After you have successfully conciliated a dispute and the parties have agreed to the terms, it is time to capture it in a conciliation award.
There are 2 types of settlements that can be arrived at :
- Foreclosure Settlement
- Regularization settlement
We will be sharing both the draft templates with you.
Foreclosure means payment of total outstanding without any waiver provided by the bank. In foreclosure CIBIL will not get impacted and the tag attached to the case in the bank’s system and records would be closed
Regularisation is a settlement with staggered repayment along with waiver provided by the bank. It is important to note that a regularization will lead to a negative impact on the CIBIL score because the customer is taking a waiver. The tag attached to the case in the bank’s system and records would be settled. ( Customers will sometimes get upset that their CIBIL will get affected, but don’t forget to remind them that by defaulting, they are already hurting the CIBIL score. So it is best to take an option that helps them solve the issue.)
You can find both draft awards attached with this post.