How to Reply to a Legal Notice For Non-Payment of Credit Card Dues

How to Reply to a Legal Notice For Non-Payment of Credit Card Dues

Have you ever received a legal notice in case you did not pay your unpaid dues? Getting a legal notice is not something that cannot be worked upon. There are various ways on how to proceed with the reply to such notice of the unpaid dues of your credit card on time. Rest assured, there is a proper legal procedure to reply to such a notice.

However, the cardholder must always remember that since a legal notice has been sent to him, it is advisable for him to send a reply. In the reply, he may state his intentions and reasons. In case, the bank does not communicate to that reply to the legal notice, it can be assumed that the bank has accepted the facts and allegations as mentioned in the legal notice. Therefore it is always beneficial in case of a cardholder to send a reply within a time specified in the legal notice. As such a reply will act as a piece of concrete evidence before the eyes of the law, that the defaulter has been responsive towards the incident.

Pondering On what is this legal notice regarding credit card?

Any bank or the financial institutions send the legal notice for a credit card when the payments are not made on time. In such a situation, an individual holding a card becomes a defaulter.

Replying to a legal notice is considered as good evidence because when a defaulter replies to a legal notice, the court presumes that the defaulter has the genuine intention of making the payments on time but due to certain reasons it was not possible for him to make it.

Any banks, be it private bank like Axis bank or Government like PNB can send a legal notice. It is basically an opportunity for a cardholder to make the payment sooner in order to avoid long legal battles.

It can be sent by registered post as well as by personally through a person and by email too.

However, WizCounsel can help you to hire a lawyer to draft your reply to the legal notice. You can also avail a consultation with the lawyer to have a clear idea regarding your rights and opportunities. Before we begin with the explanation of the process, let us first understand what is actually a credit card legal notice.

Why do banks send a legal notice for a credit card?

It is no ones choice to get involved in legal proceedings because they are so long and time-taking. So neither the banks nor the financial institutions find it as a suitable way to approach the defaulter. Rather they prefer sending a legal notice for the payment of the credit card to the defaulter. In this way they give an opportunity to the defaulter to make the payment on time and at the same time, to avoid getting involved in any such legal proceedings. To know more about the legal notice read: What to do when you get a Legal Notice

The situations for sending a legal notice can be many, some are as follows:

  1. When the cardholder has failed to pay the due amount.
  2. Has failed to pay the money for more than one occasions.
  3. When he has been warned or given an opportunity to make the payment that is due to the bank.

The banks usually send the notice being drafted after properly consulting the lawyer stating all the facts and liabilities of the defaulter. Therefore, in this way, the receiver gets an idea of the accusations that have been made against him. To assist you better, WizCounsel helps you Find a Lawyer and get a consultation regarding any legal aspect.

When does a person become a defaulter?

A person becomes a defaulter when he is not able to pay the money or clear his due amounts which means that the particular individual or the corporate entity has become financially weak in the market. The financial condition of the person or such entity is not up to the level where he is in the capacity to pay off their debts. But however, this does not always mean that the person is not willing to pay or trying to avoid the payments.

Therefore, in these kinds of situations, the banks or the financial institutions prefer to send a legal notice for the due payments and maybe later they will file a suit for the non-payment of dues. Such notices should not be taken lightly as they are the first step towards the institution of legal proceedings.

Measures being available to a defaulter

A defaulter can proceed with the following measures to avoid any kind of legal proceedings which are as follows:

  1. He can approach the bank to settle the matter out of court.
  2. The defaulter can also request the bank to give him some more time to pay off his dues.
  3. He may also clear his payments by the way of installments but that would only depend on the discretion of the bank.
  4. Or else he can instead write a reply to the legal notice that is sent to him let the bank know that he has the genuine and honest intention to clear his dues.

How to go about with the replying to legal notice against a credit card.

In order to avoid the worst scenarios, you can surely go for a one-time settlement and pay the whole amount in one go or you can discuss in terms of monthly settlements for a short period of time. In this way, usually, the banks remove the interest and charge only the principal amount that the defaulter needs to pay. There must be several points that must be kept in mind while replying to a legal notice.

  1. Name and place of residence of the defaulter.
  2. Details of the cause of action
  3. The monetary relief that is claimed by the defaulter.
  4. The summary of the legal basis for claiming the relief.

Where can you find a good lawyer?

With the help of WizCounsel, you get intermittent access to find lawyers in India, who are expert in sending a legal notice.

WizCounsel helps you find and hire a Lawyer you can trust, within your budget. We assign a Legal Expert who understands your legal case in detail and then helps you hire the right Lawyer according to your legal issues and budget. With WizCounsel’s human support and technology you can track your legal case, timeline, deadlines, share and store documents and make payments in installments.

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