Credit Cards Settlement of 43L from 12 Banks

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You cannot directly approach the court for settlement of credit card dues when there is no default or legal cause of action. Courts do not entertain such petitions merely for negotiation or future protection. The view that legal proceedings generally arise only after default or recovery action is initiated is legally correct. At present, you may voluntarily approach the banks for restructuring, settlement or moratorium on humanitarian grounds due to job loss. If you anticipate financial difficulty, it is advisable to formally communicate in writing and maintain records to avoid allegations of wilful default. If recovery agents harass you, you have the right to lodge complaints before the banking ombudsman, RBI, or appropriate authorities, and seek legal protection. In case any coercive or unlawful methods are used, you may also seek injunction or police protection. If defaults occur and recovery proceedings are initiated, then legal remedies such as settlement through Lok Adalat, mediation, or court-monitored compromise become available. Proper legal strategy at the right stage will help you minimise liability and protect your rights.

Advocate Pavani Kumari LawRato