Recovery agent cannot settle dues on bank’s behalf

I have written several letters to the collection agency to know about the settlement of my credit card dues. Can the agency give me valid discharge or can it settle the dues on the bank’s behalf?           
— Champak
A recovery agent is not authorised to settle the dues. It is the banker who only has authority to indicate it, and unless until you receive a duly signed letter on bank’s letter head you should not accept the offer. There are many recovery agents who play this game stating that they will get the letter after you pay a certain sum, etc. Please ask for a settlement letter and if it is acceptable to you then go ahead. You should also take into consideration that if you go for a settlement offer, your credit report and consequently the credit score will have an adverse impact and it may be difficult to get a loan at a later stage.

I have a Corporation Bank credit card and I missed a couple of payments in February and March 2010. But I repaid the full amount in April 2010. Since then it is showing as March overdue in the Cibil report. I called the bank many times but they are saying the
—  Mallikarjuna
I trust you have sent a letter asking the bank to update the records soon after you paid entire dues. As per para 5.1d of Code of Banks’ commitment to customers, the banks are supposed to update the information in the next monthly report. In your case the bank should have updated the records in April 2010.

Please write to the nodal officer of the bank with a copy to the customer service department of the Reserve Bank of India pointing out the deficiency in service of the bank. If you do not get a response or the response is not satisfactory within 30 days, you may file a complaint with the banking ombudsman.

I am one of the victims of a ‘wrong’ Cibil report. Please let me know the details and I would also like to know your consultancy charges.
— B V Ravindra
At Abhay Credit Counselling Centre we do not charge any fees for the advice given by counsellors. It is a free service to the society by Bank of India under its corporate social responsibility activities. Clients of any bank can approach our centres. For address, timings etc, please visit our website www.abhaycreditcounselling.com. Coming to your point about wrong reporting you can take up the matter with Cibil as well. Please visit Cibil website and follow the dispute resolution process. The credit bureau will seek confirmation from your bankers and then make changes. Alternatively, take up the matter directly with your banker, point out the deficiencies and get a confirmation stating that the credit report has been
corrected.

I have four personal loans running. Can I combine these loans into one to get the benefit of lower EMI? My total outstanding is Rs 4,50,000. The present EMI is Rs 32,000. Please advise.
— Sanjay
If it is from the same bank perhaps your banker may agree to consolidate the loans and if there is any specific reason the bank may even extend the period so that your burden of EMI can be reduced. If you have availed the loan from different banks and want one of your bankers to take over and consolidate then it may be difficult. Interest rates on personal loan are quite high and as such EMI also will be high. Why not consider the possibilities of swapping these high cost debt with a low cost one, say loan against your provident fund if it is possible, loan from employee co-operative credit society or loan against some securities, etc. This will bring down your EMI substantially.

— The writer is chief counsellor, Abhay Credit Counselling, a trust sponsored by Bank of India. He can be reached at dnadebtqueries@gmail.com