The debt collection policy of the bank is built around dignity and respect to customers. Bank will not follow policies that are unduly coercive in collection of dues. The policy is built on courtesy, fair treatment and persuasion. The bank believes in following fair practices with regard to collection of dues and repossession of security and thereby fostering customer confidence and long-term relationship.
Repossession of security is aimed at recovery of dues and not to deprive the borrower of the property. The recovery process through repossession of security will involve repossession, valuation of security and realization of security through appropriate means. All these would be carried out in a fair and transparent manner. Repossession will be done only after issuing the notice as detailed above. Due process of law will be followed while taking repossession of the property. The bank will take all reasonable care for ensuring the safety and security of the property after taking custody, in the ordinary course of the business.
If you are unable to raise the money to get your repossessed property back, the creditor must sell the item, and you have the right to get written notice of the sale – when and where it will take place – before it happens. The sale must take place within six months after the repossession. If your property is to be sold at a public auction, you can bid for the item or get a friend to do so. You may also get it back by paying the debt in full any time before the resale.
After the sale, the creditor has to give you a written statement showing the sale price and what was done with the money. If there is money left over after the debt is paid, it must be returned to you. If the sale price is low, the sale may be illegal and you can sue to get damages. If anything else about the sale seems unfair or illegal, you should see a lawyer.
