Asset reconstruction company

if there is a breach of contractual terms ith ARCL then you can move civil court under contract law

Issue I am facing is :

a) Credit card company sold overdue amount to asset reconstruction company.

b) I want to clear all the dues of the card and close the a/c.

c) I send mail to asset reconstruction company to send me , statement of a/c so that i can acertain all the dues owned by me.

d) then i can ask asset reconstruction company for letter that clearing dues u will give me no due certificate.

f) but asset reconstruction company is not responding to my mail regading statment of account.

g) then how can i proceed now ? i have even went to nodal officer of asset reconsuction company but no response.

h) what should i do now ? is there any other way rather than filling case or filling case is the ultimate solution.

g) disadv of me is ... i didn;t contact the bank and asset reconstruction to pay the dues earlier ?

Any guidance would be helpful to me.

Approach a lawyer specialising in consumer cases and build some record to tild the case in your favor. You may get relief in DCDRF.

Dear Mr.Supratim Paul,

You may write to Reserve Bank of India(RBI)  which has given license to the Asset Reconstruction Company (ARC). All the ARCs are working under absolute control of RBI. RBI  is giving guidelines to all the ARCs in the form of circulars  from time to time laying down the manner in which ARCs have to deal with the customers of Assignors (the Banks).

About the reluctancy of the ARC you may complain to RBI of your State, furnishing the full details your case without further loss of time, for necessary direction to ARC. If they do not oblige RBI also, it may cancel its licence. Mark a copy of the complaint to ARC and see the reaction. RBI is the appropriate forum for expeditious action in such matters. Do not go to civil court or consumer forum and waste your hard earned money in litigation. OK.

I thank for the reply. I have already sent letter to RBI Mumbai Dept of Non Banking Supervision , Customer Service Dept and marked in the mail and I have not received ny reply from RBI yet.

Awaitng.  

Also , I want to solve the issue in the bank and RBI level.

ALso , I want to know one thing ... when I have asked the ARC for the statement of account for the credit card then they replied as 

Please note that we are neither a bank nor a credit card issuing company. Hence we do not issue credit card statement and as such are not in a position to furnish the same to you.

Then how they have increased the overdue amount from around 35,000 more than the value it was sold by the bank to the ARC.

I want to know are they entitled to added monthly interest in the credit card account. 

The ARC is bound to furnish you full details of account  since they stepped into the shoes of their assignor. Send a reminder to the ARC and RBi. RBI will be very busy and they do not attend petty matters on urgent basis. But they certainly advise the ARC with intimation to you. Patience only solves the problem. If you cannot wait you may choose your option to into litigation as advised by your local lawyer.

Hello All,

I have recieved a reply from the ARC and they have given the break up , but in a plain pdf file send from their official e-mail id.

ARC is entiteled under law to charge interest on the outstanding amounts from the defaulting customers.

I would like to know if ARC is entiteled to add monthly interest charges on the credit card write off , then as they have mentioned in their mail , then under which section of which law  ?

ARC having stepped into the shoes of the assignor of the financial asset is entitled to charge interest on the debt purchased by it and there is no doubt on this point.

I would like to know , I am planning to make full payment of the overdue amunt due in ARC  which was reported to CIBIL as WriteOFF.

I would like to know , once the full payment is done will the Write OFF be removed towards the account from CIBIL once the ARC update in CIBIL wihin 30 - 45 days after payment.

The “Written Off’ status shall be bad for you and can affect your future credibility and ability to take loan.

You need to obtain/extract written undertaking from Bank which has written off the a/c and ARC both:

-- that they shall clean your credit history and send a communication to CIBIL/EQUIFAX/EXPERIAN/MCNF and bad customers list of the bank any other credit rating agency bureau, with a copy to you stating that full amount has been paid and there is no outstanding and written off status shall be removed and the payment made by you shall have no adverse bearing on your future loan taking ability and credit score.

--that they shall supply you by redg. post the CIBIL report showing name of member{ bank and ARC} which has updated you’re a/c and showing that your credit history has been cleaned and there is no element of delinquency left in your CIBIL credit report.

You are not asking for any settlement and paying full amount hence both bank and ARC should feel obliged. ARC is going to make money as it had bought the written off a/c at negotiated cost {may be less than principle amount you owed to ban} and is going to earn full principle amount with late fee+finance charges+interest and all.

