He said that he closed it by just paying 15000 by not paying for a long time, after some time the bank understood that he's not gonna pay that. so they offered a deal of 15000 rs to close the full loan. this is what he said, I don't know is it possible or not. what you think guys. even his credit score came back to normal after some time. what's your opinion?
My friend had 100000 credit card loan and closed by paying just 15000, is it possible?
byu/safikpm inCreditCards
Posted by safikpm
4 Comments
Your friend does not understand how credit works and that they will have a derogatory mark on their report for years to come.
> even his credit score came back to normal after some time
Yeah, but “some time” is in a timespan of years.
> I don’t know is it possible or not.
It is possible. But other issuers will simply sell the debt to someone else.
It is possible. Sometimes creditors offer settlements like that. Or they sell the debt to collections. But what he doesn’t understand evidently is that his report is cooked for a good few years.
I’m not familiar with the exact credit reporting rules in India, but I can tell you in the US your friend would have destroyed their credit for 7 years, and probably been blacklisted by that bank for longer. They also would have been risking a lawsuit this entire time and essentially gotten lucky the bank agreed to settle for so low.