Case Study 6: One Time Settlement With Credit Clearance

There have been customers that have approached us to help them obtain a settlement with credit clearance. They all have had loans but had got into difficultly with one of them that was adversely affecting their credit score. In some cases, they were not aware that there were outstanding debts on old credit cards that they had foreclosed and paid in full.

In this type of situation, they only became aware of the outstanding debt when they checked their credit file or when they applied for a loan.

We have had many cases of people unaware of outstanding debts on their credit card, that is why it is important that they obtain a NOC or a NDC from the creditor when they foreclose and pay off their credit card in full. This is where our Advocates will obtain and ensure that the creditors will issue a NOC or NDC when they foreclose a credit card.

We have helped many clients obtain a settlement with credit clearance The following examples show how we were successful, allowing our clients to become debt free and improve their credit scores;

A client from Bangalore had a credit card with HDFC Bank and we were able to negotiate a discount of 21% on a debt that he had thought he had foreclosed on, but it was showing an outstanding of ₹27,942 on his credit file. We were able to negotiate a one time settlement for ₹22,100 with credit clearance and saving him ₹5,842. Our Advocates vetted the settlement letter to ensure that an NDC (No Due certificate) would be issued and confirmed that the adverse entry of “written off” was removed and replaced with “NIL Outstanding”
A client from Bangalore had a personal loan with Tata Financial and had got into difficulty and started to miss his EMI, whereas he was able to pay all his other loans on time. He had missed 8 EMI and he wanted to apply for a home loan but was rejected. We were able to negotiate a one time settlement discount of 41% on an outstanding balance of ₹1,02,992 saving him ₹42,492 and we had negotiated a settlement for ₹60,500. Our Advocates checked the authenticity of the bank’s letters and ensured that the letter had the terms that a “NDC” would be released on the full payment and also any adverse entry would be replaced with “NIL Outstanding”. He was now able to apply for a home loan knowing that his credit score should be good for obtaining an offer from the prime marketplace.
A client from Ludhiana had a credit card with HDFC Bank that he had foreclosed on but had not obtained a foreclosure letter. Now this was showing on his credit file as outstanding ₹65,604 and an entry of “Written Off” against the loan. We were able to negotiate a one time settlement of ₹31,500 discount of 52% with credit clearance with saving of ₹34,104.

Our Advocates checked the authenticity of the bank’s letters and vetted the letter to ensured that an “NDC” would be released on paying the settlement and that the “Written Off” entry replaced with “NIL Outstanding” or “Closed”, we were able to improve their credit score.