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Dear All,

First of all, i am sorry for asking this question as i know this is not a right place to ask for. But due to the situation i am in, i am compelled to ask.

I am a credit card holder for quite long time. My card was blocked more than a year from now & i was also not using card any more since more than one year even before my card is blocked.

The credit card company kept on sending me bills for the amount i am due for payment adding interest every month and asking me to pay my total amount due or minimum due. This is happening since my card was blocked. (I have been paying min. due every month to avoid any kind of unhappy incidents and to avoid any kind of disturbance)

Now my question is : How Can the Credit Card company send bill to me? Because, my card was blocked and i am not using card anymore. In such case how can they go on adding interest and send bills for payment and insist for payment every month?

The fact is i am not in a position to clear all the amount due immediately. I wanted to clear the entire amount due slowly. But the CR.Card company is levying interest on the total amount and sending bills every month. In such case i will never be able to clear my total amount due.

Kindly advise.



Dear Krishna T B R

That's how credit card companies earn money !!
The interest will keep on mounting at an astronomical rate (more than 3% p.m.- which comes to more than 40% per annum, when compounded every month; Also, there will be Late payment/cash payment fees, Service Tax etc. and again Interest on all these components) !!!

It is strange to find that RBI has not been able to rein in the credit card companies which charge atrocious and usurious rates of interest on the plea that these are unsecured loans.

In spite of having THE USURIOUS LOANS ACT, 1918 which prohibits excessive interest and abolition of Zamindari and Money-lenders; Government is yet to take any steps in this direction; though some thinking has started already.

All you can do under the circumstances is, negotiate with the Bank/Credit Card co. to reduce the penal interest, which can be done as a part of final settlement; if you are willing to pay in lump sum, the outstanding amount including interest.

You can take a Personal Loan from some other friendly Banks to repay the amount. The interest rate of this loan will work out to be much cheaper.

Hope the above suggestion helps you.

Do not feel sorry for asking this question. It is also the (moral) duty of HR to ensure that the employee are not chronically indebted; as it also leads to poor performance and attrition.
Warm regards.

Thank you Raj for your valuable reply.
But i doubt if any bank give me loan . Because , they will go through Credit History before sanctioning / accepting the loan application. CIBIL is the source of info. for all these people.
Let me try. Hope things will work out.
Krishna T B R

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