Credit card, personal loan recovery

In India, it is not difficult to trace a person, banks employ such agencies for tracing or if it is not worth, they sell away such overdues through discount as Special purpose Vehicle to out side agency.

One need not tell as to the capabilities of outside agency, and the extent to which they go to for recovery.   They may make the life horrible even to the most influential persons.

You can never escape by evading funds taken from a commercial bank (depositor's funds), when more capable persons who left India are being hunted down.

Contact the banker and discuss.  Members are not competent to state the amount for which you settle or whether your proposal is acceptable or not, as every thing depends on your financial worth at present.

The only way for you is to contact the bank where you loans are outstanding. You may go there in person and discuss the matter with the concerned. Normally, banks allow borrowers One Time Settlement(OTS) for which if you can convince the Officials concerned with valid reasons, you are likely to get maximum concession. It is not known what is the present liability. You can tell the bank that you can only clear the book liability, provided you are genuinely not in a position to repay. If bank in its independent enquires finds that you can pay the entire loan, OTS may not be given.

You have borrowed public money through credit cards, and dictating your terms to Bank.  There is no one in the world without any problems, but individual problems should not stand in commitments to financial institutions.

What is there to defend ?

Please believe me, contact the banker and negotiate for a compromise.  The write off means the transaction can not be shown in financial accounts, but all those write off accounts will be sold to outside agency for a throw way price, as recovering small amount is great for them.   If it is sold away to outside agency, the agency makes your life horrible with their harassment.

When once you have been benefitted never try to evade, defend or raise legal issues like the limitation.  For you facing the bank may be the first time, but a banker might have seen most severe and hopeless cases in the past, and outside agencies can tackle such cases as their personal amount is involved.  Please shed down all your assumptions that because you have not provided correct address, bank or agency can not find you.

If you have AADHAR, if you have a cellphone, with modern technology they can track you at any place.  Bankers are polite and polished whereas outside agency is rough and tough, they do not care for anyone.

Yes it is written off in the books but they are trying to recover through agents so that if you pay any thing now new limitation will start.

so better to ask them to file case and if they do than you can compromise.

Mr. Sanjay,  the credit cards and the personal loan were availed by you as per your own decision to meet your needs at that time.  When u have the capacity to repay, why should u not repay?  It appears that the bank  that lent u is a public sector bank.  A private bank would not have let you off so easily.

Evading dues to a public sector bank results in increased burden on the government.  Funds of the public sector banks are of the public, you, me and everyone in this country. When u have the means to pay, why to avoid?  forget about the limitation and all.

be sincere to yourself first.  Though it is shown as writeoff, it is only for accounting purposes as pointed out by Mr. Prasad. One time settlement is possible. Approach the bank and settle the amount. 

remember what John F. Kennedy said? “Ask not what your country can do for you; ask what you can do for your country.”  

try to do good to the country, it will result in good to you also.

Thanks Everyone. I understood everything.

Now, my question is- I swiped/withdraw 1,50,000/- 8-9 years ago. That would have gone upto 8-10 lacs as of now. Or may be more than than. 

I earn 15,000/- per month.

Should the settlement negotiation be on 1,50,000/- OR 18-10 lacs as they will say now. 

Can I get an EMI option on 1.50.000/-...with all the interest rates and late charges waived off.

And can they win the case as I said "minimum time limitation barred"?

and then pay as I want

Sorry Mr Sanjay,

If you have availed Rs.1,50,000/- and if you wanted to pay that Rs.1,50,000/- after 9 years in EMI dictating terms to a Bank, Bank cannot accept.

Members are not competent to suggest as to how a Bank reacts.  The Bank has it's own investigation/detective squad and gathers pucca information as data.

Every thing depends on the data available with them.  Till you reject to pay in writing limitation period can not commence in credit cards.  As per Bank's point of view limitation period commences from date of issuing notice, and hence they send statements and never send demand notices.

So what can be done now?

As I said, I only earn 15,000/- per month. How can I cope up with this situation. At the most , even if I dont save a single penny, I would be able to pay 2-3k every month as EMI's. 

Can they take this issue to court?

I believe court will also see the monthly earnings and genuine expenditures of the citizen and accordingle decide. 

Because all we know is these banks are just looting middle class people.

Nirav Modi and Vijay Mallaya can fly abroad, we cant. 

