Suicide caused by harassment of loan recovery staff

I was seriously disgusted after reading the following news article about a man who committed suicide after being harassed by MCB’s recovery staff.

Due to the alleged immense pressure and threats from the loan recovery staff of a bank, a man committed suicide inside his house within the jurisdiction of the New Karachi police station.

According to his father, Mohammed Munchi:

Mohammed Tufail, 27, was residing in New Karachi, which is where he committed suicide.

He added that his son, Tufail, got married a few years back and had one son. Due to some differences with Tufail, his wife had left him and gone to her parents’ house. A few months back, he had also gone through another setback, suffering a big financial loss in his LPG business.

Later, he applied for a loan from the Muslim Commercial Bank (MCB). Due to a delay in the payment of an installment, the recovery staff of the MCB started visiting his house and threatening him with dire consequences.

On Sunday, when Tufail was present at his house, the recovery personnel once again came calling and began to continuously pressurize his son. Tufail’s sister was home and the recovery team went to the point of grabbing her hand and harassing her. Their neighbors are eye-witnesses to this event. After a heated argument, the MCB recovery staff left.

This harassment of his sister was the last nail to Tufail’s self-esteem’s coffin, because earlier he already had suffered a huge loss in business. He locked himself inside his room and hanged himself from a ceiling fan.

Station House Officer, New Karachi, Pervez Gujjar, commented that they are waiting for the statement of the family and, as soon as they approached the police for the registration of an FIR against the recovery staff of the MCB, they would oblige.

Will the Recovery Staff of MCB tried readily in court? Will Tufail receive any justice? What was his fault?

This is not the first time that I’ve read and heard about the antics done by recovery staff of banks. They don’t only bad-mouth on phone but harass by coming over at office/home address. They are trained to go and pummel down the doors and pursue the “loan offenders”.

However, bank loans are available on silver platter, provided on dropping a few names and documents (which can even be fake). What is the remedy of this? Whatever the condition maybe, why there are not strict terms and policies used by banks so that such people are saved from the system and vice versa. Why give a bankrupt person loan? How many more to follow with our fast-paced and stressful work life?


20 Comments so far

  1. mastqalandar on April 30th, 2008 @ 6:44 pm

    He was stupid in the first place.

    These loans are for people who can make the recovery staff run for their lives, not for everyday *Ajmal*. We have tons of examples where these Feudal lords can get away with crores of Rupees.

    Sarcasm aside, its sad. I feel sad for the poor fellow and his family. May Allah help them and may Allah forgive him.

    I guess Recovery Staff was following procedures *Pakistani Style*.

  2. shoaib on April 30th, 2008 @ 8:26 pm

    Hats off to you Afreen to finally bringing this the blog. This needs due attention and discussion.

  3. calyps on April 30th, 2008 @ 9:11 pm

    May Allah help them but suicide will not solve problems will it?

  4. Shamsi (shamsi) on April 30th, 2008 @ 9:36 pm

    courts (though kangroo) have ordered in March that recovery staff must excercise decency when approaching defaulters.

    May ALLAH give the bereived family PEACE and this case of AJMAL be a lesson to those who are at default, and for those who comprise of RECOVERY team.

    SOOD (Laons. leases in soft terms Easy Intallments, Shirka, Ijara, Islamic banking, against Payment plan) is HARAM and It is clearly explained… SOOD laynay aur SOOD daynay wala, SOOD Ka karobar karnay wala, inn sab sai Allah aur ALLAH kai Rasoon (PBUH) ke Jang hai .

    Allah sai jang kar kai kon keyon kaysay Jeetay GA????


  5. d0ct0r on April 30th, 2008 @ 9:48 pm

    Two banks restrained from sending recovery squads

    By Shujaat Ali Khan

    KARACHI, April 2: The Sindh High Court restrained two commercial banks on Wednesday from sending recovery squads to the residence of an alleged credit card defaulter and summoned their executives and the SHO concerned to answer his allegations on April 16.

    Petitioner Amir Feroz submitted through Advocate Gohar Iqbal that he obtained credit cards from Citibank and Standard Chartered Bank during his employment with a private company on handsome emoluments. His employer, however, dismissed him without notice in December 2007 and his case against the verbal termination order was pending in a labour court.

    Due to abrupt stoppage of salary, the petitioner said, he failed to clear his debts and other charges on time. The accumulated debt rose to about 450,000 but he informed the creditor banks of his problems and difficulties. Simultaneously, he paid substantial amounts toward repayment of the outstanding debt and proposed a settlement to discharge his liability.

