Personal loan not paid for 4 months
sally
(Querist) 14 December 2013
This query is : Resolved
I have taken a personal loan from babaj finance for 170,000 and later came to realize that I was paying an interest of 32%, the tenure is 36 months from feb 2013 to sep 2014, I have paid continuous for 16 months and for the past four months due to a problem with my employer I was not able to pay my emi, the bank people have used given me mental torture, public nuisance to my neighbours and behavioral harassment to me and my family, Please advise what can be done....I am a lady
V R SHROFF
(Expert) 14 December 2013
Personally meet Balaji Fin & ask not to harass u.
If no effect, issue legal notice
BAALASUBRAMANNYAMM
(Expert) 14 December 2013
There are so many peoples are taking personal loans and where the banks are also giving such loans to every body, but in case if the Lonee fails to pay any such of EMIs, they will hand over the file to his recovery agents and thereby the recovery agents, to their utmost extent, have acted by using all these illegal acts with a view to collect money. The Lonee is on several reasons, have not being paid the EMIs and thereby ultimately facing lot of problems. and then they are searching for legal solutions. This is too much on account of banks and as well as the Lonees also. So plz. beware before taking such personal loans.
Agreed with the expert.
Rajendra K Goyal
(Expert) 14 December 2013
RBI has issued guidelines for recovery agents.
Reference can be noted as under:
Master Circular- Loans and Advances – Statutory and Other Restrictions RBI/2013-14/76 DBOD.No.Dir.BC.14/13.03.00/2013-14, July 1, 2013
Methods followed by Recovery Agents
(ix) A reference is invited to (a) Circular DBOD.Leg.No.BC.104/ 09.07.007 /2002-03 dated May 5, 2003 regarding Guidelines on Fair Practices Code for Lenders (b) Circular DBOD.No.BP. 40/ 21.04.158/ 2006-07 dated November 3, 2006 regarding outsourcing of financial services and (c) Master Circular DBOD.FSD.BC.17/ 24.01.011/2007-08 dated July 2, 2007 on Credit Card Operations. Further, a reference is also invited to paragraph 6 of the "Code of Bank's Commitment to Customers" (BCSBI Code) pertaining to collection of dues. Banks are advised to strictly adhere to the guidelines / code mentioned above during the loan recovery process.
Guidelines on Fair Practices Code for NBFCs – Grievance Redressal Mechanism - Nodal Officer RBI/ DNBS.CC.PD.No.320/ 03.10.01 /2012-13 dated February 18, 2013
(v) The Board of Directors of NBFCs should also lay down the appropriate grievance redressal mechanism within the organization to resolve disputes arising in this regard. Such a mechanism should ensure that all disputes arising out of the decisions of lending institutions' functionaries are heard and disposed of at least at the next higher level. The Board of Directors should also provide for periodical review of the compliance of the Fair Practices Code and the functioning of the grievances redressal mechanism at various levels of management. A consolidated report of such reviews may be submitted to the Board at regular intervals, as may be prescribed by it.
(vi) At the operational level, all NBFCs have to display the following information prominently, for the benefit of their customers, at their branches / places where business is transacted:
• the name and contact details (Telephone / Mobile nos. as also email address) of the Grievance Redressal Officer who can be approached by the public for resolution of complaints against the Company.
• If the complaint / dispute is not redressed within a period of one month, the customer may appeal to the Officer-in-Charge of the Regional Office of DNBS of RBI (complete contact details), under whose jurisdiction the registered office of the NBFC falls.
In short, the public notice should serve the purpose of highlighting to the customers, the grievance redressal mechanism followed by the company, together with details of the grievance redressal officer and of the Regional Office of the RBI.
You should issue notice and lodge complaint to their Head Office with copy to RBI.
ajay sethi
(Expert) 14 December 2013
well advised by experts
Nadeem Qureshi
(Expert) 14 December 2013
nothing left to add, agree with exp
Raj Kumar Makkad
(Expert) 14 December 2013
I have also the similar opinion as of the experts.
sally
(Querist) 14 December 2013
Thankyou for the help, I want to know if they would do any physical or abusive harassment against me and my family and would they put me in jail
Guest
(Expert) 14 December 2013
Dear Ms. Sally,
Any default continuing for 3 months or more is treated as the non-performing asset of the banking/ finance company. The matter gets reported to the CIBIL, as defaulter/ bad debtor. That affects the credit rating of the defauter, which becomes hurdle in getting further loan from any bank/ finance company. So, to avoid bad credit rating by the CIBIL, my advice is to better repay the loan somehow or the other and get your record smoothend to help you get loan from some other bank/finance company. That may also save you from further harassment by the company's collecting agents.
Also don't try to become a defaulter in future for the betterment of your credit rating.
sally
(Querist) 14 December 2013
Thankyou sir well said
Guest
(Expert) 14 December 2013
You are welcome.
Kumar Doab
(Expert) 14 December 2013
As suggested by Shri Rajendera K Goyal you can download the Officer-in-Charge of the Regional Office of DNBS of RBI (complete contact details).
While you escalate mark a copy to:
Smt. Uma Subramaniam
Chief General Manager -in-Charge
Department of Non-Banking Supervision
Central Office
Centre I, World Trade Centre, Cuffe Parade
Mumbai-400 005.
