Regulating loan recovery
In an earlier post, Mansoor highlighted the issue of banks using brute force to recover consumer bank loans and leased cars from defaulters. The Banking Ombudsman, in its second annual report, has finally brought this to the attention of the State Bank of Pakistan. In the report, SBP has been directed to to regulate private loan recovery agencies that are found to use crude and ruthless tactics and against whom the complaints from small borrowers are increasing.
It is yet to be seen if the “Fair Debt Collection Practices Act” suggested in the report brings any relief to the consumers who was earlier exploited by commercial banks by alluring them towards consumer finance knowing well that the loan cannot be recovered.
Related posts:
- Suicide caused by harassment of loan recovery staff
- loan recovery methods
- Bank robberies
- Banking woes
- Write offs?
