SOURAV MONDAL
4 years ago
I am unable to pay off my debts as financial status gotten worst. I have paid several bills for card issuing companies. But they are issuing high interest rates that I can't afford at this stage. I am about to die. I can not afford high fees for legal consultation.Please help me out.
Shreyash Mohta
Responded 4 years ago
A.Inform your creditors of such financial condition and try negotiating a settlement.
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Mohammed Raisuddin Anwar
Responded 4 years ago
A.Wait for their legal notice
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A.Hi client,
The only situation left is a settlement between the bank and you. Go for it. Tell then the details of your current situation. Either ask for sometime or just go for paying only the principal amount .
Thank you
The only situation left is a settlement between the bank and you. Go for it. Tell then the details of your current situation. Either ask for sometime or just go for paying only the principal amount .
Thank you
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Devashish Wani
Responded 4 years ago
A.Dear Client, as per the recent information provided by the RBI Governor, in order to tackle the ongoing COVID-19 pandemic, moratorium has been declared for a period of 3 months from today on all loans. So everyone has been granted a breathing/cushion period. In the meanwhile, once everything resumes back to normal, you may contact the higher authorities for debt restructuring or for providing an One Time Settlement Scheme which would be pivotal for both parties. No need to garner any negative thoughts, just think about it and act accordingly!
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A.Dear Si
You should not become panic. It is civil liability and they cannot sit on your neck because it is unsecured loan and they have to face the music. Please rely upon the following judgments.
ICCI Bank Limited vs. Prakash Kaur case,
The Supreme Court in a landmark judgement reiterated its earlier stand that banks cannot deploy musclemen for recovery of loans from defaulters thus forcing them to end their lives.
"We deem it appropriate to remind the banks and other financial institutions that we live in a civilised country and are governed by the rule of law," a bench comprising Justices Tarun Chatterjee and Dalveer Bhandari said.
The court while dismissing the ICICI Bank's plea refused to delete the Delhi High Court's remarks that held the bank and its musclemen responsible for abetting a youth to commit suicide by humiliating him and taking away his motorcycle financed by the largest private sector bank.
It also asked the ICICI Bank to to pay Rs 25,000 as cost of this litigation to the respondents within three weeks and directed the Delhi Police to conclude the investigation against the bank expeditiously within three months, keeping in view the gravity of the allegations.
The court also directed the concerned Deputy Commissioner of Police to submit the investigation report in the Delhi High Court.
According to the court, complaints received by Reserve Bank regarding violation of the above guidelines and adoption of abusive practices followed by banks recovery agents would be viewed seriously.
Reiterating the RBI Guidelines on Engagement of Recovery Agents, the court said, "The Reserve Bank may consider imposing a ban on a bank from engaging recovery agents in a particular area, either jurisdictional or functional, for a limited period. In case of persistent breach of above guidelines, Reserve Bank may consider extending the period of ban or the area of ban."
"RBI had expressed its concern about the number of litigations filed against the banks in the recent past for engaging recovery agents who have purportedly violated the law," Justice Bhandari, writing the verdict for the bench, stated.
RBI in a letter accompanying its April 24, 2008 Guidelines had stated that it might consider imposing a ban on a bank from engaging recovery agents in a particular area, either jurisdictional or functional, for a limited period.
ICICI Bank had moved the apex court seeking deletion of some paragraphs in the High Court order which had said that "...the proximate cause of death of the deceased that led him to commit suicide was on account of humiliation caused by the Bank people from where loan was taken by him."
"The modus-operandi employed by the banks like ICICI for realisation of their loan amount and for recovering the possession of the vehicle against which loans are given is extra legal and by no stretch of imagination they can be permitted to employ musclemen and goons for recovery of their dues even from a defaulting party," the High Court had observed.
The High Court order had come on a petition filed by Shanti Devi Sharma, the deceased's mother, seeking a probe against the ICICI bank and its staff for the unlawful action, which led to the suicide of her 34-year old son Himanshu Dev Sharma.
Sharma had committed suicide in October 2005 by hanging himself at his house after he was allegedly intimidated and humiliated in front of his neighbours and family by recovery agents employed by the bank for recovering the loan amount taken for his motorcycle.
The ICICI Bank had contended that it was within its rights to recover loans and had followed the required procedure for recovering dues.
