What happens if credit card bill is not paid? Jail or fine, know what the law says

Credit Card Rules: Earlier credit card was seen only with some special people, but now it is in every pocket. From shopping to ticket booking, making card payment seems very easy but the real difficulty comes when there is no money in the account to pay the bill. In such a situation, many people get nervous and fear that if they do not pay the bill, the police might catch them and take them to jail. If you are also worried about this, then it is a matter of relief that you do not need to panic immediately. Let us understand in simple words what the law says in this matter and whether there really is a risk of arrest in this.

Can there be jail for late payment?

• Not paying credit card bill on time is not a ‘criminal case’.
• This is considered to be a completely civil matter related to money transactions.
• In case of non-payment of the bill, the first thing the bank does is send a reminder, phone call or email to remind you.
• If you do not pay the dues for a long time, the bank can go to civil court for recovery.
• The court may order you to return the money, but non-payment does not directly lead to arrest or jail.
• If there is delay in payment, the bank can impose heavy interest, late fees and penalty on you.

When can the police catch?

• If you have given fake documents while taking the card or have lied about your income, then the trouble may increase.
• If the bank feels that your intention was to embezzle the money from the beginning, then it can file a criminal case against you.
• If fraud is proved in the investigation, police action can be taken and you can also be arrested.
• Simply put, not being able to make payment due to compulsion is a civil matter, but lying and fraud is a legal offense.

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What will be the harm by not paying bills on time?

• Even if you don’t have to go to jail in every case, there are serious consequences for not paying bills.
• First of all, your credit score (CIBIL) gets spoiled, due to which it becomes very difficult to get a home loan or car loan in future.
• Even a delay of just one or two months can have a negative impact on your ability to take a loan.
• If the bill is not paid, the bank charges heavy interest and late fees, due to which a small amount becomes very big.
• In case of continuous non-payment, the recovery agents of the bank start contacting you.
• Although agents have to talk within the ambit of law, their repeated calls can cause mental stress.