Bank of Baroda (BoB) Credit Card Settlement: How to Reduce Your Debt Legally
Struggling with Bank of Baroda (BoB) credit card debt? If you’re unable to make full payments, you may be considering credit card settlement as an option. However, many borrowers face harassment from banks and recovery agents during the settlement process.
In this guide, we’ll explain how to legally settle your BoB credit card dues, protect yourself from harassment, and understand your rights as a borrower.
What is Credit Card Settlement?
Credit card settlement is a process where the bank agrees to accept a reduced lump sum payment instead of the full outstanding balance. This is usually considered a last resort when the borrower is facing severe financial difficulties.
Example:
If your outstanding balance is ₹2,50,000, Bank of Baroda may agree to settle the dues for ₹1,50,000 as a one-time payment. However, the account will be marked as “Settled” in your CIBIL report, which negatively impacts your credit score.
Step-by-Step Process for BoB Credit Card Settlement
If you are unable to repay your BoB credit card dues, follow these steps to negotiate a settlement legally:
1. Assess Your Financial Situation
- Calculate how much you can afford to pay as a lump sum.
- Try to arrange the amount before negotiating for settlement.
2. Contact BoB Customer Care or Debt Recovery Department
- Call BoB customer care and request to speak with the debt recovery team.
- Explain your financial difficulties and ask about settlement options.
3. Negotiate the Settlement Amount
- BoB may offer an initial settlement amount, but you can negotiate for a lower payment.
- Request a written confirmation of the settlement amount before making any payments.
4. Get the Settlement Agreement in Writing
- Before making any payment, ask BoB to provide a settlement letter that clearly mentions:
✅ The agreed settlement amount
✅ The payment deadline
✅ Confirmation that no further dues will be claimed after settlement
5. Make the Payment & Obtain a No Objection Certificate (NOC)
- Pay the agreed amount before the deadline.
- Request a No Objection Certificate (NOC) from BoB as proof that your dues have been settled.
6. Check Your CIBIL Report
- After the settlement, check your CIBIL report to ensure that the status has been updated correctly.
- If there are errors, file a dispute with BoB and CIBIL for correction.
Dealing with Harassment from BoB Recovery Agents
Many borrowers face harassment from bank agents during the recovery process. Here’s what you should know about your legal rights:
✔ Banks & Recovery Agents CANNOT
🚫 Call you at odd hours (before 7 AM or after 9 PM).
🚫 Use abusive language, threats, or intimidation.
🚫 Visit your home or office repeatedly.
🚫 Publicly shame or disclose your debt to your employer, relatives, or friends.
✔ What to Do If You Face Harassment?
🔹 Request written communication – Avoid verbal pressure or threats.
🔹 File a complaint with BoB’s Grievance Redressal Cell.
🔹 Report to the Banking Ombudsman if harassment continues.
🔹 Seek legal assistance if needed.
Pros and Cons of Bank of Baroda Credit Card Settlement
✔ Pros:
✅ Reduces overall debt burden.
✅ Helps avoid legal action from the bank.
✅ Stops continuous follow-up calls and recovery agent visits.
❌ Cons:
🚫 Negatively impacts your CIBIL score.
🚫 Future loan approvals may become difficult.
🚫 Some banks may reject settlement requests.
Alternatives to Credit Card Settlement
If you don’t want to damage your credit score, consider these alternatives:
🔹 Convert the balance into EMIs – Request BoB to restructure the dues into smaller affordable EMIs.
🔹 Apply for a balance transfer – Transfer your outstanding dues to a low-interest credit card or personal loan.
🔹 Debt consolidation loan – Take a single loan to clear all outstanding debts and repay in smaller EMIs.
Need Help with BoB Credit Card Settlement & Harassment Issues?
If you’re struggling with Bank of Baroda credit card debt or facing harassment from recovery agents, we can help you negotiate a fair settlement and ensure your rights are protected.
📞 Call Now: 1800-309-1902
📧 Email Us: info@bankharassment.com
