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17th November 2011, 19:58 | #16 | |
Distinguished - BHPian | Re: Finance companies cannot forcibly take possession of loan-default vehicles Quote:
So what are you saying? that a) its alright for banks to break the very law that defines their recourse. b) treat genuine cases of default with the same violence as the chronic defaulters, whose sole purpose of the loan was to default on it, and who SHOULD havebeen, and could easily have been tapped out beforehand by the bank itself? wow. | |
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17th November 2011, 20:18 | #17 |
BHPian Join Date: Nov 2011 Location: Mumbai
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| Re: Finance companies cannot forcibly take possession of loan-default vehicles I think there is CIBIL for maintaing the credit reports for each and every person. If you default u are reported to CIBIL and your credit score decreases. Inspite of the fact that the person has a low credit rating and you give him a loan for a particular amount that is not right on the banks part. My friend got a CC from CITI bank when he was a student and his limit was 90K. So when he defaulted on the payments they started calling and harassing him for the repayment. Agreed that he should not have taken the card in the first place but the BANK was wrong in issuing the card to him. So the laws for lending money should be made more stringent. If that is done, than number of defaulters will be less and so resorting to GOONDA GIRI for recovering the loans will stop. This is all a circle who started it? THE BANK?INSTITUTION that gave the money. Till the laws become more stringent I think this way of collecting money should be tolerated... And if you do not like the method than please do not default on the loan or never take a loan in the first place... |
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17th November 2011, 20:25 | #18 | |
BHPian Join Date: Aug 2009 Location: Bangalore
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| Re: Finance companies cannot forcibly take possession of loan-default vehicles Quote:
In my Case, I am willing to clear my dues to the Bank. I am aware of the fact that since I have taken the Loan, I have to pay. But circumstances made me to default. Now I am financially better, I am willing to repay in EMI, but not in a position to pay the entire loan in one single payment So as per your view, if a person is in hospital / at home, goons can come, bash up and threaten with dire consequences? Banks should decide whether the person is deliberately defaulting or not and give an opportunity to genuine case to clear the dues. | |
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17th November 2011, 20:33 | #19 | |
Senior - BHPian Join Date: Nov 2007 Location: Chennai
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| Re: Finance companies cannot forcibly take possession of loan-default vehicles Quote:
Imagine you are a banker. Well, I do not say that it is good on the bank's part to use force. What other options do the bank have. Indian Judiciary and Police are so efficient that it would take 10 years for this case to be closed. Assume a bank put a case on soemone who has taken a pulsar loan and not paid 30,000. At the end of 10 years, when a judgement is passed, what value will a 2010 pulsar have or what value will 30,000/- have. Even if the judiciary asks the defaulter to pay up or surrender the vehicle, What benefit does the bank have ? b) treat genuine cases of default with the same violence as the chronic defaulters Defaulter is a defaulter, be it whoever. Do not take a loan if you cannot repay the same. If a thief ransoms you and with the money he funds his food / uses the money for Mafia / buys a merc :-: do you really care ? All you care is that your wallet is lighter. The same way, why should the bank care on why you defaulted. Take my example. I can get an innova's loan sanctioned today, but as i have to run my family with my salary, i cannot pay off the emi. This is the reason i am not buying an innova as of now.You must pay the emi come what may or be prepared to fore-go the security on the loan. This attidue is that of a Gentleman. | |
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17th November 2011, 21:08 | #20 | |
BHPian Join Date: Feb 2008 Location: Kochi
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| Re: Finance companies cannot forcibly take possession of loan-default vehicles Quote:
And the issue of "sitting & sorting" it out, you may be knowing very well that: a) many managers have no authority to do it; b) if they are so authorized and do it, it would reflect poorly on their performance targets; c) most companies (though not all) have different channels for marketing loans, doing appraisal/ verification, to collect the EMI's and to recover NPAs, thus rendering it impossible to entertain such requests. On "exigencies", how do my other debtors treat me? If I am away, or in the hospital, does the government owned utility excuse my power/ water/ phone bill? Or the Income Tax department offer me a deferred tax payment? Then why should my creditors be asked to forget and forgive, or wait endlessly? On "overcharging interest/levies or hidden charges", since most of the payments are done against cheques or similar methods, it is highly improbable that one doesn't know what one is ought to pay. Whatever in the contract I signed is binding, unless it is ab initio void as per law. And may I ask, how many of these "forceful recoveries" are over such disputes? Aren't they mostly over simple non- payment of EMI's? If I owe only 2 lacs, and my vehicle is worth 8 lacs, I am entitled to the balance amount from the financier after whatever money is due to him. Whether I get it is another matter. Finance companies are greedy when it comes to such things. But remember, it happens only if I default on my EMI. It doesn't occur overnight. If I can't find enough money, I can always sell off the car before the bank gets me by the throat, am I right? Just think, why would I throw away my 8lac car which