Credit Card Rules: In today’s time, credit card has become an everyday necessity of people. Whether you want to make a purchase, make an online payment or have any unexpected expense, a credit card comes in handy. But sometimes circumstances become such that people are not able to pay the bills on time. Reasons like loss of job, loss in business or sudden illness are the major reasons for this.
When credit card bills are not paid, people start receiving phone calls, messages and calls from recovery agents. In such a situation, many people get scared that the police might file a case or they might have to go to jail. Often this question arises whether arrest can be made merely for not paying the bill.
Is there arrest only if there is arrears?
Non-payment of credit card bill is not a criminal offense in itself. This is a debt related matter, which is considered a civil matter in law. In such cases the police do not make arrests directly. The bank or card company first reminds you of the payment, then calls and, if necessary, contacts you through a recovery agent.
If the money is not received for a long time, the bank can file a case in the civil court. Efforts are made to recover the outstanding amount through the court only. There is no question of jail in this process.
When can the matter become serious?
If it is proved that while taking the card, you had given fake documents, given wrong information or had the intention of not making the payment from the beginning, then the matter may be different. In such a situation, it can be considered as fraud and then strict legal action can be taken. In this situation there can also be a possibility of arrest.
Losses due to non-payment of bills
Although no arrest is made, non-payment of credit card bill leads to many losses. First of all it affects your credit score. A delay of just a few months can cause the score to drop significantly, making it difficult to get a loan in the future.
Apart from this, the burden of late fees and high interest keeps increasing. The bank can close your card and the recovery process can be faster. If the matter reaches the court, you may have to face notices, hearing and additional expenses.
wisdom lies in this
If for some reason there is a problem in payment, it is better to talk to the bank. Finding a timely solution not only reduces problems, but can also prevent major losses in the future.
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