Arbitration for Credit Card recovery
2 years ago
If a Bank decides to opt for Arbitration to reclaim Credit Card dues which have gone NPA, does the arbitration tribunal or arbitrator need to consider only if there is dispute on the amount due or do they need to consider any of the following?
1 - The Capacity of the debtor to pay back?
2 - If the Debtor has always been ready to pay back but has requested time because of no Income or no Job?
3 - All previous communication between the Credit Card holder and the bank showing the requests made and solutions offered which have been previously ignored by the bank?
My point is, a Credit Card debtor is not disputing that he/she owes the bank but has been requesting for time because currently he/she is in no capacity to make any payment. When he/she had diminished capacity before covid, he/she was in touch with bank through emails as well as physical visits to their office multiple times to work out a payment schedule within his/her diminished capacity but the same was rejected by bank each time who only wanted to offer a lump sump settlement or plan beyond his/her capacity. Plus he/she has records of his/her communications during this period with the bank.
So can the arbitrator or AT even order for the amount to be paid within a stipulated time frame in such cases if the debtor givens proof that he/she can't make the payment in the said time frame in current capacity as they don't have any income or assets to sell?
The arbitration tribunal will allow you to present your case and put forward all that you want to say and communicate. They will hear all your pleas and then only they will decide on the award. But in all possibility they will not let you not pay the amount. They will make an award that you are to pay that amount. How to pay will be left open to you.