Axis Bank Credit Card Settlement: How to Reduce Your Outstanding Dues and Stop Harassment
Dealing with overwhelming credit card debt can be stressful, especially when bank recovery agents start using aggressive tactics. If you are struggling to repay your Axis Bank credit card dues, understanding the settlement process can help you negotiate a reduced amount and put an end to harassment from collection agencies.
This guide explains the Axis Bank credit card settlement process, how to protect yourself from harassing recovery calls, and the best steps to reduce your outstanding dues legally.
What is Credit Card Settlement?
Credit card settlement is a process where the bank agrees to accept a reduced amount as a one-time payment to close your outstanding credit card dues. This option is usually available for individuals facing genuine financial hardships such as:
- Job loss or salary reduction
- Medical emergencies or hospitalization expenses
- Business failure or financial losses
- Unmanageable debt due to high interest rates
How to Apply for Axis Bank Credit Card Settlement
If you are unable to clear your Axis Bank credit card dues in full, you can negotiate a settlement by following these steps:
- Assess Your Financial Condition: Determine how much you can afford to pay in a lump sum. Banks usually accept 40-70% of the total outstanding amount for settlement.
- Contact Axis Bank’s Collections Department: Call the Axis Bank customer care or visit the nearest branch to discuss your financial situation. Request a settlement offer instead of making small payments.
- Negotiate the Best Possible Offer: The bank may initially refuse or offer a small reduction. Be patient and negotiate for the lowest settlement amount possible.
- Get a Written Settlement Agreement: Before making any payment, ask the bank for a written settlement letter confirming that the agreed amount is full and final and that no further dues will be claimed.
- Make the Payment and Request a No-Dues Certificate: After completing the payment, ask for a No-Dues Certificate (NDC) to ensure that your account is officially closed.
How to Stop Harassment by Axis Bank Recovery Agents
Many borrowers experience excessive calls, threats, or home visits from Axis Bank’s recovery agents. If you are facing harassment, take the following steps:
- Know Your Rights: As per RBI guidelines, banks cannot harass borrowers or use threats to recover dues.
- Request Communication via Written Notice: Ask the bank to stop calling and communicate only through written notices or emails.
- File a Complaint: If harassment continues, file a complaint with Axis Bank’s grievance redressal cell or the Banking Ombudsman.
- Seek Legal Help: If you receive threats or abusive treatment, consult a lawyer to take legal action against unethical recovery practices.
Impact of Credit Card Settlement on Your Credit Score
While settlement helps reduce your financial burden, it has a negative impact on your credit score:
- The account will be marked as “settled” instead of “closed” in your credit report, which may reduce your CIBIL score.
- It can affect your ability to get future loans or credit cards.
- The impact usually lasts for 5-7 years, but timely future payments can help rebuild your credit.
Alternatives to Credit Card Settlement
If you want to avoid the negative impact of settlement, consider these alternatives:
- Convert Dues into EMIs: If your financial crisis is temporary, ask Axis Bank for an EMI conversion plan instead of settlement.
- Balance Transfer: Transfer your outstanding balance to a lower interest credit card to reduce interest rates.
- Debt Consolidation Loan: Take a personal loan at a lower interest rate to clear your credit card dues in full.
- Negotiate for Interest Waiver Instead of Settlement: Some banks allow a one-time interest waiver without marking the account as “settled.”
Final Thoughts
If you are facing financial hardship and bank harassment, settling your Axis Bank credit card dues can provide relief. However, it is crucial to negotiate smartly, get all agreements in writing, and understand the impact on your credit score before proceeding. If you are experiencing harassment from recovery agents, remember that you have legal rights, and there are proper channels to address the issue. Seeking professional help can also ensure a fair settlement and protect your financial future.
