Here is how you have to deal with it. When you have queries on credit
card defaults and delayed payments which has taken the payment
obligation of the banker to few Lakh rupees.
Talk to the bank who issued the card and tell them you would like to
settle off in good faith and ask for concession and negotiate hard, yes
put all your negotiation skills to work here.
Once you both settle on some amount these are the steps you MUST and
Should follow. It is better to negotiate with the bank itself rather
than the collection agent because Bank Pays to the Collection Agent
commission as high as 15% of the recovered amount and he will haress you
until you pay it to the bank because the agent is awaiting his
comission.
* Get a letter from the bank in which they mention "Final Settlement
of Outstanding dues" with your complete name, address and credit card
number on which you have defaulted
* Make your payment by CROSSED CHEQUE only
* As soon as the payment is done, close this credit card account by
giving writing instructions saying w.r.t Final Settlement, I have
cleared all the dues and want this account to be closed. [Keep a proof
of closing this account, say banker stamps on the second copy of the
lettr or send it by registered A.D]
* Preserve all this documentation for the next 5 years, atleast.
* Chances are the your name will be in the CIBIL defaulters list,
give time of 6 months before you apply for another loan so that the bank
clears your name off defaulters list.
* Work and Plan your finances well before you opt for any other form
of credit - card, personal Loan, auto loan etc
* Next time when you apply for any kind of credit, if your name is
still in the defaulters list, then you have every right to know on which
account you have defaulted. If this is the same as the credit card
account on which you have defaulted, then all those documents of Final
Settlement, crossed Cheque payment will come in handy here. Attach
attested photocopies and try to get your name cleared off the defaulters
list. Don't submit the originals you have.
* And finally you have to live with this painful process.
If Settlement Amount is as Large as Rs 300,000 [3 Lakh] ? Hire a lawyer
because the deal is big and in any case save all the documentation.
For More help on Credit Card Default
<http://creditcard-infoguide.blogspot.com/2009/02/credit-default-settlem\
ent-step-by-step.html> visit Creditcard-infoguide.blogspot.com
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