Legal Question in Credit and Debt Law in India

Credit card default

I had taken up a loan against credit card of 75,000 INR, I also had a 2 credit cards of the same bank. There was some outstanding amount in both the credit cards as well. The bank suddenly closed the loan and debited all the money i had in my bank a/c with them. Then they foreclosed the loan as some payments on the second credit card were due. Now they have accumulated an agonizingly high amount on the loan and are asking me to pay it at one go which is not possible for me. If i am not able to do so, they have warned me against a legal action via email. Please advise on the legal implications in this situation.


Asked on 1/26/09, 6:04 am

2 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Credit card default

You may need to settle the dispute with the bank and start making payments in affordable instalments.

The bank may be entitled to file a suit for recovery and you may be liable for litigation expenses.

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Answered on 1/26/09, 5:29 pm
Venkatesh Babu, E. V & M Associates

Re: Credit card default

I request you to kindly get in touch with the bank and settle the issue amicablily. Try to convert into easy monthly installment and negotiate for no interest or reduced interest. Further to that, you may ask for the terms and conditions which you would have signed in while obtaining the Credit Cards and act accordingly. Please see the default clauses.

With regards

E.VENKATESH BABU

ADVOCATE

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Answered on 1/28/09, 3:17 am


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