Questions & Answers
Civil case for defaulting on the outstanding payments of credit card
Dear Sir,
Good day.
I had a credit card with a bank in the past in 2016 and my credit limit was AED 7500. I lost my job so I was not able to pay this amount at that time.
The bank filed a criminal case against me and I went to jail for one month in 2016. Now, the bank called me again and asked about the payment, but I'm still not able to pay.
The recovery agent told me they are filing a civil case against me and they're asking me to pay AED 29000.
How is it possible as my card limit is 7500 only and that time the bank filed a case against me for AED 10000?
What should I do in this case?
Please assist me
Dear Sir/ Madam,
Thank you for getting in touch with me on this.
I understand your position and completely sympathise with you.
On the question as to how the outstanding amount is AED 29,000 when your credit limit was only 7,500/-, the bank must be charging a penalty, late fee payments and miscellaneous hidden interests on your card and hence the outstanding has escalated.
I would suggest that you close the matter by paying the outstanding amount. You can negotiate and get a discount on the payment too. For such a small amount they may not file a civil case but it's possible in theory.
You can take assistance in negotiating with the bank and closing the case.
I trust you will find this helpful.
Regards,
Hari Wadhwana
