Tuesday 11 December 2007

Coercive methods for recovering dues:

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Strange but true it is that many a financial institutions including banks in public sector find it convenient to resort to strong arm tactics for recovery of their dues/loans.In many cases they hire goons and criminals who contact the borrowers, terrorise them to the extreme applying coercive methods to make recoveries to earn their commission. Even mobile companies find it feasibly convenient to use this sort of channel to recover the dues from the subscribers. Position is much worse in the case of housing loans and advance for purchase of four wheelers. In one instance a person driving a car (himself not being the borrower) was forcibly dragged out of the vehicle, beaten up mercilessly resulting into profuse bleeding and the car snatched away by the goons so hired for the purpose. Renowned banks like ICICI are very often quoted by the media for indulging in such activities. In a case from New Delhi, the State Consumer Commission slapped a fine of 55 lakhs on them. True, those who borrow must pay back their dues but if they fail to timely follow the schedule of payment, the lenders have no reasons to resort to criminal sort of approach in the name of recovery. The reason behind such happenings is the lack of awareness on the part of the borrowers and when they need money they need it urgently in many cases unable to apply their mind for necessary alternatives. Recovery of dues must be there and none can advocate just for writing them off but there is equally no justification in applying draconian methods for their recovery.

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