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Legal Needs [This Network is not currently active and cannot accept new posts] | | Topics
[Discussion] Debt CollectionViews: 108
Oct 09, 2008 6:56 am [Discussion] Debt Collection

SOEB FATEHI
Thanks Vijay.

I will proceed now to explain why the thoughts presented by me will ultimately support Vijay's contentions without disregarding Ritu's concern . . . .

If the lending is ethical inasmuch that it is "humane" in conditions of repayment then many problems from which Vijay seeks protection shall go away anyways.

If the lending is on equitable terms with a clear understanding of risks by the lender then many problems from which Vijay seeks protection shall go away anyways.

On the other hand if the lending is of a nature that it enslaves the borrower (pathani = usury) then it is sure to result in difficulties in repayment by the borrower.

Any difficulty in repayment by the borrower results in anger at the lender's end. More so when the intent of lending was to generate high profit without willingness to risk in the first place.

This anger (include accountability for managers of the lending institution) leads to the deployment of swift and effective measures without regard to the legal correctness or ethical position.

Strict enforceable directives as suggested by Vijay must be balanced by strict enforceable norms on borrowing and lending in the first place.

If one must (personally i say one must not) borrow and lend then one must do it with full cognizance of the applicable law.

Generally the forms sent by the banks for signature are sent with uneducated courier boys who are in no position to explain the clauses written down. Even before that the tele sales agents who call have no clue about the correct information they should compulsorily be giving out. The tele agents are supposedly not authorized to pass the call to their senior officers (equally ignorant but more impertinent) when desired by the clients. Their call center training is limited to saying, "absolutely" twice when a simple grammatically correct, "yes" said once should have sufficed. The less said the better about the quality of the photocopy sent to the client and the fineness of the print and font. The failure of the lending bodies gets compounded by the fact that duplicate and extra copies are not sent and the client is forced to overwrite to correct mistakes and cannot retain a copy of what he signs and submits. In cases copies are demanded they are promised but never sent by courier subsequently. Therefore i submit that before opining on recovery RBI and other powers that be must institute an enforcing mechanism for all in the paragraph.

The borrower because of his weak habits and weaker knowledge of the subject cannot get away on grounds of innocence and ignorance. The borrower must get all the clauses explained and understood by him (and his consultant if the extent and nature of his risks warrants). Thereafter he must take a judicious decision on whether to borrow and on what terms. He must negotiate terms to suit himself and finally sign only what he is willing to commit himself to. Once he signs he must be prepared for the consequences of his actions. He must in extreme cases learn and employ the provisions of the law including the right to make to first move for legal recourse for extension of repayment terms and relief in penalties and interest. In addition he must also employ the powerful tool of bankruptcy declaration if needed though highly undesirable personally and socially and therefore avoided till the choice is limited to nil. To allow and encourage the client to use all his gyan again the onus is on the RBI and other powers that be to create the right mechanisms to safeguard the personal life and well being of all borrowers from irreparable harm. In this i agree with Vijay again in his approach to protect the frequently hapless borrowers.

I trust this discussion shall progress as desired by the owner of the thread.















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