    However, the petitioner further alleged, the banks started sending recovery teams to his house in Zaman Town, Korangi. They shouted threats and used intimidating, insulting and humiliating language and hurt his self-respect and lowered his esteem among his neighbours. He approached the Zaman Town station house officer for protection and the banks for a reasonable settlement but there was no positive response from either.

    Justices Mrs Qaiser Iqbal and Syed Mahmood Alam Rizvi, who constituted the bench seized of the petition, observed that the dignity of person and, subject to law, privacy of home were inviolable under the law and Constitution. Issuing notices to the respondents for April 16, they restrained the banks from taking coercive action against the petitioner, including dispatch of recovery teams.

  6. Faisal.K (faisalk) on May 1st, 2008 @ 12:55 am

    we need consumer courts now!

  7. Adnan Siddiqi (adnansiddiqi) on May 1st, 2008 @ 12:18 pm

    not only recovery staff, call centers of banks are not good either. They literally humiliate customers on fone. if you refuse NOT to buy their credit card services,they start cursing you.

    And I tell yo one thing for sure that they have all if your info including Salary and your own bank sell to others.

  8. karachite on May 1st, 2008 @ 1:47 pm

    Govt should learn some lesson from this sad incident and make some
    strict laws against theses humiliating acts.

    I think using a system like USA where every thing is tracked by
    your social security number would be nice. Where all previous record is
    available to creditors and maximum damage they can cause to anyone is to
    make them defaulter on their credit history (which is manage by three major companies) no bullshit nothing just a plain defaulter and the person will not able to get credit card again and I think this is reasonable trade off

    by the way all the creditors money is insured by VISA and MASTER they are at no loss in any case

  9. voice on May 1st, 2008 @ 3:13 pm

    I am an employee of MCB Bank , working in the Information Technology department as DBA , today I feel shame of my sy self , no one can do any thing against Mian Mansha the chairmain of MCB because of his power and links , how ever for your convinience if any of you face any problem regarding MCB in future than you can mail on following address

    Najeeb Malik
    Head of Service Quality Assurance
    8th Floor, MCB Tower, I.I. Chundrigar Road
    UAN:111000111 Ext:4208 Direct:021-2270089
    Rubina Rehman
    Service Manager
    8th Flr, MCB Tower
    Maria Danish
    Assistant Service Manager
    8th Floor, MCB Tower

    ———————————————– = Head of HR
    ————————————————– = president of mcb
    and last but not the least the address of governer of State Bank

  10. fasee on May 1st, 2008 @ 7:10 pm

    Most of people here or anywhere else, act like emotioan ladden crowd
    full of emotions but dont knwo what is happening and who has done what wrong exactly.

    Do any one ask that guy why the hell he opted for a loan with 36% rate of intrest instead of the regular 18-20% loan instruments.

    Why he took a O/D facilty for working capital requirement which is like doing suiside if done on 100 % baisis..what he did.

    did he ever tried to negotiate with teh bank for chaneg of terms etc.

    my dear there are alwasy options available…biggest crime of us in having no knowledge or not enough knowledge…..

    being a finance manager in my compnay…have helped so many poor souls get out of the claws of these banks ( or just gettign there burden lighter by swithcing to easier loans )….i have lost the element of surprise after seeing one after another opting for such stupid terms inthe first place….

    no wonder banks are making such handomse profits culling us stupid pakistani nations….

    and the experts in govt are doding nothign to stop this malpractice at all.

  11. karachite on May 1st, 2008 @ 9:28 pm

    even if the interest was 50% he deserved no humiliation, like in this case
    where he ended up committing suicide this so inhumane

  12. fasee on May 1st, 2008 @ 10:17 pm

    my friend…its truly right…

    BUT…woh shair hai na

    "kuch is shehar ke log zalim san"
    " kuch sanoo maran da shauk vi see"

    means bank are there to earn moeny….by hook or by crook…..
    they show no mercy…dotn expect any mercy……

    but whast the excuse for you ( i meant all the perosn delaing with banks) to act so un rashionaly, to the level of stupidity……..

    its same as we say there is so much crim ein society……and yet still leave or door unlocked…….

    when we know these banks are eveil..then why the hell we dont keep our eyes open…and why cant we stop the show off attitude to show off infornt of our neighbours with our leased car insatment pacakge mobile phone and free miles petrol card :)

    till we do…these parqasties will keep on leechign on our blood and souls..period

  13. sajjadmaqbul on May 2nd, 2008 @ 5:00 pm

    Well most people that these banks hire for recovery belong to Mafia, and Gunda type people. So what can one expect from them.

