VN Kulkarni, chief counsellor, Abhay Credit Counselling Centre Guides in matters relating to banking and finance.
Last month, I had applied for an education loan with a private bank. My application was turned down citing ‘unfavourable’ credit history. I found out that this was due to a disputed credit card transaction with another bank, for which I paid a part of the amount under a compromise settlement with the bank nearly seven months ago. What is the recourse available? M Sandeep
It is clear from what you have stated that you have paid the credit card dues through settlement. This means that you are no longer a defaulter. You need to check with CIBIL whether your credit report has been updated by your credit card issuer or not.
If not, you may take up the matter with a credit card issuer, if need be by quoting the relevant paragraph from the code of commitment to customers, according to which the credit card issuer/banker is supposed to update the records maintained by the credit bureau.
The relevant code reads as under: “If your loan account has been in default, and thereafter regularised, we will take steps to update this information with the CRA (credit reference agency) in the next monthly report.”
You may also bring this to the notice of the banker who is to grant the education loan stating that the disputed matter now stands settled. If need be, you may furnish a copy of the letter issued by credit card issuer who must have stated that the amount to be paid by you is towards full and final settlement of the amount due to them.
I have switched jobs twice in the last three years and hence, have three salary accounts with three banks. Of these, I don’t use two, but I haven’t closed these accounts yet. There is no balance in these accounts. Should I close the accounts? What are the implications of not doing so? Prasad Batra
Since you are not operating the other two accounts, it is better to close them. Else, you may end up paying certain charges unnecessarily.
Although salary accounts are generally zero-balance accounts, if the bank comes to know that you are no longer an employee of the company, your account could be converted into a usual savings account and applicable charges will be automatically debited.
Here are a few examples of charges being levied by some banks: Charges for non-maintenance of minimum quarterly average balance; cash transactions at branch in the event of non-maintenance of QAB-nil for the first specified number of transactions per quarter and thereafter, and penal charges per transaction; cheque books in the event of non-maintenance of QAB-specified amount per cheque leaf and debit card fees for the first account holder as well as joint account holder separately as specified by the bank per annum.
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ReplyDeleteMy application was rejected. Credit Sudhaar was my choice. Initially they were slow. But their counsellors were able to handle all my queries. I will give Credit Sudhaar a positive review.
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