What is debt settlement?

Debt settlement is a legal process where we negotiate with your lenders to reduce the total amount you owe. Instead of paying the full outstanding balance (including inflated interest and penalties), you pay a mutually agreed-upon lump sum that is significantly lower — often 30-75% less than the original amount.

Is debt settlement legal in India?

Absolutely. Debt settlement is 100% legal in India. Banks and NBFCs regularly settle outstanding loans through negotiated agreements. RBI guidelines support resolution of non-performing assets (NPAs) through settlement. Our team follows all legal protocols and ensures full compliance.

Will my CIBIL score be affected?

If you're already in default, your CIBIL score is likely already impacted. Settlement marks the account as 'settled' rather than 'closed,' which has a temporary impact. However, being debt-free allows you to rebuild your credit over 12-18 months. We also guide you through the credit rebuilding process.

How long does the settlement process take?

Typically, the entire process takes 3-12 months depending on the complexity of your case, the number of creditors, and the total amount involved. Simple single-bank settlements can be resolved in as little as 30-60 days.

Can recovery agents harass me during settlement?

No. Under RBI guidelines and Supreme Court directives, recovery agents cannot harass, threaten, or use abusive language. Our anti-harassment service provides legal protection. We send legal notices to stop harassment and can represent you if needed.

What types of debts can be settled?

We handle credit card dues, personal loans, business loans, app-based loans, NBFC loans, and more. Essentially, any unsecured debt can be negotiated for settlement. For secured loans (car/home), we help with closure and NOC processes.

Do I get an NOC after settlement?

Yes. Once the settlement amount is paid, the bank issues a No Objection Certificate (NOC) confirming that the debt has been resolved. We ensure you receive this document as it's crucial for your financial records.

How much does Due Dost charge?

Our fees are transparent and success-based. We charge a percentage of the amount we save you — so you only pay a fraction to save a huge amount on your dues. The exact fee depends on your case complexity. Get a free consultation to know the exact terms.

How long does the credit card settlement process take?

For most credit card cases, the settlement process takes 45 to 90 days from initial assessment to final NOC. Complex multi-card or high-value cases may take up to 6 months. We keep you informed at every step and ensure the process moves as quickly as possible.

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Credit Card Settlement

Settle Your Credit Card Dues at Up to 75% Less

Drowning in credit card debt? Our expert legal team negotiates directly with banks to reduce what you owe — legally, ethically, and fast.

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Understanding the Process

What is Credit Card Settlement?

Credit card settlement — also known as One Time Settlement (OTS) — is a legally recognised process where your credit card issuer agrees to accept a reduced lump-sum payment to consider your outstanding dues as fully resolved.

When a credit card account becomes overdue for 90+ days, it is classified as a Non-Performing Asset (NPA) under RBI guidelines. Banks, at this stage, often prefer recovering a portion of the outstanding rather than pursuing lengthy legal proceedings — which opens the door for negotiated settlements.

Our expert legal team leverages this framework to negotiate the best possible OTS amount on your behalf — directly with the bank's recovery and legal departments — so you pay significantly less and receive a clean No Objection Certificate (NOC).

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Applicable for overdue accounts

Even if you've missed just one EMI, we can help. We assess every case individually — from a single missed payment to long-standing defaults.

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Banks regularly offer OTS

All major banks — HDFC, ICICI, SBI, Axis — have structured OTS programs for credit card defaulters.

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Save 40–75% on your dues

Interest, penalties, and late fees can often be waived entirely or reduced substantially.

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Receive a written settlement letter

The bank issues a formal written offer before you pay a single rupee.

Our Process

How We Settle Your Credit Card Debt

A structured, transparent 4-step process — from assessment to closure, we handle everything.

Free Case Assessment

We review your outstanding credit card amount, interest accrued, overdue tenure, and lender policies to determine your settlement eligibility and potential savings.

Strategy & Negotiation

Our legal team contacts the bank's settlement department directly and negotiates the One Time Settlement (OTS) amount on your behalf — aiming for the maximum possible reduction.

Settlement Agreement

The bank issues a formal written settlement offer letter specifying the agreed amount. You review and approve before any payment is made. No surprises.

NOC & Closure

You pay the settled amount directly to the bank. The bank then issues a No Objection Certificate (NOC) confirming full resolution of your credit card dues.

Our Network

Banks & NBFCs We Work With

We have established settlement relationships with all major banks and NBFCs across India.

HDFC Bank ICICI Bank SBI Axis Bank Kotak Mahindra Bank IndusInd Bank RBL Bank Yes Bank Bajaj Finserv Tata Neu Credit CardIDFC First BankAU Small Finance BankAll Major NBFCs

Don't see your bank listed? Call us — we work with virtually all lenders in India.

Bank-Specific Settlement Guides

HDFC Credit Card Settlement ICICI Credit Card Settlement SBI Credit Card Settlement Axis Bank Credit Card Settlement Kotak Credit Card Settlement IndusInd Credit Card Settlement RBL Credit Card Settlement Yes Bank Credit Card Settlement Bajaj Finserv Settlement Tata Neu Credit Card Settlement

Why Due Dost

India's Most Trusted Credit Card
Settlement Partner

Expert Legal Team

Our lawyers and financial experts have years of experience negotiating with banks. We know exactly what levers to pull to get you the best settlement.

