How to Settle Standard Chartered Credit Card Dues

Many people in India use credit cards as they are convenient and easy to use. You can buy things and pay the amount just by swiping your credit card. That sounds fun, right? However, there is one thing to note that if you don’t pay back your credit card bills then the bills get accumulated. Thus, later it becomes difficult to pay back in full.

If we talk about Standard Chartered Bank, ​as of March 2024, Standard Chartered Bank held a 0.3% share of India’s total credit card market which had approximately 10.18 crore credit cards in force. This suggests that Standard Chartered Bank had around 3.05 lakh credit cards outstanding in India. However, it is easy to guess that so many people could not repay their credit card bills. This thing made them stressed but there is a way to get out of it. You can go for a credit card settlement with Standard Chartered Bank and close your loan with less money. So why wait? Let’s understand more about the credit card settlement process and how you can also do that.

Why Do People Fall Behind on Credit Card Payments?

The reasons for people struggling to clear their credit card bills in India are different for everyone. For some people, it may be job loss and for some, it may be delays in receiving salary. On the other hand, some people may also have sudden emergencies like paying hospital bills or other similar types of needs. Sometimes, people spend more than what they can afford to repay and this also creates serious repayment issues.

If you pay the minimum due that shows on your credit card bill, don’t chill. That is because the remaining balance keeps accumulating with high interest. Thus, the outstanding amount can grow to double or even three times the original amount within a few months. This is why many credit card holders end up feeling stuck with the credit card dues that feel impossible to repay.

Standard Chartered Bank Credit Card Settlement Process

If you are also facing some issues in paying back your Standard Chartered Bank credit card bills, then you may ask the bank to settle your loan. In which you will have to pay a smaller percentage of the total loan amount and the rest will be waived off by the bank. The bank will accept and give you an offer after thoroughly understanding your situation. After that, you just have to pay the amount asked by the bank as a settlement amount and then your account will be closed. According to the Digital Payments Report by MeitY (Ministry of Electronics & IT), India recorded over 13,000 crore digital payment transactions in 2023, with credit cards contributing to a growing share of high-value purchases.

Assess Your Financial Situation

Before contacting the Standard Chartered Bank, you must meticulously check your income, expenses and other outstanding debts (If any). Then, you should have a clear idea of how much money you can afford to pay as the settlement amount. If you have faced some unexpected problems like losing your job, your business didn’t do well or maybe you had some medical issues so you can also include them. These details will help you to explain your case to the bank in a much better way. According to an NSSO consumption survey, over 42% of urban Indian households reported financial strain post-COVID, leading to higher loan defaults.

Alternatives to Credit Card Settlement

You should always check whether the other options may suit you better before opting for a settlement. That is because there are many options available if you are struggling with dues, like:

• Balance Transfer: In this option, you can move your outstanding dues to another bank that offers lower interest for a limited time.
• EMI Conversion: In this option, your credit card bill is broken into smaller monthly instalments that are easier to pay.
• Personal Loan: People also take out another loan which usually has a lower interest rate than a credit card, to clear their credit card dues at once.
• Restructuring: You can also ask the bank to restructure your dues where you will get more time to pay but without any waiver.

These alternatives may help you clear your credit card dues while protecting your credit score from bearing long-term damage.

Contact Standard Chartered Bank Customer Service

When you know your financial situation well, then you can proceed to contact the bank. Like you can call the Standard Chartered bank customer care or visit your nearest branch. Tell them that you are not able to pay the full bill and you want to settle your credit card dues. The bank will ask for your card number and check your payment history. Then they may give you an offer or ask you to submit documents to study your case thoroughly before giving you an approval.

Negotiate a Settlement Plan

Once the bank allows you to settle, but you are not comfortable with the amount that was asked by the bank is asking you to pay. Then, you can negotiate to reduce the amount but don’t forget to be polite throughout the process. You can also ask for a lump sum amount that you can manage or request small EMIs. Remember, if your reason is strong then the bank may agree to a lower payment plan that suits you.

RBI Guidelines on Recovery and Settlement

Many cardholders get anxious when the recovery agents start calling them. However, the Reserve Bank of India has clear rules to protect the consumers.

• According to the RBI guidelines, recovery agents cannot threaten, abuse or use bad language. They are allowed to call only during permitted hours and must treat customers respectfully.
• The bank must also give you written confirmation of any settlement before you make payments.
• Moreover, RBI advises banks to explore restructuring and repayment plans before turning to other recovery methods.

If you are aware of these rules, they will help you handle the recovery calls from agents with more confidence without getting anxious.

