What proof will I get after settlement?

Answer

A:

After you settle a debt with a lender or creditor, it is very important to obtain proper proof of the settlement to protect yourself legally and financially. Here’s what kind of proof you should expect:

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1. Settlement Letter or Agreement

• A formal Settlement Letter or Settlement Agreement issued by the lender stating:

  • The agreed settlement amount

  • That the full and final payment has been received

  • The loan or debt account is considered closed and cleared

  • No further claims or liabilities remain

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2. No Dues Certificate (NDC)

• Sometimes, after settlement, the bank or lender may also issue a No Dues Certificate confirming that you owe nothing further on the loan.

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3. Receipts of Payment

• Receipts for all payments made toward the settlement amount, including any lump sum or installments.

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4. Credit Report Update

• The lender should update the credit bureaus (like CIBIL) to reflect that the account is settled or closed, which helps your credit score in the long term.

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5. Why This Proof is Important

• Protects you from any future claims by the lender.

• Acts as legal evidence in case of disputes.

• Helps maintain a good credit record.

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6. What To Do If You Don’t Receive Proof

• Follow up with the lender to provide the settlement letter and receipts.

• If the lender refuses or delays, you can send a formal legal notice demanding these documents.

• Legal365 can assist in obtaining these documents and ensure your rights are protected.

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How Legal365 Can Help

• Draft and review settlement agreements.

• Help you obtain official proof of settlement from lenders.

• Provide legal support if lenders refuse to acknowledge settlement.

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Need Assistance with Your Debt Settlement Proof?

 Visit: www.legals365.com
 Call: +91 9625961599

Advocate B.K. Singh and the Legal365 team are here to secure your financial peace of mind.

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