Banks to recover dues from your salary

By SiliconIndia   |   Wednesday, July 29, 2009   |    18 Comments
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Bangalore: In their constant pursuit of recovering dues from credit card customers, banks are empowering themselves with a tool that allows them to ask employers to deduct the outstanding amount from the salary. ICICI (Industrial Credit and Investment Corporation of India) bank, recently amended the 'terms and conditions' for its credit card holders by including a clause that empowers the employers to recover credit card dues from employees, who have defaulted on payment. The amended 'terms and conditions' say that "no law or contract" governing either the card holder or employers prevents the bank from seeking such deduction and subsequent payment by the employer to the bank. On the new move, ICICI's spokesman said, "This clause is applicable only for customers, who default on their credit card payments. Prior notice has already been sent to all our customers to make them aware of this clause." The deductions from the employee's salary will be made until the card issuing bank recovers entire amount due on the card. All deductions made will be remitted to the beneficiary bank. Besides, as per the new clause, it would be the bank which would decide upon the quantum of the deduction. The revised credit card terms and conditions, after incorporating the new clause, have come into effect from July 23, 2009.
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Reader's comments(18)
1: ICICI I think feels they are the best banks in India - which is gonna be just a dream and not reality.
I was a user of ICICI Credit Card about 4 years ago, and a salaried individual in an MNC. I was forcibly given the credit card when i took a personal loan from ICICI Bank. However it was unnecessary for them to do so because if a person is taking a personal loan, this clearly means that the person is unable to live with the current financial state of his and has borrowed money from the bank for a survival. In this case, why do these cheating banks give you a credit card?
Then when it came to my repayment of my card, i made it for the 1st 6 months without any delay - later I realised that the bank is RAPING me off my money..charging me some kind of interest and surcharge that I was never told of.
Now, RBI and ICICI seems to be so well bonded with each other, that I don't fail to imagine if ICICI starts printing Currencies in India with their own logo than that of RBI currently.
If ICICI wants to recover their credit card dues, they should 1st go after their board of directors and their very own privileged customers who owe the bank more than lakhs of rupees than going after people who owe them in thousands.
Now I don't feel like clearing the debt I personally have with ICICI - anyways I am currently unemployed...Was laid off recently. What company will ICICI go to seek recovery of their dues?
Posted by:ICICI Is Fraud! - 30 Jul, 2009
2: This should be applicable only when bank stop completely advertisement about cards. Bank representatives make a lot of false promises to fulfill their target.Instead of mentioning in fine lines about deduction from employer, bank should obtain written consent from employer about this before issue of cards.By this innocent persons are going into trouble.In fact bank is earning a lot of money through cards & it should be abolihed immediately. Max interest should not be allowed more than 15% & penalties should be scrapped.
Posted by:Rajeev - 30 Jul, 2009
3: ICICI isnot really completely doing banking alone, but they are here to skew you out, who ever signed any paper from ICICI, is done for the rest of the life. There are lot of cases given against them where they have cheated the customers by taking money from the account which they have shown as loan from the bank. But still they are really masters in holding up the mouths of our jurisdiction and rbi with thir money power. pity on our government and jurisdiction. Better never go for a deal with ICICI, unless otherwise you are going through your 70's and you dont have a family. Those who have families beware of the ICICI gundas.
Posted by:ICICI - 30 Jul, 2009
4: Hi all this is absolutely making no sense the way it has been portrait here of recovering the dues from the customers. why because when the customers is in pain than only he will not able to pay the dues but the bank will not understand he will be going on issuing the statements every months putting lot of interest in the outstanding amount.That will be raising every month in the statement and they will send recovering people to the customers place and start harassing him by filthy languages and scarring them to clear the dues inspite of request made by the customers the reason of why they are not able to pay. Now a days people who are losing the jobs how they are going to pay when they don't have alternate resources and they will be in the fraud list. And if you have two loans going on in the same bank and if u have a credit card dues how we are going to manage wen we lose our job. This is going to disheartened people and people will definetely lose interest the bank for future correspondence and people will think twice before taking a credit card. I think the banks have think it now before taking further steps.
Posted by:Prakash - 30 Jul, 2009
Praksh any recovery agent has no right to harass you.. in case any recovery agent harass you, call the police.... best way is to setlle the account no bank agent can touch you... believe me.... you have the power to take action against them..
Piyush Chawla Replied to: Prakash - 06 Aug, 2009
6: Ridiculous! These guys pester us constantly to get their credit cards. They also increase the limit to superfluous levels and when someone is not being able to pay back they find all these crazy strategies.

What is the RBI doing to set standards on credit card expenditure ... Typical "tempt and torture" policy.
Posted by:John - 30 Jul, 2009
7: Many of the credit card companies draft bills even if we do not use the credit card. Even in that case, the charge will be deducted from the salary? I think its better to utiise the credit card effectively or not to have a credit card at all.
Posted by:Sudhakar - 30 Jul, 2009
8: Things can be so simple and easy if all of us cleared our credit card payments before the due date.

