Legal & Regulatory Disclaimer

DebtsFree is a debt resolution consultancy. Settlement is subject to lender approval and is not guaranteed. Reduced settlement may affect your credit report and future borrowing. This is not legal advice. Please consult an independent legal professional for advice specific to your situation.

1. Independent Advisory Status

DebtsFree is operated by RDDS Legal Solutions (OPC) Private Limited, an incorporated legal advisory consultancy. We are NOT a lender, bank, Non-Banking Financial Company (NBFC), recovery agency, or a direct affiliate of the Reserve Bank of India (RBI). Any references to banking institutions or NBFCs on this website describe third-party entities with whom our clients hold debts and do not imply an official agency relationship, sponsorship, or endorsement.

2. Credit Bureau Score Consequences

Settling a loan for an amount lower than the full contractual balance will result in the lending institution reporting the status of the account to credit information companies (including TransUnion CIBIL, Equifax, Experian, and CRIF High Mark) with the remark "Settled" or "Post-Write-off Settled". This reporting will reduce your credit score and will be visible to future lenders for a multi-year period, potentially impeding your ability to secure fresh credit facilities until your credit history is rebuilt.

3. Secured Loan and Collateral Risks

For secured loans (such as home loans, property loans, or vehicle loans), failure to service EMIs creates an immediate risk of collateral attachment and enforcement under the SARFAESI Act, 2002 or commercial repossession laws. DebtsFree provides negotiation support but cannot prevent legal auction proceedings if statutory notices expire without settlement.

4. Advice on Ongoing EMIs & Court Summons

Borrowers must NEVER stop paying loan EMIs, bounce cheques willfully, or ignore court summons merely on the expectation of obtaining a settlement through a consultancy. Non-payment of dues carries legal and penal interest consequences for which the borrower remains solely liable under Indian law.