Federal Bank Credit Card Settlement: Understanding Your Rights
Are you being harassed by recovery agents over unpaid Federal Bank credit card dues? If you’re struggling with repayment, credit card settlement can help you resolve your debt legally and stop collection calls.
This guide explains how settlement works, your legal rights, and how to stop harassment from banks and recovery agents.
What is Credit Card Settlement?
Credit card settlement allows you to negotiate with the bank and pay a reduced amount instead of your total outstanding balance.
For example, if you owe ₹2,00,000, Federal Bank may agree to settle the debt for ₹1,20,000, depending on your financial situation.
🔹 Pros of Settlement:
✅ Reduces your total outstanding dues
✅ Stops collection calls and harassment
✅ Helps avoid legal action from the bank
🔹 Cons of Settlement:
❌ Can negatively impact your CIBIL score
❌ Requires strong negotiation skills
❌ Some banks may initially refuse settlement
Are You Facing Harassment from Recovery Agents? Know Your Rights!
1️⃣ Banks Cannot Harass You with Excessive Calls
- As per RBI Guidelines, banks cannot call you at odd hours (before 7 AM or after 7 PM).
- You have the right to ask them to stop calling you.
2️⃣ Recovery Agents Cannot Threaten or Abuse You
- Agents cannot use abusive language, threaten legal action, or visit your home/workplace repeatedly.
- If they harass you, file a complaint with the RBI or local police.
3️⃣ You Can Request a Written Notice
- Banks must send you a formal notice before initiating legal action.
- Do not make payments without a written settlement agreement.
4️⃣ You Can Settle Your Debt Legally
- You have the right to negotiate a fair settlement without facing threats.
- Always request a No Objection Certificate (NOC) after settlement.
Federal Bank Credit Card Settlement Options
Federal Bank offers different ways to settle your credit card dues:
1. One-Time Settlement (OTS)
- Pay a reduced lump sum amount instead of the full balance.
- Stops collection calls and prevents legal action.
2. EMI-Based Settlement
- Convert your outstanding amount into easy installments.
- Suitable if you cannot make a lump sum payment.
3. Waiver of Interest & Penalties
- Request a waiver on late fees, penalties, and high-interest charges.
4. Legal Settlement via NOC
- Once settled, the bank issues a No Objection Certificate (NOC) confirming that the debt is cleared.
How to Stop Harassment and Negotiate a Fair Settlement
🔹 Step 1: Contact Federal Bank’s Customer Care
- Request to discuss your financial situation and ask about settlement options.
🔹 Step 2: Demand a Written Offer
- Do not agree to any verbal promises. Get everything in writing before making payments.
🔹 Step 3: Negotiate the Best Deal
- Request a waiver on penalties and interest to reduce your total dues.
- Ensure that the bank updates your CIBIL report properly after settlement.
🔹 Step 4: Stop Harassment from Recovery Agents
- If you are being harassed, send a formal complaint to the RBI and police.
- Contact legal experts if harassment continues.
How Bank Harassment Can Help You?
✔ Legal Protection: We help you file complaints against abusive bank agents.
✔ Debt Negotiation Support: Get expert help in reducing your debt legally.
✔ No More Harassment: We take legal action to stop collection calls.
✔ CIBIL Score Assistance: Advice on improving your credit score after settlement.
Facing Harassment from Federal Bank? Let’s Take Action!
📞 Call Us: 1800-309-1902
📧 Email: info@bankharassment.com