  14. balma on May 2nd, 2008 @ 8:06 pm

    There have been informative articles in the Wall Street Journal over the last couple of years on how banks like Citibank etc. have hired ghunDaas in india to recover money.

    On the other hand, our people (consumers, borrowers) are mostly big time haraamis as well.
    When no one is honest, this is what happens.

    and, Mullah Shamsi, sood is not haraam. Loan sharking may be, but sood as it is practiced by the civilized world (Pakistan obviously is not included in this list) is an engine of economic growth. But, I will agree that there should be checks and balances.

    And, of course, what is mostly sold as Islamic banking in Paksitan is all regular banking under the burqua of Islam – i.e. hamaari qaum say fraud jitnay karvaanay hai’n kar-vaa lou. I was recently amazed to find out that certain categories (at least in some situations) of so called Islamic banking are banned in the US for being a type of usury (extra-ordinary rate of sood or munaafa’ )
    Kar lo gal!

  15. d0ct0r (d0ctor) on May 4th, 2008 @ 3:11 am

    and, Mullah Shamsi, sood is not haraam

    @balma for you sood might not be haram but for Muslims its definately haraam.. oops did i just issued a fatwa declaring you a non muslim,i think i just did, stop mixing up your personal theories with islam..

    so called Islamic banking are banned in the US

    just tagging some thing as Islamic or halal doesn’t make it so, you have to read the fine print as well,if they’re not adhering to islamic principles and are blindly following some enlightened Mufti Balma who keeps on telling them ‘sood is not haraam’ then am not surprised that they’re banned..

  16. shoaib on May 5th, 2008 @ 2:15 pm

    Good comments Doctor, you are 100% right. SOOD IS 100% HARAM LIKE SHARAB.

  17. balma on May 5th, 2008 @ 11:53 pm

    You can read the fine print as much as you want, but everything that is sold under the guise or libaadah or burqua of Islamic Banking is not any different than the normal banking, except in some cases (and this is funny) the interest rate of such Islamic banking instruments is so high that even the American Govt thinks of them as Usury…..

    Muslims love to reinvent the world, Islamic Banking, Islamic Medicine, Islamic Science, Islamic Social Science….achhaa! original research kahee’n hai’n hae….magar Islamic subb kuchh hae.

    But here is Mufti Balma’s thinking on Islamic Banking: if putting banking under the burqua of Islamic Banking can save Muslims from becoming maflook-o-budhaal, all power to it. If it can help Muslims buy home and build wealth, all power to Islamic banking even if it is a fraud with the jaahils.

  18. fasee on May 6th, 2008 @ 6:45 am

    I dont know about USA, but if we talk in pakistani prespective, i can talk with authority.

    As a finance manager i deal with these clowns every week.

    we over sensitve and over zealous muslims just think islam islam kernay say we wud becaome a better muslim… same context, just saying its islamic bankary does make a conventional banking an islamic banking

    if you guys have time, do attend a meetig or a seminar where we chartered accounts meet with bankers….rula detay hian is ko….so now if they meet with some one knowladgeable they keep there smile and offer only non islamic banking…as they now we now its just for fools

  19. chodoo420 (unregistered) on September 28th, 2010 @ 6:05 pm

    first of all we should not use credit cards pay in cash like this you can have exact financial self postion. sood is really really haram.all banks like sc ,citi,…etc are eagent of israel which has agenda to spread sood in muslims.although their agenda is failed due to their agents in pakistan are incompetent/a incapable that is why some of the banks gone bankrupt and sold out ……..shut will be mcb ubl and bank alfalah.

    so never keep your money in these banks except nbp.specially if you are using c/cards or p/loan

    allah hafiz

  20. prait-atma (unregistered) on October 1st, 2010 @ 7:03 am

    yes…i agree…we must all burn credit cards and increase the polution in the process…but not to worry…we will be compensated in after life with some extra horny virgins… for banks…lets burn em all down too……and currecny too…..i wud love the new..err…th eold trading system…..when i wud be buying my new phatphatti GLI…it wud be like……10 chikens, 15 australian cows, 5 dozen eggs and 6 sheeps…as down payments…us ke baad lease payment ke toor me 20 anday, 5 murghi 2 ghooray and ik bakri pohancha dijiye ga….verna recovery team wlaay aap ka tractor ya tabelay ki sari bhainsain utha ke la jain gay.

    subhanallah…kiya rooh parwar pur noor wo pur saroor wo pur masroor wo pur shakoor najara huway ga…….rooh-e-imani wu rooh-e-sultani wu rooh-e-jawani wu rooh-e-noorani taja hu gai…..

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