Download Plastic money PDF

TitlePlastic money
TagsDebit Card Stored Value Card Credit Card Cheque Credit (Finance)
File Size573.6 KB
Total Pages64
Document Text Contents
Page 32


(iii) Fair Practices in debt collection

a) In the matter of recovery of dues, banks / NBFCs may ensure that they, as

also their agents, adhere to the extant instructions on Fair Practice Code for

lenders (circular DBOD. Leg. No. BC. 104 /09.07.007 / 2002–03 dated May

5, 2003) as also IBA‟s Code for Collection of dues and repossession of

security. In case banks / NBFCs have their own code for collection of dues it

should, at the minimum, incorporate all the terms of IBA's Code.

b) In particular, in regard to appointment of third party agencies for debt

collection, it is essential that such agents refrain from action that could

damage the integrity and reputation of the bank / NBFC and that they

observe strict customer confidentiality. All letters issued by recovery agents

must contain the name and address of a responsible senior officer of the card

issuing bank whom the customer can contact at his location.

c) Banks / NBFCs / their agents should not resort to intimidation or

harassment of any kind, either verbal or physical, against any person in their

debt collection efforts, including acts intended to humiliate publicly or

intrude the privacy of the credit card holders‟ family members, referees and

friends, making threatening and anonymous calls or making false and

misleading representations.

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