re my credit card of stanchart bank

[sachiinwaichall]

dear cardbhai,
as told to u in my earlier post about my stanchart credit card i would like to inform u as follows
    for the full & final settlement of my stanchart credit card no. 5473 5972 5047 3578 i approached the stan chart bank in pune in cerebrum apts, kalyaninagar pune. there i was told that the liability of all credit cards issued from 1997 to 2005 was transferred to some recovery agency but the manager collection was not able to trace the address & name of the agency as he had no idea about it,

          one of friend whom i had spoken about my credit card problem gave me a letter which he had received from stan chart which stated that the liability of his card has been transferred to SHAH FINLEASE PVT.LTD MUMBAI.( I have crossed checked this with the bank officails & they said that it is true that we have transferred the liability of these cards to SHAHA FINLEASE P LTD MUMBAI) the letter had address of the company & their contact nos. i got the idea & i contacted shaha finlease & discussed about my credit card. now they have offered me a full & final settlement & they have sent me a scan copy of full & final settlement letter on my mail id. but the thing is that the full & final settlement letter is on the LETTER HEAD OF SHAHA FINLEASE PVT LTD. & NOT ON THE LETTER HEAD OF STAN CHART LETTER HEAD.
NOW THERE ARE QUESTIONS

1. IS SHAHA FINLEASE  OR ANY OTHER COMPANY WHICH HAS AN DEED OF ASSIGNMENT WITH ANY CREDIT CARD COMPANY AUTHORISED TO GIVE SETTLEMENT LETTERS ON THEIR LETTER HEAD?OR AN THEIR OWN

2. WILL THIS SETTLEMENT LETTER (letter given on letter head of other company other than the card issuing company) help in removing name from CIBIL.

3. is LIABILITY TRANSFER AS PER LAW?

4. should i go furthur with this settlement?what precaution should i take before closing this deal?

PLEASE ADVICE

[cardbhai]

Yes Bad Assets can be transferred or Sold by the banks to others and one company active in this field is ARCIL. [asset reconstruction company]

I am not sure of Shaha finlease. The problem here is how to improve your credit score and get rid off the bad remark. So who is the agency reporting default on your credit report ? It is the Bank, right ? So get the ban involved in Written correspondence and see if the matter can be resolved.

Best

[sachiinwaichall]

dear cardbahi,
my query is still not resolved... please... please review the questions & reply
thanks
sachiin

[cardbhai]

1. I am not sure , but they seem to be authorized to do so.

2. NO. Shah Finlease Cannot Update CIBIL Record since it is not a member there.

3. Yes I think, bad Assets can be transferred

4. Precautions -
4.a - Tell them you want to settle. Get letter of full and final settlement with A/C Close Status of CIBIL being "Left Blank" without any negative remark

First, ask them if they can get your CIBIL Records Changed ? If so then procedure. Then tell them that they have to enter into a legal understanding [seek help of a lawyer]  and if they do so, go ahead and Pay and close the issue.

[ashishthakur78]

May be this can help:


SCB rapped for debt buys

Gunjan Sharma
Posted: Tuesday, Jan 19, 2010 at 2341 hrs IST
Updated: Tuesday, Jan 19, 2010 at 0003 hrs IST


 

New Delhi: Standard Chartered Bank (SCB), the largest foreign bank in India, is under fire for purchasing bad debts without an appropriate licence. The Reserve Bank of India has pointed this out in response to an RTI application. The issue came to light in the debt recovery tribunal, Delhi, in a case involving SCB’s purchase of bad debt from State Bank of India (SBI). The tribunal has also rapped the UK bank for “serious irregularities committed in the name of amicable settlement”.

Under section 3(4) of the Securitisation & Reconstruction of Financial Assets & Enforcement of Security Interests (aka Sarfaesi) Act, only asset reconstruction companies (ARCs) can take over bad debts. SCB is not authorised to buy the debts of other banks, as it does not have the necessary licence.

The case involves SBI transferring debts and securities worth Rs 200 crore to SCB for just Rs 2 crore in May 2007. Among other debts, SCB took over those of Hindustan Tradex and initiated recovery proceedings against the company before the tribunal. In the course of the proceedings, SCB moved an application to withdraw the case and it was only then that the alleged irregularities came to light.

Replying to an RTI application, RBI recently clarified that SCB does not have a licence under the Sarfaesi Act to buy debts with other banks. SCB, however, told SBI that it had obtained a certificate of registration as a securitisation & ARC.

SCB sought to withdraw the case on the grounds that there was a one-time settlement of

Rs 9.6 crore for the debt, which was originally worth Rs 75 crore. Interestingly, in a similar case for the recovery of dues filed by Punjab National Bank (PNB) before the tribunal, SCB had objected to such a settlement, arguing that “the value of mortgaged assets, though very high, has been sold for a very inadequate consideration in connivance with the officers of the bank”.

In response to an email from FE, an SCB spokesperson said: “Banking is a regulated sector and we do not do what we are not allowed to do in India by RBI.”

The tribunal’s presiding officer, AK Tripathi, observed that there is no provision by which an applicant bank can withdraw a case under the Recovery of Debts Due to Banks & Financial Institutions Act.

Tripathi also found that settlement provisions under the Civil Procedure Code would not be applicable in this case...

Would love to know the views of card bhai in this regard.


Ashish Thakur