Dear fellow members,
A lot has been discussed and quoted.. but did some one tried to spell out a solution to deal with this issue.. I guess not.
In my humble opinion... The banks should not take law in their hands. Being dignified institutions having all the financials strings of our daily lives... they should try to recover their dues as politely as their managers issue them.
Heres are some tips...
Firstly, all loans in whomsoever catagories and vehicles are comprehensive insured. The bank does not even commute their cash transfer vehicles from head office to branch network with out insurence.
In case of default, the bank could recover the amount from insurance. The defaulter of leased car could be penalised by reporting the issue to CPLC data which could render the car unworthy of tax payment and resale to any one in pakistan.Moreover, the banks or leasing companies could proclaim it as stolen... which would be amicably spotted and confisicated by law enforcing authorities once it hit the roads.
As far as personal loans or credit card defaults are concerned, I suggest that the financial institution should embark on getting a bond signed from loan or credit card seeker's work place owner to be solely responcible in case of default. In this way the company only permit their employee to seek loan less than the amount of their gratuity and provident fund, which could be adjusted accordingly.
This lease bond/document should be effective till the recovery of consolidated amount regardless of the employee's termination or resigning from the organisation.
Singer Pakistan limited has been extremely successful in leasing their products nationwide in this manner and cases of default are almost nil.
Barging into anyone private property and persuasion without the support of any government law enforcing agency to recover anything is itself a crime against crime.
Think about it.