Phone: 022-22153350
Email id: cgmicdnbsco@rbi.org.in
THE DETAILED DUTIES OF DNBS CAN BE SEEN AT:
( DNBS: Dept. of Non banking Services)
http://www.rbi.org.in/scriptts/AboutUsDisplay.aspx?pg=Depts.htm#DNBS
Supreme Court of India has delivered judgments on the menace of recovery agents and its masters in Banks...................
RBI has issued guidelines. RBI is central Bank and its guidelines have statutory force.
NO bank, NBFC can violate.
The harassment by recovery agents has been discussed in detail in many threads e.g;
http://www.lawyersclubindia.com/forum/Harrasment-by-icici-banks-recovery-agents-76271.asp#.UqxvYtIW1MA
You can also download the judgments of Supreme Court of India attached in this thread.
It shall be appropriate to record (video) the conduct of recovery agents.
Kindly take it positively.
If one borrows one should pay.
T. Kalaiselvan, Advocate
(Expert) 14 December 2013
though there is no more thing to add, I appreciate the last line of Mr. Kumar Daob:
If one borrows one should pay. This conveys some meaning.
Guest
(Expert) 15 December 2013
Well advised by All the Experts.I would prefer to inform one incident.Recently near my place Husband was the borrower and one day in his absence that too during early morning these Recovery Agents created scenes in the house and wife committed suicide.Even the Police act as Sub Agents of Recovery Agents and deal the clients in very harsh manner.Many times I had to visit Police station for this.After taking the borrowers to the police station both agents and police starts harassing them for money without filing any case.Most of the Recovery Agents are History Sheeters and they come with the help of local politicians and sorry to say few advocates also.I dont understand how they find time for all this during court hours.They should be treated as employed and not allowed to practice.The worse part is even for mobile bill collections the advocates are hired
R.K Nanda
(Expert) 15 December 2013
agree with experts.
Kumar Doab
(Expert) 15 December 2013
@ Mr. Narasimha,
The incidence quoted by you is highly disturbing and perturbing.
Few people and few entities learn only the hard way.
In particular instance pointed out by you the offenders will learn only the hardest way.
The institution of media, NGO’s, political parties (other than of politicians involved), National Heads of the political parties of the politicians involved , women commission, Social workers, and any other that comes to the mind, should be approached.
Matter should be sent to Chief Justice of High Court, Chief Justice of Supreme Court of India, after all courts are 'Parent to the Nation' and courts are not helpless.
Governor RBI should be reminded of his duty and responsibility to act and cancel the license of the bank and proceed to put the culprit bankers behind bars or quit his office.
The conduct and offence is unpardonable.
Another citizen committed suicide and police and politician is conniving with history sheeters and banks....................!!!!!!
In the thread pointed out above the Supreme Court judgments in similar incidences is attached:
http://www.lawyersclubindia.com/forum/Harrasment-by-icici-banks-recovery-agents-76271.asp#.Uq1bDtIW1MB
>> Manager, Icici Bank Ltd vs Prakash Kaur & Ors on 26 February, 2007
(http://indiankanoon.org/doc/819703/)
>> Icici Bank vs Shanti Devi Sharma & Others on 15 May, 2008 (http://indiankanoon.org/doc/1515197/)
You may also go thru:
>>
--Consumer Disputes Redressal Commission
"Awaz", Punita Society, "Jagrut ... vs Reserve Bank Of India And Ors. on 7 July, 2008
http://indiankanoon.org/doc/868342/?type=print
--Consumer Disputes Redressal Commission
Awaz And Ors. vs Reserve Bank Of India And Ors. on 24 October, 2007
http://indiankanoon.org/doc/1005419/?type=print
And the following should also be useful.
----
NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
NEW DELHI
CONSUMER COMPLAINT NO. 51 OF 2007
Awaz and Others … Complainant
Versus
Reserve Bank of India & Ors. … Opposite Parties
REVISION PETITION NO. 1913 OF 2004
(from the order dated 06.05.2004 in A No.1706 of 2003 of the State Commission, Madhya Pradesh)
D C M Financial Services Ltd … Petitioner
Versus
Mukesh Rajput and Another … Respondent
http://ncdrc.nic.in/CC512007.htm
>> RBI : Master Circular on Credit Card Operations of Banks
http://www.lawyersclubindia.com/forum/files/934718826_master%20ciculrar%20on%20credit%20card%20opration%20year%202012%20%2071mccco300612.pdf
>> Determined customers have been contemplating to file Writ to cancel the license of the bank/NBFC.
http://www.lawyersclubindia.com/forum/Writ-petition-reserve-bank-of-india-76323.asp#.Uq1fftIW1MB
Such history sheeters and others be it any one or any body can’t stand in front of fury of public.
It has been seen not once but many times and it shall continue to happen...................................
Don’t want to quote but the offenders have been subjected to ‘Chitter Pared’.........................
Guest
(Expert) 15 December 2013
Thank you sirs We are following it up and your guidance would be very useful and would seek it
T. Kalaiselvan, Advocate
(Expert) 19 December 2013
Expert Mr. Kumar Daob's advice and tips are very useful and appreciable, thank you sir for your valuable advises.
R.V.RAO
(Expert) 16 March 2014
the queriest may
1.) address the lenders HEad office as advised
2.) send e mail at the RBI mumbai e mail id above and also write to RBI in detail.
3.) ask the nbfc to give more time to repay/ reschedule /give moratorium on the loan.
4.) as shakespeare said,neither a lender nor a borrower be in future as far as possible.
5.)follow up regularly on whatever correspondence you start now with RBI grievance mechanism/public grievance cells.
