SETTLEMENT HELP

[ashishthakur78]

HI, I have outstanding of 3 banks Citi Bank (3 cards) = 95000, HSBC = 37000  and Axis Bank = 24000. I applied for citibank settlement and got an offer of Rs.40000 first then got offer of 30000 but I am not in position to pay more than 15-20000. Will citibank get ready for the settlement? HSBC is not allowing to go for settlment. Have done settlment with Axis Bank in year January 2009 but they have not deposited the last cheque  of Rs.7000 in my bank now they are asking me to pay full 24000. they havent generated any bill Since october 2009. I have sent my application to BSBCI but havent received any help till now. Can any one suggest me some good settlement procedure I want to settle with all banks.


Regards,

Ashish

[cardbhai]

Kindly wait for BSBCI to respond, if it has been more than 30 Working days, drop a reminder letter.

[ashishthakur78]

Thanks, should I start my own talks with Banks to settle?

[cardbhai]

I said wait for the BSBCI to respond. BSBCI evaluates your case and then holds a talk with Banks and arrive at a figure and send you the letter on what the settlement will likely be. They will also send the same to banks and ask them to settle the account.

However, you seem to be a MAN in Hurry, so your next action is upto you now.

[ashishthakur78]

Sorry, I was not in hurry. I'll wait for BSBCI letter and then will come back to you.


Thanks


Ashish

[ashishthakur78]

Dear Card Bhai,

This is the mail I received from BSBCI.

Refer your email dated April 6, 2010 regarding your credit card dues to 5 banks.  Credit card facility is a very expensive method of availing finance from banks as interest charged on the overdues are very high, as high as 40-45 per cent per annum.  You are advised to go in for one time settlement with all these 5 banks to overcome the present burden by borrowing funds from friends and relatives for the present.  Alternatively negotiate with banks for conversion of credit card dues into personal loans with lesser rate of interest and easy repayment terms.  Pursue your personal efforts further with all the 5 banks.  Keep direct contact with the banks and avoid any OTS proposals with Recovery Agents.  Report the results of your efforts as indicated above to us.


As this mail shows there is no help that BSBCI can provide.

I am negotiating with citibank for settlement in 20% of the total outstanding but they are not willing to come lower than 26%. But I think they will agree to that.

Have setteled with Barcklay bank for 35% of total outstanding.

Waiting for HSBC to provide their settlement offer.

Will give details in this forum if any thing finalizes. But my experience is that it is better to negotiate with banks directly rather than dealing with recovery agents who promise to give u attractive waiver (agents in city bank gave me waiver of 60% on my total dues but when i started dealing with citibank they gave me waiver of 75% but I am keen in getting waiver of 80%).

Cheers,


Ashish

[cardbhai]

Ashish:

Thanks for the patient wait. So BSBCI asked to convert them into Personal Loans. There could be a hidden message here - See immediately, you can settle the CC amount with Full and Final settlement. But the pain is not over yet, they report to CIBIL as Written OFF while closing the account. This will affect your credit History.

However, I am not completely sure what will the banks report to CIBIL / Credit Bureau when the converted loan [from CC to Personal Loan] is closed. Since you are paying in full, they should not report it as WRITTEN OFF.

Also you are a smart guy, I advise you to negotiate with banks such that you avoid the Written OFF on your history.

Additionally, if you want you can file an RTI with RBI to know under this circumstance, what does the RBI rule book tells the Banks to report to CIBIL or other credit rating agencies 1. When Settled and 2. When converted to Personal Loan

Details on Filing the RTI to RBI

To,
Central Public Information Officer
Shri V.S.Das
Executive Director
Reserve Bank of India
Central Office Building, 17th Floor
Shahid Bhagat Singh Road
Mumbai – 400 001

Subject:  <<Write the Subject>


Dear Sir,

Kindly provide me with the following information requested under the purview of the Right to Information Act, 2005.

<<Your Question >>>

Find the application fee for the request attached with this application (Postal Order No _________ dated ________ is enclosed). If you feel that above requested information does not pertain to your department then please follow the provisions of Section 6(3) of the RTI Act, 2005/Also as per the provisions of the RTI Act, 2005 please provide the details (Name and Designation) of the first appellate authority with .respect to your department with the reply to the above request., where I may if required file my first appeal.

I do hereby declare that I am a citizen of India. Kindly provide me with the information at the address / email id mentioned with the application. I request you to ensure that the information is provided before the expiry of the 30-day period after you have received the application.


