Sources in the banking industry reveal that the latest trend is to appoint fresh graduates to recover pending loans or instalments; well-attired recovery agents resort to 'illegal' methods to recover cash if all else fails A sort of evolution has overcome the banking sector, and menacing looking characters turning up at doorsteps of people defaulting on loan repayment, has almost faded away. Banks regularly used goons as recovery agents to extract forcefully money from defaulters until recently, but today a new breed of graduate, white-collared goon stalks the same arena and uses almost the same tactics if all else fails. <img alt="" src="/imagedata/2011/aug/bank.jpg" border="5" /> Representation pic Sources within the banking industry reveal that the latest trend is to appoint fresh graduates to recover pending loans or installments. To further back up the fact, statistics obtained from a premier career-tracking agency reveal that over 200 graduates have so far been hired as recovery agents. The glorified bouncers dress in official suits, carry laptops and sport fancy designations - and the high point of it all is that they often earn more than other bank employees. Same, but different? Sources also revealed that this change came after the RBI issued strict guidelines to all banks to train recovery agents on behaviour and banking, as a result of a series of complaints filed by defaulters. "This trend however is no better. The corporate sponsored violence has surely received a facelift, but the only difference is that instead of facing intimidating or rough looking agents, well-dressed and educated goons now approach defaulters," said the source. He also added that these well-mannered agents use a mild approach initially, but will use threats when defaulters give off signals that they cannot return or repay their debts. Mutually beneficial? Sources informed that recovery agents earn anywhere between Rs 12,000 and Rs 20,000 on a contract basis from the bank. "Interestingly, apart from being a bank job and our monthly salary and commission (per deal), we sometimes settle for mutually beneficial settlements with defaulters, who do not want to be hounded," claimed S Mangesh (name changed), one such graduate who has been working with a bank as a recovery agent for the past six months. The swanky avatar these agents don has led to a minor disagreement amongst the banking sector. "They are hired on contractual basis, but still end up making more money than us. They are given internal instructions to keep a low profile, but are given fancy designations," said J Meena, a bank employee. Amidst the high drama that the sector is generating in the inner circles, the middlemen are certainly drawing attention."Bangalore ranks fourth in the list of highest debtors, behind Hyderabad and Chennai. The city houses numerous credit card offenders and we get about 300 offenders who approach us every month. We strike a deal with the banks, get an official letter from them and then negotiate with the defaulter and both parties are content," said Subramaniam Vairavan, President, Debt Doctor. Commenting on the trend, he further affirmed that such recovery agents use intimidation as their tool. "They either land up on the defaulter's doorstep as early as 7 am and create a scene for all to see, or send a group of people with official bank tags. They sometimes employ illegal methods to reach those who switch off their phones. However, intimidating offenders is their strongest tool so far," explained Vairavan. Meanwhile, when questioned about the same, several banks chose not to comment.

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Sources in the banking industry reveal that the latest trend is to appoint fresh graduates to recover pending loans or instalments; well-attired recovery agents resort to 'illegal' methods to recover cash if all else fails

From graduate to bank goon?

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From graduate to bank goon?

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