Abstract

Customers and the public were crying foul at the increasing instances of high-handedness by banks’ recovery agents. They alleged that the banks were hard selling their financial products, but in cases of default by customers they were using unethical methods to recover their loans. The policy makers too woke up to this problem and issued guidelines and directives as a crack-down on the banks adopting unethical tactics to recover their loans.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Ethics and social responsibility
• Management Control
• and Customer relationship.

Keywords

Hard selling, financial products, unfair trade practice, Reserve Bank of India, RBI, Consumer Commission, ICICI Bank, recovery agents, loan defaulters, Housing Development Finance Corporation, HDFC, Indian Banks Association, Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, SARFAESI Act, Security Interest (Enforcement) Rules, 2002, Lok Adalat, Indian Institute of Banking and Finance