HDFC Moneyback Credit Card disabled by them

[im-raghav]

Hi All,
I applied for a credit card with HDFC from branch and they approved it with 75k limit but upon arrival I was unable to enable it or do any transaction, I visited branch they had also no ideas what's the issue. After I tweeted got a call back from them and they told since my father had defaulted on his credit card payments with them that's why their back end team disband my credit card after receiving? What can be done in this case, I have good cibil 780+ and never defaulted on any payment and no link to my father. How to get credit from HDFC now.
The card still shows in my account but shows available limit 0

 

[COSMOCRAT]

getting mixed answers from websites as well

To put it in short:

Credit card loans are unsecured.
They are high risk, high reward, sort of for lenders.
Unsecured loan's repayment can be refused. (Even by the one who took it.)
The downside is it will cause problems for family members (especially immediate ones) to get a fresh loan as they will also be seen as a liability.
So it's best to pay off keeping future needs or emergencies in mind. (Future is the main reason why people pay off their loans timely, instead of running away with one-time free money)

If one doesn't have anyone next in the family and is thick-skinned. Don't pay back, enjoy that one-time free money. But it will probably be his last loan ever.

 

[imdjay]

as mentioned in this forum by someone the bank can legally ask you to pay your fathers credit card debt if you are an add on card holder

The bank can say anything to recover the loan.
Legally, the addon holder can not be liable for this.

 

[Bugs Bunny]

well the bank hasnt recovered his fathers dues from him yet,
they have just blocked the card and most probably wont provide him with credit until his father repays.
so in the end they will just say due to bank credit policy and close it there.

There's no such credit policy which deprives a son, having strong credit score a credit card due to his father's poor records.

 

[Deleted member 11974]

kindly share the rbi master guidelines for this if somebody finds it

 

[Deleted member 11974]

There's no such credit policy which deprives a son, having strong credit score a credit card due to his father's poor records.

well technically issuance of credit lies at the sole discretion of the bank at the end of day

 

[Bugs Bunny]

well technically issuance of credit lies at the sole discretion of the bank at the end of day

Well, they still need to cite a reasonable excuse for the non issuance as per recent RBI guidelines. They simply can't cite any internal criteria.

 

[AritraSaha]

I don't think rbi will be helpful in this matter.

 

[imdjay]

well technically issuance of credit lies at the sole discretion of the bank at the end of day

You should understand this statement. This line means that higher authority is given to Bank. For example, If you are going to take an Amazon ICCI credit card. The ICICI bank holds the right to decline it. Amazon cannot do anything about this. here ICICI Bank is above Amazon.
But all the Banking guidelines are decided and regulated by RBI. And hence RBI has the authority to over-rule any bank's judgment.

Again, The Court comes above RBI bank and Court can guide RBI. So Court has higher authority.
No self-written policies can change this.
I hope I was clear enough.

 

[cryoengine]

Banks have every right to deny services to family members of a defaulter. There is a reason why banks take nominees for everything.

Debt inheritance may not hold in court while the parent is still alive. But denying services will still hold citing bank's internal policies.

Paying the dues is the only way.

 

[Deleted member 11974]

You should understand this statement. This line means that higher authority is given to Bank. For example, If you are going to take an Amazon ICCI credit card. The ICICI bank holds the right to decline it. Amazon cannot do anything about this. here ICICI Bank is above Amazon.
But all the Banking guidelines are decided and regulated by RBI. And hence RBI has the authority to over-rule any bank's judgment.

Again, The Court comes above RBI bank and Court can guide RBI. So Court has higher authority.
No self-written policies can change this.
I hope I was clear enough.

rbi wont do anything here,
because 1 it seems to be a willful default otherwise bank would have restructured the debt and would have extended more credit
2. there seems to be more than what meets the eye like maybe family banking or co-applicant or something

 

[Deleted member 11974]

Well, they still need to cite a reasonable excuse for the non issuance as per recent RBI guidelines. They simply can't cite any internal criteria.

they can,they do and they will continue to do
they are not answerable to us for not providing a service or a product

 

[Bugs Bunny]

they can,they do and they will continue to do
they are not answerable to us for not providing a service or a product

well if they wouldn't have issued the card at first place then they could've cited any random criteria and we were bound to accept that but after issuing a card and then cancelling citing this as reason is absolutely ridiculous

 

[imdjay]

rbi wont do anything here,
because 1 it seems to be a willful default otherwise bank would have restructured the debt and would have extended more credit
2. there seems to be more than what meets the eye like maybe family banking or co-applicant or something

aur isia karan se wo bill chukaana nahi chahte.
And because of this reason, they do not want to pay the bill.

Jo kerna hai ker lo,
Do whatever you want to do.

😁

 

[SunnyM]

Banks have every right to deny services to family members of a defaulter. There is a reason why banks take nominees for everything.

Debt inheritance may not hold in court while the parent is still alive. But denying services will still hold citing bank's internal policies.

Paying the dues is the only way.

Also people who willfully default on any kind of loans should be treated as criminals. Beggars can't be chosers.

 

[Deleted member 11974]

aur isia karan se wo bill chukaana nahi chahte.
And because of this reason, they do not want to pay the bill.

Jo kerna hai ker lo,
Do whatever you want to do.

😁

if you are a willful defaulter and the bank on finding about this declines your credit you cant act surprised or feel cheated.
yeh to ulta chor kotwal ko daate hogaya

 

[Trust Me]

well the bank hasnt recovered his fathers dues from him yet,
they have just blocked the card and most probably wont provide him with credit until his father repays.
so in the end they will just say due to bank credit policy and close it there

The simplest way out for the OP in the mean time could be just to ask his father to extend a line of credit to him until he pays up himself! It could prove more beneficial to the OP too, since he has already learnt from his father what to do with such credit! 🙂.

 

[cryoengine]

Also people who willfully default on any kind of loans should be treated as criminals. Beggars can't be chosers.

I understand the sentiment but it's not going to happen. It's not a good PR for any political parties. Also it could backfired severely. Banks will abuse and harrass people who are truly in unfortunate circumstances to pay back except those who can travel to UK.

 

[AritraSaha]

I understand the sentiment but it's not going to happen. It's not a good PR for any political parties. Also it could backfired severely. Banks will abuse and harrass people who are truly in unfortunate circumstances to pay back except those who can travel to UK.

 

[blacktiger]

I think in india there is no rule which says next generation need to settle amount 🙂 valid case if you go to RBI you will be even compenstated

the only case it happens if the next generation inherited property form parents, banks can challenge that.

 

[im-raghav]

This happened again, my previous card was closed as it was inactive for over a year. I applied for moneyback+, got approved and the card got delivered. Now, while trying to activate it same issue blocked by backend, shows available credit as 0. What can be done ? Will I never be able to hold any HDFC card now ?