Biggest Shock In My Life

POSTED BY Nasi MPK ON June 21, 2013 3:54 pm COMMENTS (9)

Dear Experts,

 I’ve applied for a home loan with SBI, they told me that in my CIBIL report I’ve a “Written Off” status against my name for a credit card (nearly Rs: 1 Lac). So without getting NOC from the credit card issuing bank they will not able to process my loan.

This was a biggest shock in my life, because till now I’ve not missed any credit card payments or EMI. I’ve taken home loans, personal loans, car loan etc during the last 8 years, all of them I payed back and closed. Even I’ve taken my CIBIL rating 6 months ago, I had 800+ score.

I took a CIBIL score immediately, now my score reduced to 620. The written off status shown against a credit card which I hold in way back in 2004 when I was in chennai. But I’ve closed this account before relocating into a new city. After that I’ve not received any communications from them.

At the moment I do not have any proof for closing this account 🙁 What do I do now?
I went through various threads in this forum related credict card settlement. What are my options. Looking for your valubale suggestions.

 

9 replies on this article “Biggest Shock In My Life”

  1. Nishant Raut says:

    Hi,

    I had purchased a used car,the car was financed by ICICI Bank. The loan of the car is paid through settlement. Now the ICICI Bank is not issuing the NOC because the owner of the car has an another person loan which has to be paid. So my questions is, why bank is not issuing the NOC for the paid car loan and why they are doing so,is they have power to hold the NOC of paid loan ?

    1. Because the car loan is NOT PAID. Its settled (not full payment)

  2. RAMAKRISHNAN says:

    I SOLD THE PROPERTY IN MY NAME AND PURCHASED A BIGGER ONE IN MY WIFE’S NAME BY AVAILING BANK LOAN IN MY WIFE’S NAME (SHE IS WORKING FOR SOUTHERN RAILWAY IN CHENNAI) AND BY INVESTING THE SALES PROCEEDS IN THE PROPERTY PURCHASED IN MY WIFE’S NAME.CAN I GET TH E LONG TERM CAPITAL GAIN TAX BENEFIT?.I BOUGHT THE PROPERTY IN MY NAME SOME 15 YEARS AGO. PL CLARIFY.

  3. Reji m says:

    Manish, could you please write an article about the “Credit Card Cancellation Procedure”. It would be a great help for lots of people.

    1. Deba1234 says:

      right said, Reji m.
      A guide for credit card closure will be great help.

  4. Nasi MPK says:

    Unfortunately I did it through telebanking. I called up them, and told them I want to cancel the card. They said I’ve to clear my out standing amount of 6000, which I had payed immediately through cheque (that amount was cleared as well). I didn’t took NOC or any written confirmation from the bank, looks like that was the biggest mistake I did 🙁

  5. How did you close the account ? What do you mean by that ?

    Did you go to bank and surrender the card and cut it into pieces and then took the NOC from bank ?

  6. Credexpert says:

    Dear Nasi,

    Any written communications that validates the closure of the said credit card could have been used to dispute the matter with the lending institution. What we assume is that your request to close the credit card was not processed and the outstanding amount ballooned over a period of time and was finally written off by the lending institution.

    As your timely and consistent repayment behaviour towards your loans indicates your servicing capacity. We would request you to contact the lending institution and look into the case for:
    1) Was this closure of the said credit card complete?
    2) If yes then, ask them to provide you with the NOC copy
    3) If not then, explain them the details of the case and the next course of action would then depend on their reply. Do not opt for a settlement, as this remark will also impact your credit score.

    Regards,
    Credexpert

  7. Reji m says:

    Looks like another prey in the hands of credit card companies. I am not expert, but based on what ever I’ve read from various forums, Full Payment seems to be the best option, instead of going for settlement.

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