Telangana: Loan recovery agents harass customers at behest of banks

Hyderabad: How the third parties engaged in the loan recovery process are encouraged in harassing the bank customers? The issue assumes significance following the Cyberabad Police finding how the third-party firms entered into agreements with the Non-Banking Finance Companies taking people for a ride.

If cases are of any indication, rampant violations are taking as banks fail to ensure strict implementation of paragraph 6 of the 'Code of Banks Commitment to Customers' (BCSBI Code). Also, a series of guidelines issued by the apex banking regulator.

Speaking to The Hans India, Telangana Part-time Arts and Crafts Teachers Association president K Krishna Hari pointed out specific issues resulting in several part-time teachers facing problems with the payment and recovery issues due to non-payment of salaries in the last eight months.

The Telangana Private Teachers Forum president Shabbir Ali pointed out some schools were paying only 1/4 or 1/2 of salaries agreed upon at the time of appointment. Besides, the school managements were not following any salary disbursement cycle- citing that they have not yet collected fee from the students.

Against this backdrop, both the school teachers and lecturers working in the educational institutions complain that they are not in a position to comply with the dates of the billing cycle unilaterally decided by the banks for payment of dues at their discretion. This makes the restructuring relief given announced by the Centre and RBI redundant.

Lakshmi Narayana, a faculty member working in a private engineering college said, "The bank decided that I have to clear my EMI (after restructuring) on the third day of every month. I requested for rescheduling of EMI date to 15th day of every month. But, it was rejected."

This situation is making Lakshmi Narayana remain a regular delay-payer and even defaulter.

"Every day or alternative day, the recovery agents from numerous even anonymous telephone and mobile numbers have been calling to mount pressure. I have to take leave for two days from taking online classes due to the pressure mounted by them," said Pratibha, another school teacher. All these happenings are boiling down to the teachers to go for taking loans to wherever possible to get out of the pressure. But, it is only temporary relief and it would resume from the first of every month, Lakshmi Narayana added.

When asked Regional Manager of a public sector bank, he said that the Master Circular-32 issued by the RBI on July 2007 covers the norms need to be followed in the case of credit cards by the banks and the recovery agents. The RBI has also issued different circulars on how to deal with the customers as part of the recovery process.

Regarding loans, Paragraph 6 of the 'Code of Bank's Commitment to Customers' (BCSBI Code) speaks of the collection of dues. And, banks are advised to strictly adhere to the guidelines.

The RBI had requested the banks to provide proper training to the recovery agents to handle their duties properly and with sensitivity. Particularly, regarding calling hours, privacy of customer information among others.

"But, the teachers and lecturers facing problems with the third party recovery firms, call centres, and their agents complain of being chased on their WhatsApp and other social media handles," pointed out Srikanth Reddy.

Earlier, the RBI asked the banks to ensure the Director Recovery Agents undergo 100 hours minimum course offered by the Indian Institute of Banking and Finance (IIBF). Appoint only who have IIBF certificate to undergo a one-year training as the recovery agents.

But, given the current scenario of complaints received by the police, the banks and NBFCs are failing to ensure that the third parties engaged for the recovery of dues are complying with the RBI guidelines and circulars.