In case you do not negotiate well you may not desired CIBIL report and in stipulated time { 40 days as mentioned by you} and again you may be facing a situation.

Hence obtain everything in writing by letter under original seal and signature by hand with full name, designation, dept, address with pin code, phone number with STD code , email id, of competent employee of ARC/Bank mentioned below his signature.

I would to inform you that I even want the same and but these people not responding properly and when I initailly as for the credit card monthly break up then they provided some amount and when i saw my cibil copy they have updated some other amount and now when they have given me a diffrent amount. so i have three different amount and i don't know which is the correct amount , i have asked them now bu these people are not replying.

then i went to the bank who issued the card and these guys telling to contact the arc only. now arc is not responding properly and in this regard i have compalint to rbi but i am expecting response from them ... its been one month they are doing like that , if they want they can finish the issue but they are not responding and streaching it ...so that they can extract more money ... and they don;t want anything in written ...they only want in phone .... which will have no evidence in future for me ..... what i want is to give me correct dues they tell me ....and then i can ask for the letter which will have the points which u have mentioned in your post and then i will issue the money to them as how can you believe them if they take money and not update in cibil or give me no dues then they will trouble in future again.

hence i have kept all communication with them in written and no discussion with them...but these guys are not responing to me ..... sometimes i feel i will file case agains them ..but the problem is their head office is in mumbai and i will have to file in mumbai and i am not from mumbai which will be difficult for me ..as i need to travel too and forth to mumbai....always......and problem is that if you file case then it will go for long time..... and i will loose money and money...... and i am fed up with these ....where i am showing real intension of paying but these guys are not helping. if you have any suggestion to screw them up tell me ....

The complaint if any to be lodged by you shall be at your location even if the ARC is at Mumbai.

You may go thru the card issuance form signed by you and check does it contain any explicit clause that you’re a/c can be sold to ARC? If you do not have it you may demand a certified copy form Bank and ARC. They are under obligation to supply it and shall have to bring it to the court of law.

Have you maintained complete record of all phone calls received by you and made by you and did you record the calls? Did you submit the minutes of discussion in writing?

It is felt that you are not able to handle the bank and ARC on your own. There is a limit to everything.

Entrust the matter to your lawyer specializing in consumer matters at your location. Let your lawyer handle it. Met your lawyer with all record and give inputs in person.

A smart lawyer can build up complaint and DCDRF may decide that only principle amount is to be paid and bank and ARC shall clean the credit history and call back your name from list of defaulters and shall supply you a copy of CIBIL report.

If you want you may call bank and ARC to settle an amount and supply you a settlement letter which should have a validity of say…15 days.Do not transfer the amount in their a/c and rather pay by cheque and ask them to collect the cheque on a appointed date from you at your location and ask for acknowledgment of cheque on printed receipt of the company and NOC and all other docs.

You may proceed as deemed fit at your end and suitable to you.

Yes bank can sold to arc and it is as part of the terms and condition of the credit card.  I never had any discussion with them over phone as i know , only written communication will have proof in future and can be produced in the court if required. also i don't want to have any discussion on phone and eben i have told the bank and arc about it as i want to have communication over e-mail or postal only.

I also want to talk to a lawyer but , i will wait for some more time and see if they respond , but if still not providing servce to close the account even on my repeated course them i will approach legal course which i want to keep till last as if it ges to court it will take years to get over and in the process i will loose money like anything and i am not so much income also. also i dont know any lawyer of my own ...and even if i go to a lawyer i would necessarily want a laywer which donesn't ask for money and mony and help me get out of the problem. 

if you are aware of any lawyer of as such u can help in this case.

i dont want any kind of settlement which will mean i will never get loan as it wil be marked as settled in cibil.moreover i am planning to pay by DD and send through registered post on acknowledgement.

You may visit DCDRF at your location and inquire about consumer case lawyers. The fee is not very high and is reasonable. Your near and dear ones, NGO’s, consumer groups can also guide you to a good lawyer. If you are confident you can fight your own case. Some consumer activists can also help you.

If you want to contact a LCI Lawyer you can conduct lawyer at following link:

https://www.lawyersclubindia.com/lawyers_search/#.UMAuqfIyzvo

We are neither aware of your location nor any lawyer at your location.

It is good if you are building record in your favor.