Dont just panic me by telling the consequences, suggest me a solution please.

YOu can understand my state of mind at this moment. 

so what can be done now?

How members can decide as it is your duty to convince your Banker.

As I said, I only earn 15,000/- per month. How can I cope up with this situation. At the most , even if I dont save a single penny, I would be able to pay 2-3k every month as EMI's. 

Inform facts to Bank and wait for the decision

Can they take this issue to court? I believe court will also see the monthly earnings and genuine expenditures of the citizen and accordingle decide.

They may not drag you court.  They will bundle all such loans as Special purpose Vehicle and sell away to agency.  These agencies are having high influences in every level.  They employ muscle man and subject such defaulters to harassment and go to any extent for recovering as they have purchased the accounts.

  Because all we know is these banks are just looting middle class people. Nirav Modi and Vijay Mallaya can fly abroad, we cant. 

Are the Banks taking your money into their private accounts.  Or Are you paying money out of any generosity?   You have availed a limit.  Bank has provided that amount from Public deposits.  Public deposits must be returned.  That is the issue.  Never compare with fugitives to escape from

reality.  Atleast those persons contributed to employment or economy to some extent and they have many assets that can be attached.   Being affluent and influential, such people are far from motherland being abused by persons like you and me.  Nothing is more shameful than this, inspite of all their riches.

Dont just panic me by telling the consequences, suggest me a solution please. YOu can understand my state of mind at this moment.   

Members can only state facts and likely happenings, to alert you of the consequences and it is left to you as to how you wish to face the situation.  Members can never assure you not to worry, let Banker go to court, Be happy without worry and court will be lenient to such defaulters and they may not charge any interest etc., The reality is being projected to you to make you alert and open negotiations with Banker.  I am afraid that now it is too late and they might have disposed your asset to Agencies, and then it becomes beyond your bargaining power.
 

So, I dont have the right to  live happily and peacefully just because I am a defaulter. 

They employ muscle man and subject such defaulters to harassment and go to any extent for recovering as they have purchased the accounts.
What do you mean by muscle men? Are they gonna hit me physically? Is there no action against harrasment and torcher?

What would they do at the extre level?

Can bank sell my property in this case?

Can I consult a lawyer as its been already mental agaony and torcher for the last so many years?

As these banks give you unsecured loans, they should not forcefully recover it. 

They give you limit of 50,000-80,000/- at such an early age. 

I am sure there would be thousands and lakhs of people who must have defaulted, torchered and awaiting for settlement. 

In such cases, courts and government should give the judgements in favor of citizens and not banks. As its ultimately the citizens who are torchered as an individual and not the bank. They are always in profit.

"I don't have the right to live happily and peacefully just because I am a defaulter. "

Indian Constitution has given rights as well as responsibilities.  As you are enjoying your rights, the Banks have also the same rights to dispose such defaults to outsiders and they are not concerned with your account after it's sale to private agencies.  The following is your status.

"Hi, I had 2 credit cards and 1 personal loan from different banks in 2008-09. Total debt was around 1,65,000/- wuthout interest. I was paying the EMI's for some months however missed on a few of them. "

After ten years, when the banks want you to repay such money which you have taken (it is not bank's money, but that of depositors) you state of your rights and allege that Banks are looting public !

If you can afford to go to Court, you are at liberty fight for your rights and show for  courtswhat you have used the credit card and personal loans and pray court not to recover any amount from you because you are not financially not capable of paying such amounts. (Rs.1,65,000/ 120 months means Rs.1,650/- per month)

Please understand the limitations of the forum and limitation to the guidance of members in open forum.

You have been only informed of the likely happenings, drawing experiences of similar incidents.

If a boy of 16 years steals a pair of shoes, in a shop, public beat him black and blue.  Whether they are considering the need of that boy at that time, whether they are having such powers, or whether there is a loss to public due to this incident may not matter in the spur of the moment. Age of the boy makes no difference to public.  You can not blame the shop keeper for showing attractive items for display.

Please learn about banking before alleging banker now of minting profits.  Out of every Rs.100/- Bank has to keep with Govt Rs,25/- with nominal/no interest, Lend Rs.40/- to priority sectors for lesser rate of interest, and it lends 35 as it may please.  Because the rate of interest given to deposits is very less, and as banks earn through income other than intterest, they may show profit on books.  Most of the times it is not true.