Questions & Answers
Settlement with the bank and default in payment
Hi,
I have 3 credit cards with a total limit of AED 23100. Last year, because of some issues at the job, I wasn't able to manage properly.
I applied for a settlement option and they asked for an amount of AED 23500 with 6 instalments. I managed my four instalments in proper time.
But after that, I wasn't able to manage the payments. Now, they're asking for the entire money with interest.
Please advise about the solution to solve this.
Dear Sir/ Madam,
Thank you for getting in touch with me on this.
Please tell me if you had entered into any settlement agreement with the bank? If yes, then I will need to have a look at it.
Either way, the bank has the right to call its loan amount at any time if this is mentioned in the loan agreement/credit facility document. You will need to go through the document or send it to me to have a look at it.
I would like to shed some light over the consequences if you default in making the payment as demanded by the bank:
- The bank will deposit your cheque and most probably it will bounce
-The bank will thereafter open a criminal case against you for cheque bounce
- You will be given a fine of 10-15% of the cheque amount and your criminal liability will be over
- The bank will have to file a civil case to recover the money under the credit facility provided.
Please send me the documents on hari@alnassaradvocates.com and we can have a short discussion over the phone on 052-9495731.
Regards,
Hari Wadhwana