I paid 3L form my loan for just 2L? Repay the loan, or sell it while I still can, and everyone is happy! So as a responsible family man, I should protect my family and set example to my kids by keeping my promise, and not subjecting them to the shame of being the child, spouse, or parent of a delinquent who cannot even afford the EMI of the car in which I drive them around? Regarding the missing accessories, you are definitely right. The recovery agents have no right whatsoever to tamper with them. But as you might very well know, even vehicles taken into custody by the police for some reason or other tends to be vandalised even when kept in the station yard. It is a cultural problem. People steal from even vehicles involved in accidents while passengers are taken to hospital. On "unscrupulous ways", isn't willful default on the money I owe to somebody else equally unscrupulous? And "money mongers" only ask for the money I borrowed from them, and the interest I agreed, right? The court of course, said nothing wrong. But see:"...appeals are disposed of in light of the observations made hereinabove." What purpose other than bringing about chaos? What did the petitioner gain? Is this a landmark judgement by any yardstick? The court rightfully asked the banks to keep away from taking law into their own hands, and utilize the legally settled way to recourse. But what is the media reporting, and what are we discussing on this thread? It sounds more like "banks cannot seize vehicles for recovering defaulted loans", or something very similar. You get what I try to say? Last edited by Yeldo : 17th November 2011 at 21:10. | |
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17th November 2011, 21:39 | #21 | |
Senior - BHPian Join Date: Nov 2007 Location: Chennai
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| Re: Finance companies cannot forcibly take possession of loan-default vehicles Quote:
The consideration that you have mentioned exists in US. If you are a defaulter, there is a clause which can prevent you from getting a bad credit rating. If they start considering defaulters in india, almost everyone will start applying for waive off by giving some excuse or the other. This is the reason banks dont tolerate defaulters. (Geniune cases like yours exempted). Imagine the corollary of this issue. If your company could not pay you salary for 6 months for any reason, be it the CEO mismanged the funds / company did not do well / new business was not acquired etc - do you care ? all you care is salary was not credited. In india the average joe looks to cheat and make a fast buck. In such a country, banks have to be rigid to collect money. But because of that so called cheaters, we honest citizens have to bear the brunt. This is similar to Petrol/diesel scenario. A two wheeler rider is subsidizing the diesel for a Merc/BMW/Audi Last edited by scopriobharath : 17th November 2011 at 21:52. | |
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17th November 2011, 21:59 | #22 | |
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| Re: Finance companies cannot forcibly take possession of loan-default vehicles Quote:
With the turnaround time that court offers, the bank would go bankrupt. If indian judiciary was as efficient and fast as the judiciary in the far west, People would jolly-well go to the judiciary only. If the judiciary was fast and just, banks will take this route. As judiciary is slow, banks take law into their own hands. | |
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17th November 2011, 22:53 | #23 | |
BHPian Join Date: Apr 2011 Location: Patiala
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| Re: Finance companies cannot forcibly take possession of loan-default vehicles Quote:
And do they lead the market...NO. Its still the nationalized banks who go by the book, not only while recovering but also while lending... Tell me how many have gone bankrupt.. | |
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17th November 2011, 22:59 | #24 |
Distinguished - BHPian | So,tomorrow if my car gets broken into,I should get a batsuit and take to the streets? Cos I know that the judiciary is slow and i want order ,what,yesterday ? I don't know whether what is being professed is funny,or scary. |
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17th November 2011, 23:02 | #25 | |
Senior - BHPian | Re: Finance companies cannot forcibly take possession of loan-default vehicles Quote:
Last edited by sdp1975 : 17th November 2011 at 23:06. | |
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17th November 2011, 23:04 | #26 | |
BHPian Join Date: Apr 2011 Location: Patiala
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| Re: Finance companies cannot forcibly take possession of loan-default vehicles Quote:
You should approach Consumer Forum of your District with the plea that you are ready & willing to deposit the EMIs due but the bank isn't budging. I'm sure, once the Consumer Forum summons are received by the bank, they'll come to senses. If they try anything silly, you have got the Supreme Court rulings with you & don't think twice to lodge an FIR with police. But don't ever resort to such arm-twisting to avoid your liability thereafter, thereby showing respect to the law & propriety, being a responsible citizen | |
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17th November 2011, 23:13 | #27 |
BHPian Join Date: Jul 2004 Location: Pune
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| Re: Finance companies cannot forcibly take possession of loan-default vehicles I don't see whats the problem here. Vehicle loans is a highly profitable business and like all businesses there is a risk. Its the banks job to manage the risk and business lawfully. The supreme court is not asking them to not seek repossession, only do it by lawful means. What's wrong with that? Slow courts cannot be an excuse to resort to illegal methods, that will be a justification for everyone doing their own thing. My ancestral home has been forcefully occupied by 'party workers' in a communist ruled state and the process is ongoing in courts for the last 15 years, there are thousands of examples where the loss is more than just financial because of our court system. If there is a problem in the process fix that. Why should banks only get a free pass to sidestep the law? There must have been some cases of the court seeing high handedness on the banks part that the court feels the need to pass this order and rein them in to operate within the bounds of the law. On the contrary in our system and slow courts process, often because of time, influence and resources its the companies rather than individual that prevail and benefit. Last edited by raul : 17th November 2011 at 23:22. |
