ICICI Bank cops it again

ICICI Bank has been slapped with a cost of Rs 5.5 mn in a consumer dispute. The Delhi Consumer Commission levied the penalty in a case involving the use of goons to recover a vehicle financed by the bank. As happens often in such cases, the wrong guy got beaten up- not the owner of the vehicle but his friend's son and ended up in hospital.

Only a few weeks ago, ICICI Bank was in the spotlight when a home loan borrower in Mumbai committed suicide- the bank entered into a settlement with the deceased borrower's family on that occasion.

Banks must beware- the RBI has warned that banks that attract strictures from a court will not be allowed to use recovery agents.

Rediff reports:

"No civilised society governed by rule of law can brook such kind of conduct," the Commission's president Justice J D Kapoor said, adding the violent methods adopted by the recovery agents were serious violation of "human rights".

Holding the ICICI Bank guilty of "unfair trade practice," the Commission termed such miscreants as "yahoos" and said they are boorish and a brutal lout, who care a fig for legal and judicial authorities, including the Supreme Court. While taking to task the leading bank, it vented its anger on ICICI for flouting the apex court's direction that restrained all the financial institutions from employing musclemen to recover a loan amount or possession of a vehicle.

The Commission, also comprising member Rumnita Mittal, issued notices to the collection manager of ICICI Bank and the CEO of the recovery agency, seeking their explanations over blatant violation of the direction of the highest court of the nation.