Myth #1: “Settlement Karne Se Court Case Aur Arrest Warrant Nikalega!”

Unsecured credit card debt is a Civil Dispute, not a Criminal Offense. Under Section 138 NI Act (bounced cheque) vs Section 420 IPC (cheating from day one). Mere default due to job loss or medical emergency is not a crime. Banks file civil recovery suits, not arrest warrants.

Internal link → RBI guidelines on loan recovery agents harassment (to: /blog/stop-collection-calls-rbi-rules/)

Myth #2: “Settlement Ke Baad Passport Renew Nahi Hoga / Visa Reject Ho Jayega!”

Passport Authority checks for Pending Criminal Warrants. Unless the bank has filed a criminal case (very rare for pure default without forgery), your passport is safe. Passport Act 1967: Only court orders affect issuance. No criminal case = no problem.

Myth #3: “Bank Puuri Amount Legi Ya Legal Notice Bhejti Rahegi” (The RBI Shield)

Banks must follow RBI’s Fair Practices Code. You can demand a fair settlement through the Principal Nodal Officer. We’ll show exactly how.

Myth #4: “CIBIL Score Zero Ho Jayega Hamesha Ke Liye”

Timeline: Month 1 (Settled status) → Month 13 (Get FD-backed card) → Month 24 (Score 650+). Internal link → process to remove settled status from CIBIL (to: /services/cibil-repair-consultation/)

Myth #5: “Tax Dena Padega Written-Off Amount Par!”

If bank writes off ₹5 Lakhs, it’s Remission of Liability u/s 41(1). You may need to show it as income. Always consult a CA. This honesty builds trust — we don’t hide tax reality.

Internal link → talk to our debt settlement advisors now (to: /contact/)