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I have multiple personal loans and credit card dues with different lenders. My total monthly EMI burden is much higher than my income, and due to financial hardship, I am unable to continue paying all the EMIs. I am receiving collection calls from the lenders. I want to request a One-Time Settlement (OTS) from the lenders and legally close the accounts. Please advise whether I should stop or avoid paying unaffordable EMIs and negotiate an OTS, how I should deal with recovery agents, and what legal protections I have against harassment or threats. Please also advise what precautions I should take before signing a settlement agreement or paying any settlement or consultancy fees. Can a loan settlement company or legal service provider be trusted, and what documents should I demand from them before making any payment?
Do not deliberately stop paying EMIs without understanding the consequences, as default may affect your credit record and trigger recovery proceedings. Request OTS or restructuring directly from each lender and obtain all terms in writing. Recovery agents cannot use threats, abusive language, or unlawful harassment. Before paying any consultant, verify their credentials and insist on a written agreement, fee receipt, lender authorization, and settlement documents. For further legal assistance contact us on our helpline number.