[maxbhp]

Some time back when I was in ICICI bank waiting to deposit a cheque in an Ebay seller's account ,a guy barged inside the bank and threw a sac like bag at the receptionist and started off with " !@#$%^&&*%#@$%^&%#@$$%%^&& " , So basically every one was deaf for a moment and when he finally stopped the security people came in (two guys) and tried stopping the guy . any way it was pakka filmi style and the guy was dark and huge . Then he shouted at the receptionist for the manager and finally this guy started with the reason for the outbreak . It seems the guy had taken a loan for a 270 CDI and his check bounced twice , and apparently for that the collection agents contacted his res.no and since his wife had attended the call they spoke to her very rudely/indecently. Anyway after saying all this the guy caught the manager's neck and demanded for the person who had called at his house to be brought before him . Anyway the point is they messed up with the wrong people . And the whole scene was so much movie like .

[phamilyman]

Shame on ICICI. Makes me happier that I have successfully resisted opening my salary account with ICICI. Driving someone to suicide for a 50k loan?!

They are just polished versions of the dreaded sahukars of old time. argghhhh.

[vivekiny2k]

when these guys call for giving loans, let's insist on talking to the collecttion agencies first, pointing out specially the ones involved in such incidents.

[GTO]

Originally Posted by typeOnegative

I am not too big a fan of the big I. But, tell me, what does a bank do to recover the money?

I would say - don't lend. But put yourselves in their shoes. The sales guy got his commission, but the bank has lost money. Maybe the government should insist on stringent checks before lending. I don't know.

What the bank can do is take a legal recourse!! Cheque bounce cases are solved anywhere between 2 - 6 months and believe you me, the courts implement very stringent action. If we have such efficiency from the cheque-bouncing laws, why not take advantage of it?

All of us who are self-employed / into business have bad debts. Thats the cost of doing business and you better accept it and factor it into your working capital etc. But do we go around hounding people, hiring goondas and driving our clients to suicide. No ways. I'd like to think that the ICICI management missed their "Ethics 101" class during their MBA. And this is certainly not the first time.....which other rascal of a bank has been reported on Team-BHP / press ever so often for their misdeeds?

[Samurai]

My father-in-law used to run a finance business in the 80-90s. Needless to say half his loan customers used to default. He used to follow the law, sue them and in most cases managed to get his money back by having the court attach the property of the customers. He never had to resort to goondagiri, not that he could. When small time money lendors like him could do it, what's stopping the banks from doing it? They want fast results, that is something courts don't provide.

Edit: After some initial experiences, he become selective about his loan customers. ICICI on the other hand gives loans to anybody who walks in or walks by their office. Therefore their recovery methods are designed based on their worst dead-beat customers, but used on all customers.

[Venkatesh.C]

I guess the government is equally to blame. Toothless laws do not empower banks to pull up defaulters and sue them. Thats why they resort to these tactics. Why does the press not do a sting operation on this? Legal system should be strengthened to honour IOUs Or am i wrong? People who know the law shed some light pls

[mik5711]

Guys , i would like to bring it to your notice that inspite of the fact that somebody defaults paying their emi the bank actually does not lose-confusing right.let me explain how.whatever the category of loan it may be for ex.car or housing or jewel or personal loan the delinquency rate i.e the percentage of defaults in that particular category is already caculated and to cover that loss the interest is jackedup.the people who are paying their emi properly are also paying for covering the defaults.in effect if everybody who ever took alone pay it back in full the bank actually makes extra money-a bonus.
to further explain.take for example car loans .icici bank might have different default rates in different parts of the country for ex. north people might default more than south but the interest rate is set in such a manner that prompt payments from the south will cover the loss created by the defaults in the north.IN EFFECT NO BANK EVER LOSES BECAUSE ITS ALREADY BEEN TAKE CARE OF BY CLEVER CALCULATIONS. it may be unbeleivable but it is the truth. Next time you take a loan and if you have a good track record for repayment ,bargain hard on the rate you are getting since you will be paying for somebodyelses default.

[Sam Kapasi]

oh this is truly terrible! All of that for a few thousand rupees!

[Venkatesh.C]

Wow! Guess Banks are capable of doing such things. Its really scary! Do the banks default to Goondagiri as the first thing or is it only when people dont respond properly to decent reminders to pay up or letters do they resort to such tactics?
I dont think ICICI or any such bank would be so insensible to not give a benefit of doubt for the customer right?

Originally Posted by mik5711

Guys , i would like to bring it to your notice that inspite of the fact that somebody defaults paying their emi the bank actually does not lose-confusing right.let me explain how.whatever the category of loan it may be for ex.car or housing or jewel or personal loan the delinquency rate i.e the percentage of defaults in that particular category is already caculated and to cover that loss the interest is jackedup.the people who are paying their emi properly are also paying for covering the defaults.in effect if everybody who ever took alone pay it back in full the bank actually makes extra money-a bonus.
to further explain.take for example car loans .icici bank might have different default rates in different parts of the country for ex. north people might default more than south but the interest rate is set in such a manner that prompt payments from the south will cover the loss created by the defaults in the north.IN EFFECT NO BANK EVER LOSES BECAUSE ITS ALREADY BEEN TAKE CARE OF BY CLEVER CALCULATIONS. it may be unbeleivable but it is the truth. Next time you take a loan and if you have a good track record for repayment ,bargain hard on the rate you are getting since you will be paying for somebodyelses default.

[alcam]

ICICI is very aggressive in extending loans and yes .. as it was rightly pointed out ... the Top managment should be made responsible as it they who decide as to what will be the increase in the loans div will be . On the other hand they dont want thier balance sheet to carry a lot of NPA's.... end result.. loss of life...
There should be a ban on recovery agents ( there is some direcetive from the Supreme Court on that i believe..) and banks following the practice should be closed.
Hopefully...more lives will not be lost....
Its shameful...

[bblost]

Update:
Moneycontrol India :: News :: ICICI Bk gives Rs 15L to suicide victim's family :: :: Business :: Prakash Sarvankar,ICICI Bank ,Vinod Chand, General Secretary, Credit Consumers Association of India.,Banking Codes and Standards Board of India,BCSBI,col

ICICI compensates families of loan defaulters

[typeOnegative]

Originally Posted by GTO

What the bank can do is take ...........which other rascal of a bank has been reported on Team-BHP / press ever so often for their misdeeds?

No doubt Rushabh. But think about it, in a large organization what else do you expect? The point is that just like the RBI has to step in to correct too much disbursement of money for housing loans, the government has to step in as well.

If you can have strict KYC rules for financial transactions, should not there be controls on unrestricted lending with respect to 'personal' loans. Especially by such an 'impersonal' entity, 'Hum aapke saath hain' claims not withstanding.

[caliper]

Did you notice the way that the recovery agents are contractors of ICICI Bank, and not employees? They do that on purpose so that the bank can claim "these were not ICICI employees, we are not responsible". However, the bank should still be held responsible, and an FIR for abetment to suicide should be entered with the officers of the bank named as co-defendants.

[rkg]

as per news reports today one HDFC loan recovery branch manager and two more agents were arrested by police for harassing a person. it seems the guy asked for 5K loan and hdfc sent 15K. he returned 10K immediately but HDFC keep on harassing him to pay full 15K. as per the report it seems he already paid 46K still these guys are threating him and his wife. this came in TOI, banaglore ed. it seems it happened in mumbai

[rkg]

the link to the story

Manager, 2 held for hounding borrower-Mumbai-Cities-The Times of India