Loan Repayment Default

[sverma1231]

Dear Cardbhai,
Due to reasons not worth reiterating here I defaulted on payments of 3 loans:
•   Citi bank credit Card – Outstanding now is Rs 1.5 lacs. (Actual usage was 25000/-)
•   ICICI Bank – Loan Amount was Rs. 1 Lakh, 10 thousand was paid, remaining outstanding
•   ICICI Bank – Loan Amount was Rs. 50 Thousand, 35 thousand was repaid, remaining outstanding

These remaining outstanding since some time now (last payment was made in 2007, 2008).

I was in a very bad shape financially & coped up with a job loss & a job that was not well paying later but enough to keep me alive.
Now situation has improved slightly & I want to repay these loans.
How do you propose that I approach this? I would like the banks to forgo some part of interest & penal interest.

I have a take home salary of Rs. 41000/- I have an education loan emi of Rs. 8000/- per month additionally.

Is there any hope for me??

Regards,
SV

[cardbhai]

SVerma:

Nothing is Lost. Everything will be fine as you are back in Job. Just need to be little bit conservative in spending for 2 years and you will be back on Track.

First, negotiate with a BANK and try to get full and final settlement offer [ follow these steps http://credit.cardbhai.com/2009/01/credit-default-final-settlement-steps.html]

If you are satisfied with the above said negotiations, then PAY them off, if not then follow these instructions on Settlement and they will help you out
http://credit.cardbhai.com/2009/12/how-to-settle-credit-loan-defaults.html

Kindly PRESERVE all Documents and WRITTEN CORRESPONDENCE for the next 10 years.

[sverma1231]

Dear card Bhai,

Citibank has send me a settlement letter. I had negotiated hard & insisted on CIBIL updation. The letter states this about CIBIL rating:
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We also assure that your name pertaining to the above mentioned credit cards would be updated accordingly in the database shared by us with CIBIL or other databases (as applicable) on successful completion of this plan. Hence we urge you to ensure timely and successful completion of this payment plan.

Further note that all legal cases pending against this account shall be withdrwan after recieving the payment as per this Structured Payment Plan.
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Do you think this is enough & they will update my CIBIL ratings ..??

Pl advise me on how should i deal with it.

This is urgent. Pl help.
Regards,

[sverma1231]

I am thinking of sending this mail:
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Dear Sir,
I very thankfully acknowledge the receipt of your mail & settlement letter.

This seems largely in concurrence with what I have discussed with your representatives, except for the following:
 
•   On the CIBIL updation I want to once again confirm that this card account will get ”zeroised”, & records pertaining to this would be updated as  “Settled”

I will await your response before proceeding on this.
Thank you.

[cardbhai]

Well I am not sure if they can update it is as "Settled" but if left BLANK and A/C Closed means it is closed in Good Standing.

Read on what are valid fields http://www.dalalstreet.biz/forum/india-credit-cards/settlement-of-icici-credit-card/msg410/#msg410

Best