Need advice on HSBC Credit Card Settlement.

[Priya]

Hello,

I had a credit card in the year 2005 in Bangalore. My payments were regular during the time I was using the card, but later as I shifted cities and due to my negligence I wasnt able to pay the credit card dues.

My credit card limit was 22,000 INR and I had spent around 21,330 INR. Now in May 2010, I got a call from someone stating that they are HSBC asking that now my credit card dues are 1,35,000 INR. Obviously I cannot pay that much.

Please note:
1> The caller is not ready to provide me anything in the writing.
2> As I have not received any statement on my email for the past 5 years, I have asked for the statements and they have denied it.
3> They are not ready to divulge any information on their records other than my email address, card limit and total outstanding.

Question:
1> How do you suggest I negotiate a good deal?
2> Can I ask them to waive off all Intrest and start the negotiations on the Principle Outstanding?
3> On the Principal Outstanding, how much  do you suggest should be the max. payment from my side? I am not in a position to pay anything more than 75% of the total outstanding i.e.: not more than 15,000 INR.
4> In the event of HSBC agreeing to my offer of 15,000 INR, should I expect a statment or offer letter stating if I pay 15,000 INR, this would be considered as a full and final settlement?
5> How should I deal with the fact that they are not ready to communicate to me anything in the writing.

Thanks in advance.

Regards,
Priya

[cardbhai]

Question:
1> How do you suggest I negotiate a good deal?
2> Can I ask them to waive off all Intrest and start the negotiations on the Principle Outstanding?
3> On the Principal Outstanding, how much  do you suggest should be the max. payment from my side? I am not in a position to pay anything more than 75% of the total outstanding i.e.: not more than 15,000 INR.
4> In the event of HSBC agreeing to my offer of 15,000 INR, should I expect a statment or offer letter stating if I pay 15,000 INR, this would be considered as a full and final settlement?
5> How should I deal with the fact that they are not ready to communicate to me anything in the writing.

Thanks in advance.

Regards,
Priya

Priya,

Legally you have signed documents stating you agree to their terms and conditions. However, moving cities and not repaying is an excuse that won't be upheld as you were fully aware that you have borrowed money and are under the obligation to repay. Now the question of statement not reaching is debatable as the bank will argue that you never informed the change of address, etc... Anyway, here is what you can do..

1.Good Business Communication and Negotiating Skills Help here. One of the first and important step in Business Communication is Write to them in a manner where you should get the response you anticipate.
2.You can ask for waiver but they won't do it. Even if they do, they will see to it that your CREDIT HISTORY is DAMAGED SEVERELY.
3.Even with Nominal Personal Loan interest of 15% your payment will be about 45,000. So I believe they may be willing to settle around 60,000 or if you are lucky then 45,000. If they settle anything below that, Enjoy. [Normal Procedure is convert it to Personal Loan and then the interest on it]
4.Always ask for Full and Final Settlement, clearing all outstanding dues on the account [get the Number]
5.Initiate Contact with the Bank's Nodal Officer in Writing, then if he doesn't respond approach HSBC Banking Ombudsman then to RBI Ombudsman

Communicate in Writing, maintain evidence of letters (Acknowledgment from the bank)

Additionally, get your CIBIL report and see what's going on with the credit bureau under your name.

Best,
CardBhai