Credit Card Rules: Can you face jail for not paying credit card bill? Know what the law says?

Credit Card Rules: In today’s era, credit card has become an important part of people’s everyday life. Online shopping, electricity-water bills, flight tickets and emergency expenses – its use is considered easy and convenient everywhere. But the problem arises when the date for paying the bill comes and there is not enough money in the bank account. In such a situation, many people start fearing that if they do not pay the credit card dues, they will face police action or jail.

Is it a crime to not pay bills?

First of all, it is important to understand that not paying the credit card bill on time is not a criminal offense. This is a civil case, which is related to the recovery of borrowed money. If you delay in making the payment, the bank first sends a reminder, informs through call or email. In case of continuous default, the bank can file a case in the civil court. The court can order payment of the outstanding amount, but cannot send one to jail merely for not paying the bill.

When can you go to jail?

Jail is warranted only when the case exceeds simple default and turns into fraud. For example, if you have given fake documents while making the card, have given wrong information about your income, or have had the intention to defraud the bank from the beginning, then it can become a criminal case. In such a situation, the bank can file a police complaint and arrest is possible.

How big is the financial loss?

Even if there is no threat of jail, the financial loss can be serious. If you miss even one EMI or bill, your CIBIL score falls, which can make it difficult to get a loan in future. The interest rates on credit cards are very high, and late fees and penalties add up to make even small amounts seem big. In case of non-payment for a long period, calls from recovery agents can increase mental stress.

What is wisdom?

The best way is to make payments on time, talk to the bank about re-structuring or settlement options if needed, and use the credit card responsibly.

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