Provide Supporting Documents

After that, the bank may ask you to provide the supporting documents to prove your case. You may need to share documents like:

• Salary slip
• Bank statement
• Hospital bills
• Job Loss Letter

You can also write them a letter explaining your problem along with the right documents. These documents help the bank trust your case and provide you with a better offer for loan settlement. So, you should always be ready with the right documents and keep their copies with you.

Get the Settlement Offer in Writing

If the bank agrees to settle your loan and hand you an agreement, then make sure that you receive this agreement in the written format. This agreement must include the final amount, the last payment date and confirmation that no more money is left to pay after that. Also, don’t pay anything until and unless you get this agreement in the written form. This agreement is a proof that the bank has agreed to close your loan after this payment and you are advised to keep a safe copy of it as well.

Make the Payment

Once you receive the agreement in the written format then you can make the payment. As we have already discussed it above that you can pay the amount in one single payment or in small EMIs also. Once you have made the payment, then take that receipt and keep it with the settlement letter. Also, make sure that you do not forget to ask the bank for a no-dues certificate. This proves that you have finished the payment and nothing is left to pay and keep all papers safe for the future. According to NPCI’s Annual Report 2022–23, UPI accounted for 75% of transactions, but credit cards were used more for high-ticket online spending and EMIs.

Verify the Settlement

Once you have successfully made the payment, wait for 30 to 60 days and then check your credit report. You can check it on the websites like CRIF High Mark or Equifax India. Your report should show that the account has been “settled” instead of “active”. If the bank has not updated the credit report yet then you can call them again and show your documents. It is very important to make sure your report is updated correctly.

Difference Between Settlement, Closure, and Write-off

You need to know what makes the settlement different from all other outcomes before you opt for it.

• In a settlement, you pay a part of your total dues and the bank agrees to waive the rest. Your credit report will then show the status as “settled”.
• In a closure, you pay the full outstanding amount without any waiver. This is the best outcome for your credit history because your report will show the account as “closed”.
• A write-off happens when the bank is unable to recover the dues from you and records it as a loss. In this case, the status shown is “written-off” and it badly affects your credit score.

Seeking Professional Help

As per the Department of Consumer Affairs (GOI), credit card billing and settlement were among the top 5 complaint types in the banking sector in 2023. If you are not sure how to talk to the bank or feel nervous then you can take help from an expert loan settlement agency and they will work on your behalf. They will talk to the bank for you, prepare the documents and help you get a better settlement offer by negotiating with the bank on your behalf. Many people who cannot handle the process on their own take their help and close their debts without stress.

How Settlement Impacts Mental Health

You need to understand that credit card debt is not only a financial issue but also an emotional issue. Many people with credit card debt face sleepless nights thinking about how to repay their credit card debt. They also get anxious due to constant phone calls from banks and recovery agents.

The pressure often creates tension in family relationships and people live in constant fear of receiving legal notices. That is why choosing to go for a credit card settlement helps reduce this mental burden. Even though your credit score may be damaged but you will gain peace of mind knowing that the matter is resolved and you can start fresh.

Impact of Settlement on Credit Score

Before you opt for a credit card settlement so you must know that the bank will mark your account as “settled” and not “closed” in your credit report. It shows that you did not pay the full amount and your score may fall by 75 to 100 points. As per CRIF High Mark’s Q3 2023 Report, the delinquency rate (payments overdue by more than 90 days) for credit cards improved slightly from 2.6% in early 2023 to 2.4% by September 2023, showing better repayment behaviour. However, it is far better than the legal action against you and high interest charges also you can build your credit score again over time.

How to Rebuild Credit Score After Settlement

If you want to opt for credit card settlement but are scared of the impact that it will leave on your credit score, you don’t have to worry. That is because you can rebuild your credit score after the settlement. You just have to follow some healthy financial habits, like:

• You should make it a habit to pay all your EMIs and bills on time.
• You should only use your credit card only for necessary expenses.
• You should keep your credit utilisation limit below 30%.
• You should avoid applying for too many loans at once.
• You must check your credit report every 6 months.

Avoid Future Debts

Once you are done with the settlement, you must carefully use your credit card and try:

• Do not use your credit card for unnecessary things.
• Build an emergency fund for unexpected scenarios.
• Not to take too many loans at once.

The most important thing is to periodically check your credit report and track the progress to improve your credit score, also by practising healthy financial habits.

Final Thoughts

We have discussed that credit cards are helpful if used correctly. However, the bills might accumulate if not paid on time. Getting a settlement is a good idea when you are not in a position to pay back your credit card dues. However, it should be a last resort as it will have an impact on your credit score.

If you ever think of getting a settlement, then you must ask the bank for a No-dues certificate in written format. Nonetheless, if needed so do not hesitate to take help from the experts like Loan Resolve Services. After the settlement, use your credit card wisely and focus on improving your credit score step by step.