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18/09/2012 – Point No 1

My viewpoint: -

Credit Card settlements / Loan settlements.

At times, the credit card customers/loan holders and the credit card issuers/ loan disbursement companies enter into an agreement to settle the credit card/loan dues. The card holder remits the due amount as per the settlements. Once the amount as per the settlement is received by the credit card issuer, the credit card issuer/loan disbursement company should not report to the credit reference agencies the card holder as an ‘overdue customer’ or ‘settled’, customer.

At present, it is observed that the credit card issuers agree for a settlement; receive the amount as per the settlement, but still report to the Credit Reference Agency as ‘overdue/settled’. This is not good customer service.

                In case it is not possible for the credit card issuers/ loan disbursement companies to provide a clean status to the Credit Reference Agencies than at the time of the settlement, au undertaking should be taken from the card holder/loan holder that it has been explained to him in detail that the information to the Credit Reference Agencies will be shown as ‘overdue/settled’, and in future it will be difficult to obtain any loan/credit card.