Credit Card Settlement-New Norms On Anvil By RBI

March 7, 2010 - PRLog -- There is finally a ray of hope for the countless and  hapless credit card users
who were so far being held to ransom by Credit card providing banks even on final
settlement of dues by forwarding their names to Cibil,as still owing dues to the
banks.

The Reserve Bank of India is very soon coming out with new guidelines which will
disallow any bank to treat a customer as a defaulter if they have negotiated the
amount payable against his account and paid the amount to the banks providing such
credit cards.Currently even after the customer has paid the negotiated amount as offered by the
bank, their names continue to be forwarded to Cibil-Credit Information Bureau Of
India Limited, the central repository of all consumers credit history accross all
banks formed in Jan 2001.

As a result of being treated as a defaulter the customer is not able to avail of any
loans like personal loan,business loan,loan against property or home loan from any banks as the credit rating maintained
by Cibil takes a freefall downward. Being cornered and without anyhopes of
acquiring such loans from any banks the customer had to settle any dues as claimed
and raised by the banks being the balance amount of the earlier settled amount plus
penalties and interest due till date.

Mr.Arun Thukral, M D Cibil confirmed the current practice  after a series of meetings
with RBI, banks and Cibil. At present whenever dues are settled with a bank the
balance is usually treated as amount written off. In many cases banks raise bills for
very small amount balance including annual fees after settlement which should not
have been charged at all in the first place.

Though the RBI is taking a very serious note of the matter and will declare
fresh guidelines to address the current ailment in due course countless affected
customers await with bated breath of the succor to be provided by the Apex Bank
of India.

The author Subhrajeet Talukdar is the founder of Apex Finance & Marketing in Mumbai in
April 2006 and the promoter of Eazeeloans.com a premier loan advisory portal.

http://www.eazeeloans.com
http://www.easyloans.blogspot.com

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