What Precaution’s & Documents to be taken at the time full payment or settlement which is already reported to cibil as amount due or suit filed or written off…

POSTED BY praveen p ON August 26, 2013 7:16 pm COMMENTS (2)

Hi sir,
now i know that i’ve a credit card with Barclays on my name which has been reported to CIBIL as WRITTEN OFF & ACCOUNT SOLD AMOUNT DUE-0, what i’m assuming is that the account which is there with PHOENIX ARC at Present is the same account, what BARCLAYS IS showing except this one AMOUNT DUE Rs.44OOO,ACCOUNT PURCHASAED .sir the only reason behind rush is that i want to pay off this amount due as soon as possible,so that i can improve my CIBIL Score. i really don’t know how much time will it take for my CIBIL Score look better,but i’m thinking may be within a year. don’t have much knowledge that’s why going with tough time sir. one more question say suppose if i contact the Phoenix ARC (recovery team), & suppose if they say both BARCLAY’S C.CARD & PHOENIX ARC are one account, how should i approach them i means to say, in the beginning itself should i inform them that i am ready to pay off the entire balance or should i ask for settlement on the account. suppose if i go with the settlement, will i be eligible to get future loans?????
Suppose i go with full payment, apart from NO DUE CERTIFICATE, what else should i ask them in written to make my Cibil record clean & clear. and or should i ask them one more NO DUE CERTIFICATE on BARCLAYS LETTER HEAD.
please help me sir.

2 replies on this article “What Precaution’s & Documents to be taken at the time full payment or settlement which is already reported to cibil as amount due or suit filed or written off…”

  1. Dear Praveen, if the intention is to cealr your CIBIL report & to improve the Score, please do not opt settlement. Please pay in full. Ask Phoenix to issue a letter that the amount paid by you is for the credit card orginally issued to you by Barclays. This letter is over & above the general No dues to be issued by Phoenix. Also ask Phoenix to send CIBIL the name deletion request against both accounts (Barclays as well as Phoenix)

    In future, as & when you ‘ll apply for new Loan, please bring that Phoenix letter mentioing the Barclays dues settled by you.



  2. Credexpert says:

    Dear Praveen,

    Firstly, I would request you to be patient, because improving the credit bureau score is slow and gradual process. There are many factors which are considered while deriving your credit bureau score like late payments, negative remarks, DPDs, etc.

    Lets answer some specifics:

    Phoenix ARC – is a asset restructuring company which buys out the NPA portfolios of certain banks/ lending institutions and Barclays might have sold the credit card NPA portfolio to Phoenix ARC.

    Repayment of the complete amount on this credit card is a good idea. Making settlement on this credit card will further impact your credit bureau score negatively and will hinder your future borrowings.

    Phoenix ARC will deal with individuals on case to case basis, but for you to keep in mind is that you are not opting for any settlement you want to make complete repayment of your balance amount reflecting on your credit card.

    After you approach Phoenix ARC or any asset restructuring company or any banks or lending institutions to pay off or for normal closure of the loan or credit card account you should make sure that you make sure that you are given:
    1. The No due certificate
    2. A letter stating the updating of the record in all the credit bureau

    This will act as a proof that when ever in future for whatever reason your credit bureau report shows wrong information on this credit card you have proof as verification.


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