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Non payment of personal loan and credit card due for 3 months
4 years ago
I was unable to pay my personal loan and credit card due for 3 months due to insufficient funds. I've 3 loans and 4 credit card, all used to maximum limit. Sbi bank people are calling my father and cousins for the repayment on behalf. I requested sbi if we can settle this by any feasible way but they rejected and told me that they will take me to prison for fraud and 420. Other banks have sent me a notice related to the non payment. I live in Bangalore but my parents live in a different city. My current income is also less to manage all of them. What best can I do to bring everything on track? Please assist
Deepak Yashwantrao Bade
Responded 4 years ago
A.dear client A footnote to the IPO prospectus details the collection procedure followed by SBI Cards. “SBI Cards may block the customer’s account, in the event payment is not received within stipulated payment due date, as communicated through statements and SMS," it says. “The account block, in such cases, may be temporary or permanent depending on delinquency stage, default potential, payment history," the note adds.
After roughly 6 months, your credit card account is moved to a recovery pool. “Accounts charged off post 191 days from payment due date are classified as recovery pool / post charge-off bucket," says the note. In such circumstances, it mentions the battery of legal tools used by the credit card company. As per the footnote the company has resorted to alternate dispute resolution channels like arbitration, conciliation, bilingual legal notice, privilege police complaint and lok adalat depending upon risk profile. It has also used quasi-legal, legal action under Sec 138 of Negotiable Instruments Act. Both the sections quoted above provide for a jail term up to two years and a fine for up to twice the amount dishonoured.
A case under the Negotiable Instruments Act is filed when your credit card bill payment cheque bounces while a case under the Payment and Settlement Act is filed when an electronic transfer (such as an autodebit) bounces due to insufficient funds. In both situations, the credit card company has to send you a notice asking for payment within 30 days of the cheque bouncing/auto debit failure. If you fail to make the payment within 15 days of this notice, a case under these sections can be filed.
After roughly 6 months, your credit card account is moved to a recovery pool. “Accounts charged off post 191 days from payment due date are classified as recovery pool / post charge-off bucket," says the note. In such circumstances, it mentions the battery of legal tools used by the credit card company. As per the footnote the company has resorted to alternate dispute resolution channels like arbitration, conciliation, bilingual legal notice, privilege police complaint and lok adalat depending upon risk profile. It has also used quasi-legal, legal action under Sec 138 of Negotiable Instruments Act. Both the sections quoted above provide for a jail term up to two years and a fine for up to twice the amount dishonoured.
A case under the Negotiable Instruments Act is filed when your credit card bill payment cheque bounces while a case under the Payment and Settlement Act is filed when an electronic transfer (such as an autodebit) bounces due to insufficient funds. In both situations, the credit card company has to send you a notice asking for payment within 30 days of the cheque bouncing/auto debit failure. If you fail to make the payment within 15 days of this notice, a case under these sections can be filed.
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A.Dear Sir,
You need not worry. You can get issue a legal notice on the basis of following judgment and they never call you again.
======================================================================
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.
Contact through the administrators of this website.
You need not worry. You can get issue a legal notice on the basis of following judgment and they never call you again.
======================================================================
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.
Contact through the administrators of this website.
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