You should not become panic. It is civil liability and they cannot sit on your neck because it is unsecured loan and they have to face the music. Please rely upon the following judgments.
ICCI Bank Limited vs. Prakash Kaur case,
The Supreme Court in a landmark judgement reiterated its earlier stand that banks cannot deploy musclemen for recovery of loans from defaulters thus forcing them to end their lives.
"We deem it appropriate to remind the banks and other financial institutions that we live in a civilised country and are governed by the rule of law," a bench comprising Justices Tarun Chatterjee and Dalveer Bhandari said.
The court while dismissing the ICICI Bank's plea refused to delete the Delhi High Court's remarks that held the bank and its musclemen responsible for abetting a youth to commit suicide by humiliating him and taking away his motorcycle financed by the largest private sector bank.
It also asked the ICICI Bank to to pay Rs 25,000 as cost of this litigation to the respondents within three weeks and directed the Delhi Police to conclude the investigation against the bank expeditiously within three months, keeping in view the gravity of the allegations.
The court also directed the concerned Deputy Commissioner of Police to submit the investigation report in the Delhi High Court.
According to the court, complaints received by Reserve Bank regarding violation of the above guidelines and adoption of abusive practices followed by banks recovery agents would be viewed seriously.
Reiterating the RBI Guidelines on Engagement of Recovery Agents, the court said, "The Reserve Bank may consider imposing a ban on a bank from engaging recovery agents in a particular area, either jurisdictional or functional, for a limited period. In case of persistent breach of above guidelines, Reserve Bank may consider extending the period of ban or the area of ban."
"RBI had expressed its concern about the number of litigations filed against the banks in the recent past for engaging recovery agents who have purportedly violated the law," Justice Bhandari, writing the verdict for the bench, stated.
RBI in a letter accompanying its April 24, 2008 Guidelines had stated that it might consider imposing a ban on a bank from engaging recovery agents in a particular area, either jurisdictional or functional, for a limited period.
ICICI Bank had moved the apex court seeking deletion of some paragraphs in the High Court order which had said that "...the proximate cause of death of the deceased that led him to commit suicide was on account of humiliation caused by the Bank people from where loan was taken by him."
"The modus-operandi employed by the banks like ICICI for realisation of their loan amount and for recovering the possession of the vehicle against which loans are given is extra legal and by no stretch of imagination they can be permitted to employ musclemen and goons for recovery of their dues even from a defaulting party," the High Court had observed.
The High Court order had come on a petition filed by Shanti Devi Sharma, the deceased's mother, seeking a probe against the ICICI bank and its staff for the unlawful action, which led to the suicide of her 34-year old son Himanshu Dev Sharma.
Sharma had committed suicide in October 2005 by hanging himself at his house after he was allegedly intimidated and humiliated in front of his neighbours and family by recovery agents employed by the bank for recovering the loan amount taken for his motorcycle.
The ICICI Bank had contended that it was within its rights to recover loans and had followed the required procedure for recovering dues.
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A.Hi Client,
Two actions you need to take as below:
1. Contact your creditors ASAP and let them know about your financial shortfall.
2. Check for debt consolidation.
Two actions you need to take as below:
1. Contact your creditors ASAP and let them know about your financial shortfall.
2. Check for debt consolidation.
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A.You can opt for a personal loan in order to clear your credit card debt it is widely known as Refinancing Credit Card Debt with Personal Loan.
Now you may wonder why shall you take a personal loan as it will also attract an interest over the loan.
Now the catch here is most of the credit card charges a whopping per annum interest rate over the principal amount which in certain cases goes up to 40% p.a. while a personal loan will attract an interest of 10-15% p.a. interest.
There are other options available where you can seek the help of your bank in order to negotiate the debt for you. If you are lucky enough and your bank agrees to negotiate, you will only have to pay the principal amount of the debt.
Thank You.
Now you may wonder why shall you take a personal loan as it will also attract an interest over the loan.
Now the catch here is most of the credit card charges a whopping per annum interest rate over the principal amount which in certain cases goes up to 40% p.a. while a personal loan will attract an interest of 10-15% p.a. interest.
There are other options available where you can seek the help of your bank in order to negotiate the debt for you. If you are lucky enough and your bank agrees to negotiate, you will only have to pay the principal amount of the debt.
Thank You.
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