Pakistani Banks .. Mobs disguised as loan recovery agents

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A Man commits suicide due to harassment by loan recovery team… Yes indeed you read it right and it happened in Karachi Pakistan …

The news went like a flea in my ear , I wonder how we are putting a spoke in common people ‘s wheel…

The report says that due to the alleged immense pressure and threats from the loan recovery staff of a bank , Mohammed Tufail, 27, committed suicide inside his house within the jurisdiction of the New Karachi police station.

According to his father, Tufail, got married a few years back and had one son. Due to some differences with Tufail, his wife had left him and gone to her parents’ house.

A few months back, some thing as ugly as a sin happened when he had o gone through another setback, suffering a big financial loss in his LPG business.

Later, he applied for a loan from the Muslim Commercial Bank (MCB). And due to a delay in the payment of an instalment, the recovery staff of the MCB started visiting his house and threatening him with dire consequences .Later, ostensibly due to the constant harassment of the recovery staff, Tufail locked himself inside his room and hanged himself from a ceiling fan.

Another innocent life lost and I was wondering what was his fault ? was he trying to make a silk purse out of a sow’s ear when he took that loan ..

What struck terror in his heart eventually leading him to one the greatest sins , suicide …. What was the real throne in his flesh … Personal difficulties or Bank officials

I have heard that Banks in Pakistan officially hire Goons for their money collection Business … Do you think they are justified doing it ?

Any insight on how these Money /loan recovery teams work in Pakistan ?
Your penetrating mental vision mates …..

Reference :

THE NEWS.; 2008. Man commits suicide due to harassment by loan recovery team. Available online : The News International: Latest News Breaking, World, Entertainment, Royal News [accessed date 04/05/08] .

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Re: Pakistani Banks .. Mobs disguised as loan recovery agents

19 views and no reply shows , what a moribund nation we have become …

Indeed we are on the verge of extinction …… we should be …

As we have gone so insensible and stolid that we don’t even bother to offer our condolences on an innocent victimized death .....

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Re: Pakistani Banks .. Mobs disguised as loan recovery agents

I heard about it on TV news a few days ago. Pretty sad, actually. In the old days, I recall that bank collection staff were very bureaucratic and will largely limit themselves to writing nastygrams. I guess, lately with more consumer loans being out there, banks have adopted more aggressive approaches to recover bad loans. I heard a government minister make a statement that after these kinds of incidents they will investigate these practices through the Parliament as well as to make rules to govern bank collection efforts. It remains to be seen how such efforts will pan out.

why GS has turned to be so boring??
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Re: Pakistani Banks .. Mobs disguised as loan recovery agents

Sad to know...

thats y its a common advice to stay away from bank loans ... whatever the circumstances r around...

quite irreparable loss...

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Re: Pakistani Banks .. Mobs disguised as loan recovery agents

I had heard about this in 2004 when I visited karachi... During that time, banks had started the Car Finanancing transaction much like North America and I heard about these tactics by them... I was not surprised... I was in Pakistan you see...

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Re: Pakistani Banks .. Mobs disguised as loan recovery agents

This is very sad :( Thats why its always better to stay away from loans/leasing. However, here i must say its so sad that the poor, helpless people in these cases suffere where as the big tycoons not only get loan way more than they are eligable for but they never repay but are able to survive because of links.

The root of all this is the unstability of country and lack of education. If people are not going to get good jobs and be able to earn money or run their business than they are bound to face loses.

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Re: Pakistani Banks .. Mobs disguised as loan recovery agents

toughs have been used in US as well, especially is the loan is given to a collection agency, who will call, visit etc, to a point laws had to be enacted here to limit those practices.

I do not however think that this guy's suicide ws just because of collectors harassing him, it appears he had marital issues, financial issues, business issues,the tough arm tactics of collection may have played a role into it, or may be that straw that broke the camel's back, but it can not be solely attributed to the collection staff.

Its irresponsible reporting from what I can see.

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Re: Pakistani Banks .. Mobs disguised as loan recovery agents

Imran had already strongly crictisced Shoukat Aziz for all this - pardoning the influential people for billions of rupees loans and forcing common people to commit sucide for a justified defualt on loan recovery. And that was before this incident. He was referring to another same type of suicide in Punjab.

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Re: Pakistani Banks .. Mobs disguised as loan recovery agents

lesson for the banks: never ever hold money dear. it might make the industry's hands in blood.

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Re: Pakistani Banks .. Mobs disguised as loan recovery agents

influential ppl have been defaulting on loans for decades so that is not something new. The issue is that financing is more widely available, and it is people's personal responsility to learn to use creit wisely and properly, while lending institutions and govt agencies or even non profits can help, in the end it is personal responsibility.

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Re: Pakistani Banks .. Mobs disguised as loan recovery agents

actually heavy politics is at work here. what happened is that banks started giving loans out to every tom dick harry, for almost no collateral or guarantee. and (specially in karachi), a lot of people are assocaited with MQM in one way or the other..and when banks would go to recover their loans, these people would threaten the collectors through their mqm thugs, and drive them back.
so the banks decided to play the same game...and hired mqm thugs to work as collectors for themselves....and as a result, the game has been turned around.