All this mess is only for the defaulters. If u CANT pay the credit card payment even after 55 days, then u DON'T deserve to hold a card and it clearly means u cant manage your finances. Why blame the rules and the Govt?
Posted by:Saral - 30 Jul, 2009
9: In case, a person loses his jobs, and this is the only clause of recovering the credited money, then, the bank will be making fool of themselves. :)
Posted by:Shailesh - 29 Jul, 2009
10: The very concept of this exercise is ridiculous and I am surprised that the RBI is sitting and watching the Banking Industry get into the very livelihood of people and take their money away. The clause that says that the bank "would decide on the quantum of deduction " is almost ludicrous. Will anybody please let us know through this forum if this is legally and constitutionally right?
Posted by:Eugene Ross - 29 Jul, 2009
Loans have no constitutional right & legal law, as loans are provided completely based on documents. Primary document is your employment or source of income. If at all you loose your source of income by any means then you are not bound to pay the provider (Banks) as agreed instalments, but for sure once you get back your source of income you need to continue you payments. For confirmation why do bankers outsource their recovery to any DSA, the only reason is there is no law unless until you end up doing a scam or fraud. Banks are only allowed to communicate either by emails or correspondence mail which is not the scenario...

Michael Nathan Dsouza
michael nathan dsouza Replied to: Eugene Ross - 30 Jul, 2009
12: Why the hell these banks issue credit card and maintain such a large sales force, and then force the customers to pay them back through unfair means.
I advise never to take ICICI credit cards,its thr worst company with zero ethics and worst customer service.
Posted by:Bindu Rathore - 29 Jul, 2009
13: hi all, I would want to know about one thing that how & from where do the bankers manage to get liquid(money) which they give to their customers or people who are in need or the bankers would create a need. As I understand BANKERS across the globe do not have a printing machine or a dye, so where exactly do they manage to get this volume. The printing machine or the dye is only with RBI & RBI cannot print capital as our currency is monitored by the IMF (International Monitoring Fund) now if we print our value for our currency globally would dip down so we cannot afford to print the currency. So where exactly does the RBI manage to get the volume which they further provide to the bankers to make extra money from it? Let me answer this question. All & any kind of loans which any individual applies for is his/her own money which we pay through TAX & VAT..... The amount of TAX we pay annually & the amount of VAT which is applied on all goods we purchase, we what RBI generated add-on revenue for the countries development which unfortunately not the case. Majority of the generated revenue through VAT & taxes apart from defense & civil force investment are provided to the bankers which they either invest in international market or distribute back to us in the form of various LOANS. So the nutshell is we are getting our money back to us but in the form of various loan which unfortunately we have to pay back with an X amount of interest to it. Is it not strange that we not only hide from the so called bankers when we are not in the position to pay our monthly installments rather i would call FOOLISHNESS or LACK OF KNOWLEDGE as we end up paying our own money along with interest rate. I PITY our self and hats off to the bankers as they have managed to get into our salary account as well. All we have to do is get united and teach a lesson to these bankers, if they have dues to be collected then they should be paying from their own account & why not have they not made huge amount of accounts for themselves moreover through our MONEY. They should not get the access to our salary account as the pressure is on them through the government & they should be responsible for the loss. I remember there was time where these bankers were forcing people to avail loans in any form, whatever fraud has happened to the bankers is because of their own doing, no one knew the loop holes for any loans. It was them who taught how to manipulate with the documents to avail a loan. Again i would urge on behalf of every individual that we need to stand united to overcome these so called LOSERS (BANKERS) THE CORPORATE WORLD SUCKS....
Ty Michael Nathan Dsouza +91-9214756707
Posted by:michael nathan dsouza - 29 Jul, 2009
man u need to learn economics first
it is not he logic wht u think it is far complicated. and not unfair as u think
Nayan Replied to: michael nathan dsouza - 30 Jul, 2009
would be obliged if you could brief me........Loans have no constitutional right & legal law, as loans are provided completely based on documents. Primary document is your employment or source of income. If at all you loose your source of income by any means then you are not bound to pay the provider (Banks) as agreed instalments, but for sure once you get back your source of income you need to continue you payments. For confirmation why do bankers outsource their recovery to any DSA, the only reason is there is no law unless until you end up doing a scam or fraud. Banks are only allowed to communicate either by emails or correspondence mail which is not the scenario...
michael nathan dsouza Replied to: Nayan - 01 Aug, 2009
ICICI needs to understand that credit card provides unsecured credit to customers. They need to secure themselves by doing due diligence while selecting their customer.

Having the right to deduct from customr's salary is like offering secured loans to customers which is ridiculous.

Lets all of just give up ICICI credit cards.....
Sumit Roy Replied to: michael nathan dsouza - 29 Jul, 2009
Could any banker say us who has vested them the right of deducting amounts from the salary account. It is against to labour laws and should not be enforcable.
Srikanth Replied to: Sumit Roy - 29 Jul, 2009
You cheat and you repay....thats it...simple....Keep going ICICI
Ashish Bajaj Replied to: Srikanth - 30 Jul, 2009
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