Credit Card / Personal Loan
Napster
(Querist) 03 June 2011
This query is : Resolved
I was using citibank credit card and had a personal loan on the card. Due to financial problems i have not been making payments since the last 2 years. My situation has not improved but i did write to the bank that I am still not in a good poistion and that if they can consider my request and I am already in huge debts and would like to settle this accounts for Rs. 20,000.00 in 3 installments. While the bank is saying the cummalative amount of both the product is about 5 lakhs and the best they can do is settle at 2.5 lakhs. This is simply not the amount i can afford or arrange by any means. I have however asked them that if they can give me some time and i will try and see if i am able to arrange some more funds and i would update the bank accordingly. But i have also made it clear that what they are offering is something i won't be able to arrange and the best i think i would be able to arrange is 30-40 thousand at the best in 3 installments.
The bank is not threatning a legal case against me. While i have told them that there is nothing that i can do to stop that in my current situation and i will leave it to the bank if they want to go ahead with the case as it is not my decision.
The point is that i had never applied for this credit card this was offered to me as an promo offer few years back as a Jet Airways frequent flyer member and subsequently the personal loan was offered on the credit card.
I want to know what case can citibank file for and what consequences can that have on me and my family. How do they intent to take the money if i don't have that kind of money to offer.
Please help me with the legal advice on this and how to tackle this situation and how to ensure that citibank doesn't harm me or my family.
Amit Minocha
(Expert) 03 June 2011
if you have already transacted on the card, you can not take excuse if was a promo offer etc. However, you can send a legal notice to bank asking for copy of loan application documents and forms filled by you at the time of grant of card along with copy of bank norms followed for providing the card. Also ask for the elgibility criteria and your eligibility report with respect to card. If they donot provide you file a case in Court that without due process of law they should not recover the alleged amount from you and also to declare their demand as illegal, null and void. By this way they would come to a settlement on more flexible terms. If you reside in Delhi you may contact me at : amitminocha@yahoo.com
Amit Minocha
(Expert) 03 June 2011
if you have already transacted on the card, you can not take excuse if was a promo offer etc. However, you can send a legal notice to bank asking for copy of loan application documents and forms filled by you at the time of grant of card along with copy of bank norms followed for providing the card. Also ask for the elgibility criteria and your eligibility report with respect to card. If they donot provide you file a case in Court that without due process of law they should not recover the alleged amount from you and also to declare their demand as illegal, null and void. By this way they would come to a settlement on more flexible terms. If you reside in Delhi you may contact me at : amitminocha@yahoo.com
Guest
(Expert) 03 June 2011
A bank cannot issue credit card without signing on the prescribed application form and providing the other documentary evidence, like personal identity and address proof, etc. So, you cannot say that you did not apply. You applied for loan and got that also, so that point is negated by all these instances.
Interest on the outstanding installments is also charged on cmpound basis.
The only relief you can get is to get waiver of interest from the bank. You would be lucky, if the bank agrees to agree on waiver of part of the principal amount also.
You can try to bargain with the bank.
Suresh Gupta
(Expert) 04 June 2011
i agree with Expert P.S. Dhingra.
