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Banks and Financial institutions cautioned against coercive recovery methods
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Visakhapatnam, July 7, 2007
People get their greviencies at DLSA or Lok Adalats
The District Legal Services Authority Chairman R Kanta Rao on Saturday suggested the people facing harassment by banks and non financial organization in the process of recovering dues to approach the DLSA or Lok Adalats to get their grievances redressed. He said strong arm tactics amounts to criminal offence.
Speaking to media, he said that the Supreme Court had stated in a case that banks are not supposed to employ alternative means of recovery other than by due process of law. He said that there are cases of harassment by recovery agents and the banks and Non Banking Financial Organizations were recovering their dues by coercion without availing the legal methods.
He cautioned that the banks would be held responsible for such acts of harassment by private agencies and said that the banks and credit card companies were giving away loans and cards to every one without checking their financial status. He said that the banks could not expect that every customer to promptly pay back the dues.
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