Legal Advice on Credit Card / Personal Loan notice
Querist :
Anonymous
(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.
prabhakar singh
(Expert) 05 June 2011
"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. "
THE ABOVE IS COPY PASTE ACTION OF WHAT YOU HAVE WRITTEN.
NOW READ ANSWER:
BE IT ONE WAY OR THE OTHER,NO MATTER,YOU HAD A CREDIT CARD AND HAVE USED IT ON YOUR OWN TO TAKE A PERSONAL LOAN.SO YOU ARE DEBTOR AND BANK IS YOUR CREDITOR.
YOU ARE UNDER LEGAL DUTY TO DISCHARGE THE DEBT ACCORDING TO TERMS OF LOAN OR TO THE SATISFACTION OF YOUR CREDITOR,IF IT IS READY TO SETTLE FOR A LESS AMOUNT THAN DUE.
IN CASE NO SETTLEMENT TAKES PLACE,THE BANK IN ITS RIGHT CAN PROCEED FOR TO FILE A SUIT OF REALIZATION AND AFTER OBTAINING A DECREE CAN GET IT EXECUTED BY SALE OF PROPERTIES (MOVABLES OR IMMOVABLES)YOU OWN,YOUR P.P.F. A/C IF ANY WILL BE SAFE.
AND IN CASE YOU HAVE NO PROPERTY AT ALL FROM WHICH THE DECREE,IF ANY PASSED,CAN BE SATISFIED,THEN THEY MAY ASK THE COURT TO PUT YOU IN CIVIL JAIL(NOT CRIMINAL) FOR WHICH THEY WILL HAVE TO PAY COST SO A BANK WILL NOT DO SO ,I KNOW.
YOUR FAMILY WILL BE NOT LIABLE FOR THIS DEBT BUT YOUR PROPERTIES SHALL BE.
