Credit card settlement
5 months ago
Hi I have icici bank credit card and limit is 2.5L.During 2021-2023 I have paid 4.25L double of my credit used.All my minimum payment went into interest .I approach bank for settlement but they settled at 1,87,000 in 5 EMI which is still difficult for me to pay as my business in severely affected during coved and post covid huge debt piled up.What are procedure to settled credit card dues in less as mentally disturb by recovery agent keep visiting my premises humiliation calls really put me down .
A.Dear Client,
If you are harassed by the bank or the recovery agent, then you can resort to the police station and can file a complaint. You can file a civil injunction suit in court with interim relief against the bank and recover damages for harassment. Legal action against the authorities will prevent creditors from visiting the person's home to recover their credit. Further, approach the bank again and explain your financial situation. In addition, request a lower settlement amount that you can afford to pay and be prepared to provide documentation of your financial hardship, such as income statements, loss of business records, or medical bills.
If you are harassed by the bank or the recovery agent, then you can resort to the police station and can file a complaint. You can file a civil injunction suit in court with interim relief against the bank and recover damages for harassment. Legal action against the authorities will prevent creditors from visiting the person's home to recover their credit. Further, approach the bank again and explain your financial situation. In addition, request a lower settlement amount that you can afford to pay and be prepared to provide documentation of your financial hardship, such as income statements, loss of business records, or medical bills.
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A.Dear Client,
Lenders are not legally obliged to settle a debt lowering your outstanding debt, but because they want to protect their bottom line, they may agree to a debt settlement to avoid further financial loss. You can try to negotiate a debt settlement on your own if your pocket permits to repay entire outstanding at a time for one time settlement of dues, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with chargeable fees. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial crisis, there are also few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Finally, when you settle a debt with a credit card company, your account is closed once the settlement is complete. So you could potentially have no credit facility to use a credit card further owing to your poor credit score. Further, a quick counselling session with a certified credit counsellor can help you to discover your options and choose the right path forward
Lenders are not legally obliged to settle a debt lowering your outstanding debt, but because they want to protect their bottom line, they may agree to a debt settlement to avoid further financial loss. You can try to negotiate a debt settlement on your own if your pocket permits to repay entire outstanding at a time for one time settlement of dues, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with chargeable fees. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the remainder. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial crisis, there are also few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Finally, when you settle a debt with a credit card company, your account is closed once the settlement is complete. So you could potentially have no credit facility to use a credit card further owing to your poor credit score. Further, a quick counselling session with a certified credit counsellor can help you to discover your options and choose the right path forward
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