and if handle properly. but you need a lawyer to handle it.
Hope this clarifies,
Advocate Ankur Goel
(Complete Law Shield) #YourLifeYourChoice
Note - This is just a small advice. Proper advice can happen only after going through details.
Helpful
Helpful
Share
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