Thanking You.

Sincerely,

Name & signature

Applicant Address <<You Postal Address>>

[ashishthakur78]

Dear Cardbhai,


Thanks for your reply. But the BSBCI havent directed banks to convert my CC dues to personal loan. It has advised me to ask banks if they can convert the dues to personal loan. I think One Time Settlement will be a better option as Converting Credit Card Dues to personal loan for a maximum period of 36 months as banks dont convert cc dues to personal loan for more than 36 or 24 months. 

I'll be applying for my cibil ratings in a day or two and w'll mail you the details once i receive that. I have done settlement with barcklay Card few months back it should show in my cibil score as they have given me waiver of 50% on my total outstanding rest 50% should show as written off in my cibil.


Regards,


Ashish

[ashishthakur78]

Dear Card Bhai,


I managed to get my HSBC card settled for an amount of Rs.16000/- in four monthly installments against my outstanding of Rs.41795/-. I'm in also talking with citibank for settling the dues and I think that in a month or so would be able to do so. Do you think that I got a good waiver or I paid more?


W'll update u developments.


Regards,


Ashish

[cardbhai]

Good that you got settlement. Now the next thing will be to negotiate for CLEAN CREDIT REPORTING by HSBC to CIBIL. If HSBC reports the A/C as written off, then again it will be a problem.

Meanwhile I have received reply for my RTI and they have simply pointed me to the http://finmin.nic.in/the_ministry/dept_fin_services/banking/CIBIL_final.pdf document. I am going to study that and post my opinion.

Best

[divye_gold]

can i settle my cc/od limit with bob of 34 l against collataral of property worth 70 laks after selling it off and if i can ask for waving off the interest part of it. the acount is not operational since last 5-6 months but though i deposited rs. 4 laks in march 10 when bank send me letter to go in for sarfesi act. pls advise

[ashishthakur78]

Again in reference to my citibank card total outstanding of Rs.97,000 against principle of Rs.67000 I was able to settle the same for 20000. HSBC card is cleared and this month CITIBank card will be cleared. I dont require any further loan and have a better options to get loan against my Fixed Deposits. My advice to all Use credit responsibly, never use credit for share trading (my experience) and while negotiating deal directly with bank rather than collection agencies. Avoid going in for settlement if your due is in 3-4 bucket u get better option if your amount goes in 9-10 bucket. Always keep banks customer care number handy if you face problem with collection guys. I never changed by residence number, never changed my mobile number nor changed my address. Dealing with banks depends upon your negotiating abilities.

[Nisha]

Hi ashish i am also in the process of settling my credit card account with HSBC. Can you tell me what letter you got after making payment and if you got it done from collection agents or from bank. My credit limit was 30k but with interest etc it shows 2 lakhs in the cibil report. I m supposed to pay them by 10th of this month. Also i m paying more coz they called up my company HR and also my branch with treatening calls. I need to clsoe this somewhere also improve my cibil score hence pls advise

[ashishthakur78]

I went for  settlement directly with Bank and collected my settlement letter from their collection agency. Just study your settlement letter carefully. They will report your matter to cibil and for an outstanding of Rs.2 lacs just get some help with some credit counsellor they will charge you some amount but will get your case clear. If they are giving you settlement letter then go for it and if they promise you that they will get the settlement letter after 2-3 days dont give them any money. If they give you settlement letter make payment by cheque and call banks customer care and give your credit card reference and ask if there is any settlement letter issued to you against your card. If they say that there no such letter stop payment the cheque and report the issue to bank by writing, by email and by telecalling. I was shown such fradualent  letter by collection agency of HSBC but when i enquired with hsbc customer care there was no such settlement.

For harrassment and threating complain about them to the Manager grievances, HSBC by writing, emailing and telecalling. They cant call your office staff and discuss your credit card outstandings.

If possible and if you have some contacts in local police station give some cop 500-1000 rs. and get and Adamchak (dont know what they call your side) it is like your file a report with police but it is not like FIR police call both parties and matter gets settled.

[Nisha]

thansk ashish.. i did speak to their nodal officer and confirmed abt the settlement offer. They said it has been issued for 17500 and that they will issue me a no dues letter. But then they said the cibil report will say post written off settled. Will this effect my credit in the future.
i m alot confused. Whre will i get a credit counsellor