Torture by collection people from SBI – Credit card default issue

POSTED BY Rocky ON September 27, 2013 1:50 pm COMMENTS (10)

Dear Sir,

I am Rocky from Delhi & would like to present my issues to you.  I used to own 3 Credit cards between 2005 – 2007. I always paid my payments (Due & Full) in time, but then came a time in my life where I couldn’t pay my bills & became a defaulter. Now today, I am a bit better financially & wanted to settle these dues. All my 3 cards had an outstanding of 18000 (Average) at the time of default. Now after all these years, these dues have inflated into lacs (interest).

As of now I been contacted by two banks (One private sector & one public sector) for settlement, in which the private bank has agreed to settle it in Rs. 10200/-, which is ok for me. They have told me that they\’ll give me a clearance certificate on Bank\’s letterhead, which I can confirm with the Bank. Is it ok or do I need to ask them for any other thing?

Now the main issue is with the public sector bank (SBI). My card limit was only 20000 when I stopped using my card, & today when they call me up, they tell me that your limit was 50000, which is incorrect. I am ready to pay for my actual spend, Approx. 15k but they are asking for 50000 for the settlement or else they will file a legal case against me with the CIBIL amount of 1.3 lacs approx. As far as I have heard, In case of a Credit Card default the bank cannot go legal against you (being an Unsecured Loan).

What are the possibilities of getting a clearance without any legal implications if any? I agree & understand that I have made a mistake but I am not financially sound in order to pay such a huge amount, that too when I haven\’t even used it that much. I am a middle class man with a limited income & am supporting two families at this point.

This kind of torture by collection people (SBI CIBIL DEPT) is not right according to me. Please advise if I can take a tough stand against them by telling them that I cannot pay more than 15k? Can they take a legal stand against me or not? I am very serious & want to pay the debts off but I have a certain limit. Please help & advise?

10 replies on this article “Torture by collection people from SBI – Credit card default issue”

  1. Rocky says:

    Ji Sir… I will. But I haven’t received a call from them since yesterday, just after I said that I’ll be able to pay nothing more than 20k. In the meanwhile, I have found that one of my friends is working with GE-SBI Cards only. I spoke to him & he has assured me that he’ll try & get the amount negotiated to the best possible limit. I’ll meet him today evening, & will keep posted about the developments.

  2. ashalanshu says:

    Dear Rocky, please keep discussing the matter with SBI. You ‘ll get a positive outcome.

    thanks

    Ashal

  3. Rocky says:

    Dear Sir,

    The SBI issue still remains as it is. I just received a call from SBI people stating that my request for 20000 is not accepted by the Bank. They have got an approval of 28000 from the bank. What should I do? & arranging the money in such a shortwhile is not possible, secondly I cannot pay more than this amount. What should I do? They have told me that I’ll have to face legal consequences if I don’t pay the amount. The lady disconnected the call stating this? What should I do? It is such that they are literally forcing me either to suicide or to kill my family. Its only that I know my family’s situation & no one else can understand this. Please help.

  4. ashalanshu says:

    Dear Rocky, the info provided to you by the executive regarding timing is correct for the fact that 30th Sept is the last day of the month. Post that there ‘ll be 1/2 yly account closure work within bank on 1st Oct so no business day. 2nd Oct is a national holiday, hence no business day. So the account closure quote given to you for 20k Rs. is valid till 30th Sept.

    Please visit the branch, pay in cash or cheque. In case of cheque of SBI, transfer of money ‘ll happen immediately and so do your closure and other formalities. in case of cheque from non SBI bank, it ‘ll take time to get the money from other bank and hence you w’d have to wait for NOC,

    thanks

    Ashal

    1. Rocky says:

      I’ll pay in Cash. So your advice is that I should go to the bank & pay all the amount in Cash & receive an NOC there & then. What about A/C closure statement? Are NOC & A/C Closure Statement different Documents or is it just one document.?

  5. ashalanshu says:

    Dear Rocky, as of now settle the HDFC issue first and keep on discussing with SBI cards for settlement. You ‘ll get the desired settlement or at least 20-25K amount. this you should pay in 1 or 2 installments to clear the amount. After that collect the account closure statement as well as no dues certificate.

    thanks

    Ashal

    1. Rocky says:

      Thank you for your advice. I received a call from SBI today & they have now agreed to settle it on Rs. 20k. Their executive will visit on 30th Sep. to collect the money. Now I just wanted to know how does a NDC look like, or about the format. They told me that I can go to the Bank with their exec. & verify the NDC. But the telecaller has also told me that they will have to close & deposit the money before 12 or else the NDC provided by them will be invalid as 30th is the closing day for them. I am a bit worried & confused about this. Please advise.

      Also advice, that you said account closure statement & no dues certificate. So are these two different documents or just one. A little confused.. Hope U understand, its such a situation that I want to get out of it ASAP but don’t want to make any mistakes which I’ll have to regret later.

  6. ashalanshu says:

    Dear Rocky, how did the limit and actual use of card went up from 20K to 50K in case of SBI.

    For the other card, please do note as you are paying only partial amount and not the actual dues, your CIBIL report ‘ll be marked as settled against this old card. This ‘ll impact for your future loans.

    thanks

    Ashal

    1. Rocky says:

      I am very sure that the limit was never increased by SBI. I have spoken to them today as well, & now they are offering me to settle in 25k. The only torture is that they don’t even listen to me, I cannot pay more than 15 – 17k. What are the legal consequences if I fail to pay up the dues?

      Secondly, The lady at HDFC (After many negotiations) told me that my actual usage on my card (Princpal Amt.) is 11k which I would need to pay to clear off my name from CIBIL. Please note that even she was telling me an amount in tune of approx 1 lacs when she called me the first time. After I was reluctant that I have used my card for not more than 18k & had paid approx. 8 – 9k at the time of default, my principal amt. is nothing more than 9k, which I am ready to pay. The final negotiation ended on 10.2k which I’ll pay them by 5th Oct. 2013. Yesterday, I received a call from HDFC Chennai (Maybe their H.O.) to confirm my mobile no. & settlement Amt. Also I have been told that I’ll get every detail of HDFC letterhead which I can verify with their Cust. Care.
      The same is the story with SBI, but they are torturing me by the name of Legal Consequences & as far as I know off the SBI CIBIL Div. (As they told me) is nothing but a third party collector because they are not talking to me in a mannered way, like the HDFC people. They (SBI) asked me to visit a said court & a said chamber no., which is usually done by a 3rd party collector. What should I do?

      Can anyone help me with the format of both letters, Settlement & Clearance of Dues, so that I can verify that I am getting the right thing.

    2. Rocky says:

      & seriously, I am not looking to get any loans whatsoever in future so I am not concerned with that; the only concern is that I don’t want any calls from these people & that can happen only after a settlement.
      I don’t want any legal hassles whatsoever, & my intention is clear that I want to pay off all my debts but in the right way.

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