RBL Bank Credit Card Settlement: How to Clear Your Dues Without Legal Action
Credit card debt can become overwhelming, especially when missed payments lead to late fees, high interest rates, and constant recovery calls. If you are struggling with RBL Bank credit card dues, a credit card settlement may help you reduce your financial burden and avoid legal complications. This guide will walk you through the process of settling your RBL Bank credit card dues while protecting your financial future.
What is RBL Bank Credit Card Settlement?
A credit card settlement is a negotiation process where you pay a reduced amount to close your outstanding debt. Instead of repaying the entire overdue balance, you and the bank agree on a lump sum amount—typically lower than the actual dues—to settle the account.
For example, if you owe ₹1,50,000, the bank may agree to settle for ₹90,000 as a one-time payment. However, this will be reported as “Settled” on your credit report instead of “Closed”, which can impact your CIBIL score.
How to Settle Your RBL Bank Credit Card Debt
1️⃣ Assess Your Financial Situation
- Calculate your outstanding balance, interest charges, and late fees.
- Determine how much you can afford to pay as a lump sum.
2️⃣ Contact RBL Bank’s Recovery Team
- Reach out to the bank’s debt recovery department to discuss your inability to pay the full amount.
- Request a one-time settlement option.
3️⃣ Negotiate the Settlement Offer
- Banks usually offer an initial settlement amount, but you can negotiate for a lower figure.
- Ensure that all late fees and additional charges are waived.
4️⃣ Get a Written Agreement
- Always request a written settlement letter from RBL Bank before making any payment.
- The letter should confirm the agreed settlement amount, payment deadline, and account closure terms.
5️⃣ Make the Payment and Obtain NOC
- Pay the settled amount as per the agreement.
- Obtain a No Objection Certificate (NOC) as proof of settlement.
6️⃣ Check Your Credit Report
- Ensure that RBL Bank updates your credit report correctly to reflect the settlement.
- Your report may show the account as “Settled” instead of “Closed,” which could impact your credit score.
Pros and Cons of RBL Credit Card Settlement
✅ Pros:
- Reduces overall debt burden.
- Stops legal action and collection calls.
- Helps in avoiding court cases.
❌ Cons:
- Lowers your CIBIL score as “settled” accounts are considered negative.
- Future loans and credit approvals may become difficult.
- Some banks may refuse settlements.
Alternatives to Credit Card Settlement
If settlement is not the right option for you, consider these alternatives:
💡 EMI Conversion: Convert your outstanding dues into smaller EMIs.
💡 Debt Consolidation Loan: Take a personal loan to pay off credit card dues at a lower interest rate.
💡 Balance Transfer: Transfer your dues to another credit card with lower interest.
💡 Debt Restructuring: Request lower EMIs or an extended repayment tenure.
Avoiding Legal Action and Bank Harassment
If you are facing excessive collection calls, threats, or harassment from RBL Bank’s recovery agents, know your legal rights:
✅ Banks cannot use abusive language, threats, or force to recover dues.
✅ Recovery calls should only be made during reasonable hours (as per RBI guidelines).
✅ You have the right to file a complaint against any harassment with the bank or the Banking Ombudsman.
Final Thoughts: Should You Settle Your RBL Credit Card Debt?
If you are unable to repay your RBL Bank credit card dues in full, a one-time settlement may be a viable option. However, it is crucial to understand the impact on your credit score and explore other repayment options before making a decision.
At Settle Loan, we help borrowers negotiate settlements while ensuring legal protection.
📞 Call Now: 1800-309-1902
📧 Email Us: info@settleloan.in
