Credit card debt of senior citizens
Querist :
Anonymous
(Querist) 27 December 2011
This query is : Resolved
What legal action could the assigned credit card debt make on a defaulter who is a senior citizen living on with meager financial resources? Will a negotiation for a settlement of debt at 50% of original debt(available credit limit on the CARD) achieve success? Will the agency initiate court proceedings?
ajay sethi
(Expert) 27 December 2011
hypothetical question . bank will try its best to recover full amount . if amount is substantail bnak may file a summary suit for said purpose . if however chances of recovery are bleak bank may come to a negotitaed settlement but it will hurt your credit history.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 27 December 2011
yes the process of legal recovery is tedious so they will come for negotiation and it will depend on your skills what settlement is arrived.
If you can face the tantrums of recovery agents for some time they will live you alone just because in the initial phases of credit card boom many proper legal formalities are not done.
Querist :
Anonymous
(Querist) 27 December 2011
The debt in question is no more with the card issuer bank.It has in fact being assigned to a debt collector/buyer.My question is whether a settlement along the lines of 50% on the original available credit limit on the credit card would be acceptable to the agency?To prove the status of debt, doesn't the agency have the liability to validate it? Do we not have the right to know whether the debt cited is real?
ajay sethi
(Expert) 27 December 2011
there is no fixed formula which is followed .
you cannot say that they will aceept 50%
as far as debt is concerned when you used the card for making some purchases you signed on the slip . once you signed on the slip you duly accepted the terms and conditons for usage of the card . the debt is real . in addition bank sends statement. did you at any stage dispute the genuine ness of statement ?
Advocate M.Bhadra
(Expert) 27 December 2011
You should try to settle the matter with the bank,the process is lengthy to recover the outstanding,so Bank may be agree with a considerable amount through 'Lokadalat'.
Deepak Nair
(Expert) 27 December 2011
Usually, the banks try to settle the credit card outstandings by way of negotiations in Lok Adalats. In such negotiations, you can quote your amount. But that may not be necessarily accepted by the Bank.
We cannot say the bank will waive off 50%.
But, usually the bank waive off only the amount of interest (entire or partial) only.
But there are some exceptional cases too.
So, since your father is a senior citizen, you can try your luck.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 27 December 2011
Legal process for recovery is lengthy, they have to appoint advocate , their executives who are highly paid have to attend court.
To avoid all this they give job to recovery agents who do not have any legal power but work on pressure tactics.
Ultimately the matter goes to Lokadalat and you will get notice from them. There are thousands of cases in one go. Credit cards, mobiles, internet etc etc from big companies.
So keep cool, bid your time till matter comes to Lokadalat where they will accept whatever you can offer and the matter will be settled on spot.
prabhakar singh
(Expert) 27 December 2011
Have patience,do not get afraid of duns made by debt buyer and feel pressure less,wait till things reaches in lokadalat where his age and remorselessness shall ultimately work if you handle properly at then.
Querist :
Anonymous
(Querist) 27 December 2011
The credit card debt in question was handled by legal experts appointed by the Bank authorities .But due to shortage of funds an agreement could not be arrived at during arbitration and conciliation talks. Now that the issue has been handed over to debt buyers,will there still be hope for legal intervention by way of LOK ADALAT mediation?
Deepak Nair
(Expert) 27 December 2011
Have patience as advised above. The matter will definitely come to Lok Adalt.
Another possibility is that, considering the age and health of your father, the bank person themselves will approach you directly for a settlement for a lesser amount.
Deepak Nair
(Expert) 27 December 2011
But Waiver of 50% is very much difficult
Nadeem Qureshi
(Expert) 27 December 2011
Dear Querist
it is possible to get 50% waiver on principal amount for this you can approached the bank official & if any agency person threatened to you or use any type of misbehaviour or use muscles men then no need to worry file a complaint against them in nearest police station and one copy of the complaint send to RBI Ombudsmen.
if the bank file any recovery suit agianst you then no need to worry in this matter to when you get summon, appera before the court & take time for you WS and approach the court for mediation for settlement the case.
feel free to call
Devajyoti Barman
(Expert) 27 December 2011
Yes all have rightly advised and I agree with them.
Querist :
Anonymous
(Querist) 27 December 2011
Is it okay if an assigned debt recovery firm(debt purchaser) agrees to settling the credit card debt to 2/3 of the principal amount( available credit limit cited on the card statement) ? What are its pros and cons?
Shonee Kapoor
(Expert) 27 December 2011
There are no pros and cons.
Settlement arrived by the negotiations would be best.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Querist :
Anonymous
(Querist) 28 December 2011
What precautions should be taken while settling the credit card debt with the agency? Can a cheque be issued safely towards settlement amount? Will a settlement letter reflecting the status of debt being closed be enough ?
Deepak Nair
(Expert) 28 December 2011
You can pay the settlement amount by way of cheque/DD/Cash as per your convenience.
Give the cheque under cover of a letter stating that you are paying the amount as full and final settlement and no other amount is due and pentding to be payable by your father to the bank.
You can ask the bank to provide a letter acknowledging the receipt of amount as full and final settlement.
Querist :
Anonymous
(Querist) 28 December 2011
The debt cited is in fact that of mine only...not of my father as you have understood( I said that the credit card debt is no more with the card issuer bank ,but with an agency to which it has been assigned by the original firm) . Will I be not revealing my Bank account particulars if I prefer to settle the debt through a cheque payment? The real card issuer is totally off the scene here..it is between the agency and myself.What sort of risk could be expected in this transaction?
Deepak Nair
(Expert) 02 January 2012
Sorry, difficult to advise.
After all these hrd work by the learned experts, you are disclosing actual facts of the case, whic you wuld have stated at the beginning itself.
This is an irresponsible behaviour on your part.
Querist :
Anonymous
(Querist) 02 January 2012
Dear NAIR saab, never in any level of my seeking expert legal opinion from people like you did I indicate a wrong notion. I have not expressed anything about the concern of the debt of my father who is dead and gone a quarter century back. By ASSIGNED CREDIT CARD DEBT, I just meant that the situation pertains to the debt being carried over to an agency by the credit card issuer bank. Hope I am clear. No IRRESPONSIBLE behavioral violations from my side....further suggestions most welcome Sukumaran nair
