I have been using credit cards and paying off the amounts before the due date. However, due to some financial issues or business losses, I have been unable to pay off the amounts for the last 2 to 3 months. I belong to a middle-class family. Currently, I am not able to pay any amount towards the EMIs. I have been searching on Google and found some articles regarding OTS (one time sattelement) RBI guidelines. Could anyone please help me understand the process of OTS (one time sattelement) according to RBI guidelines? I need to pay off the OTS (one time sattelement) amount in a single installment over 3 to 4 months without any trouble. The credit card third-party recovery agents are not understanding my situation; they are only resorting to harassment. Right now, I am jobless and helpless. What should I do?
Credit card ots (one time sattelement) rbi guidelines
- Thread starter ravindra
- Start date
zacobite
KF Mentor
first start paying min due amount.. then reach out to bank directly and try to settle.. if u can't pay min due then hw will u pay settlement amount?.. pay min due.. recovery agents will stop.. then negotiate with bank..
If you are holding another credit cards. You can avail balance transfer option and pay the whole amount. Although you have to pay charges to avail the facility but yes no need to bother about the penalty.
zacobite
KF Mentor
talk to bank collx dept or recovery agency..
zacobite
KF Mentor
ots is not a right.. bank discretion is required.. they won't give you any option if u don't pay something upfront.. try to make min due payment and then negotiate
zacobite
KF Mentor
then also spk to bank... no other option
zacobite
KF Mentor
GO TO THE BANK IN PERSON and NEGOTIATE THE OTS.. COLLECTION DEPT.
Google for ots.. cannot send links here
zacobite
KF Mentor
In cases where the borrowers are unable to pay the entire amount in one lump sum, at least 25% of the amount of settlement shall be paid upfront and the balance amount of 75% should be recovered in instalments within a period of one year together with interest at the existing Prime Lending Rate
YOU HAVE TO PAY SOMETHING UPFRONT FOR OTS.. GO TO THE BANK
Ganesh_Shinde
KF Ace
I understand this is a stressful situation. Here's what you can do regarding OTS (One-Time Settlement) and dealing with the credit card situation:
About OTS under RBI Guidelines:
While RBI provides a framework for One-Time Settlement (OTS) for loans, it's crucial to understand that:
About OTS under RBI Guidelines:
While RBI provides a framework for One-Time Settlement (OTS) for loans, it's crucial to understand that:
- Banks have the discretion to decide OTS for credit cards.
- There are no specific RBI guidelines mandating banks to offer OTS or a fixed settlement amount.
- Contact Your Bank Directly: Collection agents are usually third-party agencies hired by the bank. Try contacting the bank's customer care department and explain your situation. Request a hardship program or a one-time settlement option.
- Negotiate a Settlement: Since you have a good past payment history, explain your current financial situation and propose a settlement amount you can manage. Be prepared to negotiate and provide documentation supporting your financial hardship (if any).
- Payment Options: If the bank agrees to OTS, discuss a feasible payment plan. While a single installment might be difficult, explore options for spreading the settlement amount over a few months (3-4) at a minimal interest rate.
- Harassment by Recovery Agents: If the agents resort to harassment, inform the bank immediately. RBI regulations prohibit such practices. You can also file a complaint with RBI against the bank for agent harassment https://cms.rbi.org.in/.
- Maintain Communication: Regularly communicate your situation and repayment intentions to the bank.
- Explore Debt Consolidation: If you have multiple credit card debts, consider consolidating them into a lower-interest loan to simplify repayments.
- OTS might affect your credit score for a few years.
- Make sure you settle the agreed-upon amount within the stipulated timeframe.
- You can seek free credit counseling from agencies like CreditVidya or Credit Counselling Foundation to help negotiate with the bank and understand your options better.
hoodedRobin
KF Ace
Hope things get better.
guptajoy961
KF Expert
Hey there! So, you're diving into the world of One-Time Settlements (OTS) and navigating those RBI guidelines. Let's break it down together:
1. **Get to Know the OTS Guidelines:** The RBI has laid out some ground rules for banks to set up their own OTS policies. It's all about getting back as much as possible while keeping costs low, with a fair and square approach.
2. **Reach Out to Your Bank:** Don't be shy! Pick up the phone or pop into your bank to have a chat. Explain your financial situation and why you're struggling to pay off your dues. Ask them nicely to consider an OTS deal based on what they've got in their rulebook.
3. **Haggle Over the Terms:** This is where the negotiation dance begins. Your bank will likely look at things like what they could get from any collateral you've put up, how you're doing money-wise right now, and how long your dues have been sitting there. They might throw out a figure, maybe 10-20% upfront with the rest spread out over several months.
4. **Seal the Deal:** Once you've agreed on terms, it's time for the bank to dot their i's and cross their t's. They'll need the green light from the right people in the bank's hierarchy. Once that's sorted, stick to your end of the bargain like glue to avoid any more headaches.
5. **Keep the Wolves at Bay:** If those pesky recovery agents keep buzzing around, let them know you're in talks with the bank about an OTS. If they don't take the hint, you've got backup. You can lodge a complaint with the banking ombudsman or the RBI consumer grievance cell.
Remember, every bank has its own way of doing things, so your mileage may vary. Stay on the ball, keep the communication lines open, and aim for a settlement that's doable for you. It might take some time and patience, but you'll get there!
