Dear Manish,

I had a car loan from HSBC around 12 years back. Since my repayments for 2-3 yrs were on time, the Bank sent me a correspondence saying that they had granted me a Credit Card with a limit of Rs 1 Lac. This card was never received by me, & thereafter some one utilized & maxxed out the card, this was reported to the bank by me, but I dint get an fir done since I was not in India at that time..Thereafter the bank started making its collection agency hound me by calling every ten minutes & coming to my residence to create a scene..In spite of my repeated letters & discussions with HSBC bank officials here in Ahmedabad nothing much came about.In an effort to just clear this issue, I decided to settle with them & paid an installment, but due to my traveling & staying abroad didnt pay the remaining installment..

My Cibil score was 820 in July 2013, now HSBC has filed a report (after 12 years) with CIBIL in October 2013 saying there is 1.5 Lacs outstanding & ‘settled’, due to which my CIBIL score has plummeted to 630. I wanted to know that if I pay the full amount to the Bank, then will I get an NOC, (not a Settled) status & will my CIBIL score revert back its original?? I have 2 other CC’s (all clear,not even a single late payment) & a Housing loan for 45 Lacs which I am paying for the last 7 years on time & there is NO other outstanding/liabilty or overdue amount from ANY other bank..Should I repay the HSBC bank in full? & if so, how long will it take approx for my score to go back to positive??

Await your reply , thank you!