Repossession of Property

Indian Bank Association (IBA) has laid down some norms for due collection process which includes guidelines for repossession of property as well. They are:

- The bank will opt for the repossession of the borrower's property only as a last measure. The bank should also give a legal notice to the borrower before it does so.

- After taking custody of the property, the bank must take proper care to ensure safety and security of the asset.

- After selling the property, if bank is left with any excess amount upon selling its dues, then this left over amount must be handed over to the borrower.

- The borrower has each and every right to repossess its asset upon clearing the dues.

Complaints by Customers

At any point of time the customer can complaint about the bank representative, if he is unsatisfied with the behavior, and the bank must investigate into it. The matter can also be taken up to the bank ombudsman if the customer is dissatisfied with the action taken or if the bank doesn't take any proper action against the recovery agents.

Details of Recovery Agents

The bank usually hires professional recovery agents to recover the money from the borrowers. It's not necessary that the customers will be familiar to this fact; hence the bank should post complete details of these recovery agents on their websites. They should also make the information available at every branch of theirs, for the customers. More importantly the bank representatives must have proper identity card representing the bank and an authority letter as well.