By Admin 
Credit Card Rules: There was a time when only a select few people had credit cards. Now almost everyone has a credit card. It seems easy to make card payment for online shopping, flight tickets, hotel booking or any other need. But when the bill is generated there is no balance in the account.
Then there may be trouble. This question comes in the mind of many people whether not paying the bill can lead to police action or jail. First of all, there is no need to panic here. Know what the law says for such a situation? Can you really get arrested for not paying your credit card bill?
Can there be jail for late payment?
If we talk about late payment, then merely not paying the credit card bill on time is not a criminal offense. This is a civil matter related to money transactions. Generally the bank or card company sends the reminder first. Then calls or emails. If the dues are not paid for a long time.
So the matter can go to civil court. The court can order recovery. But mere non-payment does not lead to arrest. That means normal default and crime are different things. Late fees, interest and penalties may apply. But it does not go directly to jail.
When can the arrest happen?
As we told you, you cannot be arrested directly for not making credit card payment. But when evidence of fraud is found. Like giving fake documents while getting the card made. Giving wrong information about income or having intention of not making payment from the beginning. In such cases the bank can file a criminal complaint.
If it is proved in the investigation that the intention was to cheat. Then the matter can become a criminal offence. Then police action and strict court process can be implemented. That means late payment is different. But proving fraud is a different matter and can lead to arrest.
What is the impact of not paying bills?
Even though the threat of jail may not be there in every case, the loss does not diminish. First of all your credit score falls. Even a delay of one or two months can affect the score. This later impacts home loan, car loan or personal loan.
Along with this, late fees and high interest keep adding up, due to which the outstanding amount can increase rapidly. Recovery agents contact you if payment is not made for several months. He can talk only within legal limits. But continuous calls can definitely increase mental pressure.
Also read: How much gold can Indians now bring from Dubai, what changes has the government made in the customs rules?