Kissa recovery ka

Henchmen of financial firms still harass the defaulters despite supreme court guidelines and police helplines

Kissa recovery ka

Henchmen of financial firms still harass the defaulters despite supreme court guidelines and police helplines

Goons hired by a financial firm traumatized a lawyer in Gurgaon for seven hours. The lawyer suffered a heart attack before the cops finally came to his rescue.

The highest court of the land has passed censures against them. The police have launched helplines. So, what. The 'wasooli' gangs are alive and kicking.

The notoriety that these musclemen have gained is on a roll.

Dus saal baad
For 60-year-old Yunus Khan, life has not been usual for the past few weeks. The senior citizen received a letter from Standard Chartered Bank in 2007, stating that he has some money due on his credit card from 1997. This was the same card that Khan had discontinued 10 years back and since then never received any report or statement from the bank.

A few weeks back Khan started getting calls from some goons, asking for Rs 20,000 due on his credit card in 1997. Though Khan tried his best to clear the confusion, the recovery agents didn't pay heed and kept harassing him over the phone.

"I complained to Standard Chartered Bank and the Reserve Bank of India, but nothing has happened so far. Banks have the authority to recover their rightful dues, but terrorizing people like this, is simply unacceptable," added Khan.

Muscle power
Lokesh Jain, an MNCu00a0 employee in Greater Noida,u00a0 shares a similar experience. "I own a ICICI Bank credit card and have some outstanding bills. Due to recession and pay cut I was unable to pay my dues on time. Instead of solving the matter amicably, the recovery agents started harassing me and are literally after my life."

Law in order?
In 2007, the Supreme Court strongly deplored the practice of banks and financial institutions using 'goondas' and 'musclemen' to recover loans from alleged defaulters. A Bench comprising Chief Justice designate KG Balakrishnan and Justice DK Jain asserted that recovery of loans, if any, should be only through legal means. In the past, Delhi State Consumer Commission has also made it clear to the banks and financial institutions that if its directions are not followed in a coherent manner, then the officers may be awarded jail term in accordance with the Consumer Protection Act.

Officials speak
A senior official of Barclays Bank said, "There are many cases pending in the banks across the country. Though there have been guidelines issued by the RBI, banks at times don't follow them. The agents are paid a certain percentage of the total amount recovered from the defaulters as commission. Most of them are hired from Bihar, Uttar Pradesh, Haryana and Rajasthan and are school or college drop outs."

"The banks are not the only ones hiring these goons. They are being hired even by the telecom companies, private money lenders and brokerage firms. These corporate houses openly break the norms. I think they should be dealt with first, as they are staunch supporters of the goons. Often they are asked to try out possible methods to get back the money from the defaulters," said Rajeev Khandelwal (name changed) from Axis Bank.

RBI Guidelines
Recovery agents to get minimum 100 hours of training
Recovery agents should call borrowers only from telephone numbers notified to the borrower
Each bank should have a mechanism, where borrowers' grievances can be addressed in respect with the recovery process
Banks are advised to ensure that contracts with recovery agents do not induce adoption of uncivilized, unlawful and questionable behaviour
Banks should strictly abide the codes pertaining to collection of dues