Banks collecting dues using private force
Oflate we find that Banks are appointing some agencies to recover the moneys due to them by the borrowers. These agencies are sending people in groups and they enter the premises and do all the harassment and torture to the inmates of the house or shop and threaten them to clear the dues immediately. For doing so, the agencies are paid hefty commissions ranging from 10% and above of the collected amount. These commissions are charged to the hapless borrowers accounts and that adds up to the loan burden further. There is no law which stipulates to regulate or control this menace. more
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ICICI, City Finance were the banks befor 7-10 yrs. These banks prefer not to settle the loans & credit card dues deliberately. These goons used to threaten customer of banks , but interestingly the goons used to come after informing nearest police station. The police had some cut , this cut was going to political party. Indirectly goons were backed by political party. more
Jun 05
This was happening mostly in recovering card dues. Here the question is the banks are taking possession of the properties of defaulting borrowers under the provisions of SARFEASI ACT, specially after issuing notice under section 13(4) and Section 14 and 17. While taking possession of the properties with the powers they are vested, they are deploying recovery agencies and taking possession to much embarrassment of the borrower or guarantor or tenant. For this purpose they are paying 10% of the recovered money. A commissioner advocate appointed by the Court is paid a fee of Rs. 5000 or so for the same job. Is there any legal provision which stops this menace. more
Jun 04
If these groups are not belonging to any guarantor of your loan or even as otherwise , Only report to the Station House officer submitting copies to the Circle , B.M. and Zonal manager of the Bank will work better as base proof for a further case as might also aware please . more
May 31
Koteswara Rao: A few years back, such practices were more common & rampant but by virtue of public outcry instances are coming down. As a matter of fact, one of the biggest Banks of America is the pioneer in this kind of recovery. Some people had even gone to the High Courts & the Courts have passed severe strictures against the concerned Institutions for employing such illegal practices. If you still come across such instances, then you can take up the matter in a Court of Law by preferring a writ as it is a matter of public importance. If you want further details on this please correspond with me on madhukarks@gmail.com or (0) 8903832185. Let us expose it and bring it to an end such dubious means adopted by certain Banks by employing agents for this. more
May 31
