1 USE OF FORCE BY BANKS
I do agree that,use of force to recover loans is not desirable banking practice.The term banking means accepting deposits from public for the purpose of lending in a profitable manner.When banks asset becomes NPA banks fails to recover it by soft skill like public notices, legal notice ,it may be permitted to use trained,skilled recovery agents with the prior permission of higher banks officials . After all its public money ,bank has every right to recover its assets. But, rampet use of recovery agents should be banned,it is not desirable in any financilal system and also crital to the brand image of the Banks.Before sanctioning of any loan Banks should analyse its creditwotiness to avoid auch type of situation. Checking for credit worthiness is not enough at all times. What if I earn enough now but fall into difficult financial times during the time I am paying off a loan/due? Medical bills run into lakhs, so can a loss in business or even a job cut. I am NOT talking of INTENTIONAL defaults here. What can "good credit worthy" customers do when they fall into bad times? Credit cards etc only spiral the total dues. If a cstomer cannot pay, there are late fees, finance charges, overlimit charges, service charge etc. That is not all. There is even a service charge for adding late fee to the a/c. What can a person do in such a situation? There are no facilities where a customer can request for a period of relief from paying back loans/credit dues. I have not come across a single bank in India which has such a relief period. No creditor in the United States can force you to pay a debt. A creditor can, however, appeal to the legal system, which can then force you to pay. The legal methods a bank can use to recover a debt from you against your will include foreclosure, repossession and wage garnisheement. Opting not to pay a debt can also have other repercussions such as having negative notations appear on your credit file.
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