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18th November 2011, 10:26 | #28 | |
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| Re: Finance companies cannot forcibly take possession of loan-default vehicles Quote:
You should have taken the issue of the goons to the police. It is highly unethical and against all established laws for a creditor to harass a debtor in such a way. If the state you live in has a Money Lending Act, there should be provisions in it, unless the Act exempts Banks of Financial Institutions from its purview. Even if your bank is exempt, there is always the police who should act on such things. I don't know about your case, but most car loans have no provisions for restructuring your debt or accepting deferred EMIs. Read your contract. If it says nothing, you will hardly get any leeway from the financier or the courts. The problem is the prejudice (not without reason, I admit) that such leniency wouldn't benefit honest people, but would be exploited by unscrupulous elements. Finally, how inconsiderate it was for your spouse's company to terminate her for being involved in an accident? If they did that to her, who worked for them, and made profits for them, what leniency can you expect from a Shylock? GTO, thanks for your first post, and the link, I think this thread has now become a discussion on Unethical Lending & Irresponsible Borrowing! Last edited by Yeldo : 18th November 2011 at 10:35. | |
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18th November 2011, 18:04 | #29 |
Senior - BHPian Join Date: Apr 2006 Location: Indore
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| Re: Finance companies cannot forcibly take possession of loan-default vehicles I think this rule should be changed. if a vehicle's EMI hasn't been paid for a month, the vehicle should be confiscated, and the borrowers details should be circulated amongst all the banks. after the second month's default they should start closing all the accounts the borrower has in any bank. if this is not done, then basically all the goondas and mawalis (the usual roadside politician in making) around would start taking up loans on cars which they do not need and will end up not paying for it without the threat of the car being confiscated. this would just lead to higher rate of interests for all + extreme strict guidelines for giving a loan. mind you - it's not the politicians and goondas who need a loan to buy a car. it's the common man who would end up paying for this kind of a stupid rule. and in no way i am supporting the banks to use goons to recover money. there are other ways too. 1. keep a spare key with the bank. so if the vehicle's payment is not made - simply send someone to drive it off. 2. request the owner - if he doesn't listen - then involve the police. but police can not be involved each time (considering they would be busy catching the murderers and all and not petty thieves, and also for all we know they would be involved with these scams too) so the supreme court should allow some particular security agencies which can help in retrieving the vehicle if the defaulter is using muscle to stop the confiscation. Last edited by samyakmodi : 18th November 2011 at 18:10. |
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18th November 2011, 18:38 | #30 | |
Senior - BHPian Join Date: Apr 2006 Location: Indore
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| Re: Finance companies cannot forcibly take possession of loan-default vehicles Quote:
if they did not - then it's wrong on their part to send goons straight away. but if they did, and still you didn't pay, then you yourself should have taken the vehicle to the bank, spoken to some senior manager there, and request them to defer the payment and as a a collateral deposit your vehicle to them. please do accept my sincere apologies everyone who feels i am being too harsh here - with all due respect why take things that you can not afford in the first place? you can't afford it at one shot - that's the reason you take up a loan. then you can't afford to pay the emi - that's when the bank needs to take a tough stand. on what grounds are you protesting? i read somewhere in this thread about some guy getting a credit limit of 90k something. well i do agree that the bank should have been careful in giving the limit to the guy. but isn't it our duty too to be careful while spending money and to know what we can afford and what we can't? if we don't understand this small thing - then either we shouldn't take up loans OR if we do then be prepared to be harrowed everytime. forget banks. what will you do if someone borrows X amount from you, promising to return it to you in installments and then after a few months stop paying? would you be as nice to them after repeated reminders? what will you do if they stop responding to your calls? would you not go and visit them? what will you do if they threaten you? would you not take some muscle along with you to put them straight?? we all are ready to do it all, but not ready to accept if the same is done to us OR our family members. and please don't give me a guilt trip of family's safety and all. one should think about all this BEFORE spending the money OR taking the loan. i might be going a bit too off topic here - but i'll say it again - if you can't afford it, don't think of buying it. buy it only when you are sure you can afford it. | |
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