100% RBI Compliant

Every step of our process strictly follows RBI guidelines and Indian law. You are fully protected — legally and ethically — throughout the settlement.

Success-Based Fee

We charge a fee only after successfully settling your dues. If we don't save you money, you don't pay us. Our incentives are fully aligned with yours.

Anti-Harassment Protection

Facing calls from recovery agents? We send legal notices on your behalf to stop harassment immediately, as mandated by RBI and Supreme Court directives.

Full Transparency

We share the bank's settlement offer letter with you before any payment. You stay in control of every decision — no hidden steps, no fine print surprises.

NOC Guaranteed

After you pay the settled amount, we ensure the bank issues a proper No Objection Certificate (NOC). This is your legal proof of closure.

FAQ

Frequently Asked Questions

Everything you need to know about credit card settlement in India.

What happens if I don't pay my credit card bill in India?

If you stop paying your credit card bill, the bank will first send payment reminders and late payment charges will accumulate. After 30–60 days, recovery calls begin. After 90 days of non-payment, the account is classified as a Non-Performing Asset (NPA) under RBI guidelines. The bank may then initiate legal proceedings or assign the account to a recovery agency. At this stage, credit card settlement (OTS) becomes a viable option to resolve the outstanding at a reduced amount.

Can I go to jail for not paying my credit card in India?

No, you cannot go to jail simply for not paying a credit card bill in India. Credit card debt is a civil matter, not a criminal one. Banks can file a civil suit to recover the outstanding amount, but non-payment of credit card dues is not a criminal offence. However, if you issue a cheque that bounces, that can lead to criminal proceedings under Section 138 of the Negotiable Instruments Act. Due Dost can help you settle your outstanding before legal proceedings escalate.

What percentage does a bank settle credit card debt for?

Banks typically settle credit card debt for 30% to 70% of the total outstanding, depending on the account age, amount owed, bank's internal OTS policy, and the negotiation. HDFC, ICICI, SBI, and Axis Bank all have structured One Time Settlement (OTS) programs. Due Dost's legal team negotiates to get the maximum possible reduction on your principal, interest, and penalties.

Does credit card settlement affect my CIBIL score?

Yes, settlement does impact your CIBIL score — the account is marked 'Settled' rather than 'Closed'. However, if your account is already in default or NPA status, your CIBIL score has likely already dropped significantly. Settlement stops further damage, clears the liability, and allows you to begin rebuilding your credit profile. Most clients see meaningful CIBIL improvement within 12–18 months of settlement.

How long does 'Settled' status stay on my CIBIL report?

A 'Settled' account status typically remains on your CIBIL report for 7 years from the date of settlement. However, its negative impact on your credit score diminishes over time, especially as you add positive credit history. We provide guidance on rebuilding your credit after settlement to minimise the long-term impact.

Can I get a loan after credit card settlement?

Yes, you can get loans after a credit card settlement, though it may take some time. Most lenders require 12–24 months of positive credit behaviour after settlement before approving new credit. Secured loans (against FD or property) are often available sooner. We help clients understand the credit rebuilding path as part of our post-settlement support.

What happens after 180 days of non-payment of a credit card in India?

After 180 days (6 months) of non-payment, a credit card account is typically written off by the bank as a bad debt (NPA). At this stage, the bank may sell the account to an Asset Reconstruction Company (ARC) or escalate to its legal team. However, settlement is still very much possible even at this stage — banks and ARCs are often more flexible with written-off accounts. Due Dost handles settlement negotiations even for accounts in advanced default.

Is it better to settle or pay credit card dues in full?

If you can afford to pay the full outstanding amount, paying in full is always better for your CIBIL score — the account is marked 'Closed' rather than 'Settled'. However, if you are in financial distress and cannot pay the full amount, settlement is a practical and legal option that ends your liability at a reduced cost. Our experts will advise you on the best path based on your specific financial situation.

How much can I save through credit card settlement?

Depending on your outstanding balance, overdue tenure, and the bank's internal OTS (One Time Settlement) policy, clients typically save between 40% to 75% of the total amount owed. This includes waiver on accumulated interest, late payment charges, and penalties. Our legal team negotiates the best possible terms for your specific case.

Is credit card settlement legal in India?

Yes, absolutely. Credit card settlement is 100% legal in India. Banks and NBFCs are guided by RBI's NPA (Non-Performing Asset) resolution framework, which encourages settlement of overdue accounts through mutual agreement. Our process is fully compliant with RBI guidelines and all applicable Indian laws.

What documents do I need for credit card settlement?

You will need: (1) Your latest credit card statements, (2) Identity proof (Aadhaar / PAN card), (3) Any communication received from the bank or recovery agents, and (4) Details of any previous payments made. Our team will guide you through the documentation process step by step.

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Settle Your Credit Card Debt Today.

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