HDFC Moneyback Credit Card disabled by them

[sxchzy]

ki

No Sir. I can't repeat myself in other ways. My understanding is clear. Credit card dues cannot be thrown to the relatives until he/she is the co-owner.
Credit cards are issued for personal usage.
Similarly to this, any personal loan cannot be passed to relatives.

ndly have a look at the ss i have sent
in this case we do not know whether bank has made his father an npa
but bank can legally recover any oustanding through direct descendants

 

[COSMOCRAT]

what is the legal standing point here?
can debt be recovered from family members or not?

Depends. That is how secured and unsecured loan types come into play.

Secured loans like mortgages and FD-backed cards, can be recovered by family members since they are the next legal heirs of the same or there is a guarantor. And in the case of FD cards, you are using the limit amount in relation to the FD, which will be ceased and recovered.

Credit score + income criteria loans and credit cards come under unsecured loans. And the reason banks give unsecured loans is because they have higher interest rates, making them risky yet lucrative. Recovery can be done in the loan taker's name only that too he can refuse and show the middle finger(will come with future problem though). But their family members are not at all liable to pay.

That doesn't mean banks won't try underhand tactics to recover the amount from family members using their lack of knowledge, pressure by constant calls, guilt shaming, and emotional drama. But the family has the full right to refuse to pay the amount as it's not directly in their name. But the downside is, you will face problems getting a loan or CC in the future. Since banks have all rights to do risk analysis and when they find that one of your close family members(father, mother, or spouse) is a defaulter and hasn't paid they will also see you as a liability too, to give out a fresh loan (Basically, what to confirm you won't do the same, even if current CIBIL is good).

https://m.economictimes.com/wealth/...nt-after-their-death/articleshow/92095631.cms

 

[sxchzy]

What is a Nominee for a loan (a liability)?! Do you mean a Guarantor?

maybe

 

[AritraSaha]

doesnt matter as if there is any outstanding which creates a liability it also gets inherited
they cant reduce ops cibil because of non re-payment of his fathers dues,but definately can recover money from op

His father is alive, then how can he inherited?

 

[sxchzy]

does anyone have rbi master guidelines for this topic

 

[sxchzy]

be

His father is alive, then how can he inherited?

cause his father maybe considered an npa.
and the bank may consider this that the father may try to default again by taking money in his sons name

 

[Bugs Bunny]

ye

s
i agree with you
logically it makes sense to recover debt from children
because it goes without saying the child inherits the parents assets and liabilities all included

Naah it doesn't work this way. It is the assets that gets passed along with liabilities attached to the assets, no one can demand unsecured loans from the child if the parent defaults.

 

[sxchzy]

getting mixed answers from websites as well

 

[Bugs Bunny]

This is how HDFC works.

My Friend's Parents also did not paid Car Loan Last Few EMIs.

Those Bast**ds deducted that Unpaid Amount from my freinds Bank Account when He opend a New HDFC Bank Account.

Upon asking why they deducted, HDFC Employee told that My Freind Name was added as Nominee in Car Loan, hence they Recovered the Amount.

Further nominees are custodian of money, ie they will recieve the money and money can't be taken from them unless they are guarantors too

 

[VISHESH_BANSAL]

What is a Nominee for a loan (a liability)?! Do you mean a Guarantor?

Do not know.

The incident which my friend narrated to me , I mentioned it exactly.
Since I do not have specific knowledge in it and he was also do not want to take any action against Bank, so I did not dig up the Whole Matter.

 

[Bugs Bunny]

getting mixed answers from websites as well

getting mixed answers from websites as well

Joint borrowers indeed have the liability but op didn't mention whether he was a joint owner or not. Assuming he wasn't one as his cibil is still intact

 

[imdjay]

Naah it doesn't work this way. It is the assets that gets passed along with liabilities attached to the assets, no one can demand unsecured loans from the child if the parent defaults.

and certainly not when the parent is alive.

 

[Pavan]

 

[sxchzy]

@im-raghav raise this matter with pno and then see the response you get.

 

[Bugs Bunny]

@im-raghav raise this matter with pno and then see the response you get.

If they gave in writing that the card was rejected due to his parents default ( which they probably won't ) then @im-raghav can certainly sue the banks and get a credit card along with handsome compensation.

 

[sxchzy]

If they gave in writing that the card was rejected due to his parents default ( which they probably won't ) then @im-raghav can certainly sue the banks and get a credit card along with handsome compensation.

well the bank hasnt recovered his fathers dues from him yet,
they have just blocked the card and most probably wont provide him with credit until his father repays.
so in the end they will just say due to bank credit policy and close it there.

 

[sxchzy]

as mentioned in this forum by someone the bank can legally ask you to pay your fathers credit card debt if you are an add on card holder

 

[AritraSaha]

I think what hdfc has done fall under gray zone.

Legal heir is not responding to pay up the parent debt.
Two exceptions.
1. He is co-signer
2. He is inheriting the father property.( Usually a executor will settle the loan).

I think he should consult with a lawyer.

 

[sxchzy]

l

I think what hdfc has done fall under gray zone.

Legal heir is not responding to pay up the parent debt.
Two exceptions.
1. He is co-signer
2. He is inheriting the father property.( Usually a executor will settle the loan).

I think he should consult with a lawyer.

or just pay back your oustandings and get it cleared

 

[AritraSaha]

l

or just pay back your oustandings and get it cleared

Ofcourse, his father can settle it