After demonetization, though the flow of currency seems like newly printed notes, the economy may be is in bad shape now!. Lenders such as banks, finance companies seems to have become more aggressive in collections and revenue generations. I would like to share those atrocities and harassment faced by the people of India with regard to the excess powers that are being used by the rowdy like recovery agents of the banks.

Moreover, it is my opinion that, since when the Private Banks have been tightened, maybe they are not able to do any second way of revenue generations such as currency transfers, and there is a drastic decrease in a number of banking transactions, banks are victimizing the account holders and borrowers with fraudulent service charges.

Non-maintenance of Monthly Account Balance is charged heavily, digital transaction charges are indirectly costing too much. Well, such charges are being exorbitant on one side, the other hand loan accounts are facing indirect interest rates related to frauds and thrusting on the Non-Performance Assets and person loan outstandings.

In recent weeks, I have come across two recent cases which are like the happenings of the other world.

In the first case,  a Home loan Borrower who availed the loan in 2005 and paid all his EMI’s promptly for 10 years, but had a surprise from the ICICI Bank home loan department. Because, when borrower went to close the loan account because she has paid all the EMI’s, she got a new statement which has extended the tenure for another 80 months for the same EMI amount of 30000/- per month.

A plain understanding about such tenure increase might look like, it’s normal with every loan account. But, if you ask the loan borrower how painful it is how exorbitant the private bankers. Even otherwise I feel it is a white-collar crime, that is being done by the banks.

Actually,  if there is the floating interest rate, varied interest should be accrued to the end of every year and the borrower should be requested to settle or to add it to the EMI. But, banks like ICICI never do this, instead, they adjust the Principle amount and take more interest and push the principle amount as pending to end of tenure.

So imagine, if there is a change in the interest rate from 9% to 16%, after your tenure of 100 months, you will have to end up paying another 100 months. In my guess, for 25,00,000/- home loan for the tenure of 1o years would become 20 years tenure and in total, you would be paying around 75 lakhs, about 2 times the principle.

If you ask Ombudsman or the RBI OMBUDSMAN, they would talk like everything is perfect, it is interesting right that will be like that only. I felt very sorry for my client.

Where is the solution? Only god would know or the house you live should know?

The only advisable remedy is to sit across the branch manager table and try to settle the principle at discounted and close the deal. Otherwise, even if you approach the court, the court case may drag few more years and you might get a 4-page judgment, in the end, it won’t be able to exhibit any default on Bank’s side. Because they would establish that, its bank interest right, it would be like that only, it is as per RBI guidelines PRR/MCLR rate.

Also, you would get feedback that it is you who should be responsible for your bank accounts and you are the one paying you the loan, and you should tally ever year and set it right.

Well, don’t ask me how to go about it further. If you are interested in litigation about your bank’s exorbitant charges,  we can fight legally. Otherwise, you consult a lawyer, take him with you to the bank and do a settlement.

Personal Loan, Citi Financial Corp, To Kotak, ICICI Bank, Personal Loan.

Another case I dealt this week. It is the case of Kotak Mahindra, recovery agents following up Citifinancial customers, and trying to collect the addresses, including email and postal addresses. Since Kotak Mahindra has taken over the assets of Citi Financial corp, so any loans those were taken during 2005 to 2011 are transferred/assigned to Kotak, you might get a call from Kotak Mahindra, one nicknamed Saravanan or Sathya may call. He seems to have said to my client that he is an advocate.  But, the way he sounds like, he must be a 12th fail crap and doesn’t know any human behaviors.

This guy must be from one of the Agents of Kotak Mahindra. Kota Mahindra seemed to have given excess powers that are being used by the rowdy like recovery agents of banks.

My client, a women 45 years having 2 children and working as a paralegal in a firm, she received so many calls from different numbers.  She had a personal loan in ICICI Bank 8 years back, and in 2011 a bank executive came and collected Rs 10000 as cash as a final settlement against 18000/-total outstanding. So, she concluded that the loan was over. She had no updates or communications thereafter.

But, about a month back someone was trying her mobile number, she had returned their call by a landline number from her office. Thereafter, that person not disclosing any details about him, bank, or office address seems, but made 100s of calls every day, to harass to a large extent and driven her to a depression state.

Later, he seems to have searched Google.com and tried to gather past employers, contacted my ex-colleagues, existing employer website, and called her branches, branch managers to find the email address find the email. Mr.Saravanan’s only task is to get email ID’s so he would pass it to the bank, maybe he seems to be getting some fixed charges for collecting every email. So to serve my client,

I asked him which bank or agent are you calling from?

He said I am from Kotak Mahindra, his name is Saravanan he said the loan was taken from Citi financials and Kotak has taken over city financials.

I asked, why don’t you address it legally. Why are you disturbing a lady?

In reply, he said that the borrower should go and beg in the temple, rather than not paying her loan. I was stunned to listen to his words, I really wonder, a follow-up executive from where does he gets such rights to curse poor women? Also, he said, does she eat food or anything else?

When I asked him, you are exceeding the duty given to you. I asked for his branch name and address so that I can come and meet?

Without disclosing any information, he said that the borrower is a Christian. And she has an outstanding of 1 lakh 30 thousand. I am really stunned and shattered to listen to such excess power and words used by the agent, using the powers given by the Ministry of Finance.

This kind of harassment and atrocity faced by millions of people every day. Who might have took some loan for some of the other purpose, many of them may be facing real difficulties in hard economy, but the way the executive using words and poking on to the internet and trying to web ex-colleagues and branch office numbers to track to the borrower is nothing but an act of violating the fundamental rights of citizens in the name loan recovery.

I have called the cybercrime police and explained the attitude and approach followed by the agent and threatening a poor lady. But the Cybercrime said that the lady has to go to the Commissioner office and give a complaint. It is an unwarranted task that a woman to go police station and make a complaint. Even otherwise, it’s a sad state to know that the bank is not acting legally, instead of sharing the borrower’s numbers to numerous agents and creating a mental agony for the citizens. I wonder, are our Indian citizens are that cheap to be threatened like that?

Therefore, my conclusion, in general, is that the Department Banking Division should interfere in the matter and shall give notification to cease such actions by banks, and a central contact number for support.

Disclaimer: Above content is my personal and individual opinion and it is not a piece of legal advice.