Standard Chartered Bank officials jailed....!

[hash4u]

the thing is if i can afford a 125. i should not go lease an XLI. Bank has to keep itself running. its not a charity organization.

the only sad part is the big fish in our country walk out...."Qarza maaf"......(N)

[autophile]

Well it is quite normal, but in this case the customer seems to be well connected may be with some very powerful people or a political party which is known for such things.

Now let me tell you, banks have been forced to resort to such tactics, because people in Pakistan do not have a habit of returning their loans on agreed time. Had the banks not been adopting such a policy, they all would have been closed today.

I do not condone this method, but what can you do? If the banks go to court for the recovery of a bad car lone, the legal expenses would be thrice the cost of a particular car at least and it will take at least 20 years to decide the case.

Since bank is the owner of the car, during the lease time, it can repossess it anytime and the use for third party recovery mechanism is applied to mitigate losses incurred on account of a bad debts.

One cannot defend or justify non-payment of lease, so first of all the guy is wrong who had stopped paying installments after sometime.

It is strange that people do not pay loan installment and then blame banks.

My five-year lease is going to end in July and never in these five years for a single time I have a got even a single call from my bank asking me to pay or bother me for something as I have been paying my installments regularly three times before the due date.

It is a different story that the bank increased mark up rate by three percent after one year, but that does not give me a licence to default on installments. I could end the lease by selling the car and paying the rest of the loan amount and closed that chapter forever, but noway I have the right to stop paying installments.

[matrix]

Good decision to punish these gunda bankers. This is not the way any institution, let alone foreign banks, should behave with customers. The guy who leased the car tried to get it back by settling all dues, but bank was inflexible and bent upon auctioning the car. And from the comments here, some posters are questioning the judge's authority in taking such steps, which were justified in light of the payment documents provided by the customer. It's better to get to know the story before crying foul and writing crap about "in this country.....". Credit should be given to the customer for teaching the bank a thing or two about 'customer service' in future; given that the manager in question here got a sound beating in the lockup for trying to run away.

[anonpak]

Matrix: Talking about customer service? HAH. You are no not a customer when you stop paying of a car loan and keep the car. You are a crook. A thief.

Read what Autophile has written: the bank has legal ownership of any leased car and can move to reclaim it whenever a payment arrangement falls through. Paying "some"of an outstanding balance is equivalent to theft. The deal was to pay the full balance and this guy's driving around in a car with only "some" of the balance.

This is black letter law we're talking about. No ifs and buts... the bank was acting legally in reclaiming the car. Unfortunately the kidnapping allegations (likely false) have thrown a wrench in the whole situation.

[hassam]

no one thought about which car would that be in 1.2 million (including interest amount)?

[ToofaneBatameezi]

Anonpak: Rightly said; But kidnapping someone cannot be justified with anything, You let it through now; 100's will suffer in the coming days!!

Autophile: Well said; As there's a phrase in urdu: Apni chaadar dekh k Paoon pehlanay chaiyeh!! (Y)

[matrix]

anonpak: My friend no one is saying bank didnt own the car, but there are ways to do things. If the bank hadnt acted in a pharaonic manner, their personnel wouldn't be facing possible jail time today. Let this be a lesson to any bankers/recovery agents reading this: SBP has issued guidelines for such cases, follow those and we wouldn't be having such discussions here. All organisations operate under the purview of certain laws and authorities, and when these stipulate boundaries for operating, same should be followed without exception. Enough said! :-#

[ToofaneBatameezi]

no one thought about which car would that be in 1.2 million (including interest amount)

Hassam - Civic or Rolla when their prices were quite normal or were in that range - Remember that Bank reacted since a lot of time has passed by;

[iiqbal]

@hassam
Hassam bro taking car or any other thing on lease is totally wise condition as per current currency situation of Pakistan

@ ALL
Interest is haram in Islam ,So i don't recommend anyone to go for buy things where u have to pay interest

[TrueEye]

and why would someone extend you a loan keeping in mind the precarious state of our currency? I guess no one would. Banks are there to earn profit (its their business), if they keep on extending loans without interest, what would they do? Just consider it as their service charges, as they are providing you a service by extending you the loan amount, and no service comes free of cost. You can name it either way you want, but i guess there has to be some profit for the banks too. I know interest is haram but in the current monetary system, you just cannot avoid it. You would have to change the whole system.

[wik_a]

I know interest is haram but in the current monetary system, you just cannot avoid it.

Yes you can but to some extent. 1) Don't deposit your money in interest-paying accounts in banks (or give away what banks give you as interest), 2) Don't invest in bonds/debt related instruments, 3) Don't buy things on lease etc.

On the bank issue, I'd say that although bank reserved the right to get the possession of car in case of no payments but still kidnapping was way against the norms of professionalism (if it really happened).

[TrueEye]

and what if you have to take a loan? ^o)

[wik_a]

^ There are companies that run purely on equity financing. Even if debt is involved, its of very much negligible amount.

Its solely up to you whether to go for debt or not but if it is inevitable then as I said you can avoid but to Some Extent where things are under your control.

[fastoriel]

upar level ko pesa khilao karza approve kervao n bahgo pak se hehehe ...

actualy they dont do good thing recovery pechay kuta kuti ho jatayn hain thats not rite ...

[TrueEye]

wik_a

dude you are talking in terms of companies, and i'm talking about individuals :d how would an individual raise equity?

[wik_a]

^ lol ok. Well from my point of view its way easier to avoid interest bearing loans for individuals than for companies.

Just don't go for it. You can't afford a car on cash then don't buy it. You can't afford a new house then don't get into mortgage. And even if circumstances bound you to get into loan then you can put your other money into bank account and try to make payments of interest from interest received. It just depends upon circumstances. You can easily stay away from loan when you're individual but when there is no way left then ALLAH knows your intentions/problems and the whole capitalist culture.

For companies its difficult because sometimes its possible to avoid long term debt but not the short term (overdraft and all that).

[fastoriel]

^^ agreeed (h) ... jina haiga aey oday ich khush ravo (h) ...

[TrueEye]

Just don't go for it. You can't afford a car on cash then don't buy it. You can't afford a new house then don't get into mortgage.

nah dude dont agree on that 8-| you wont believe me but 2 third of the cars bought in developed countries are through leases and hire purchases. Why do you think the automobile industry has suffered so much in the wake of all this financial crunch? well thats the main reason, people buy cars on loans unlike in pakistan. This is one of the many ways to stimulate economy and inflate GDP. If people do not have the buying power, give them money and induce them into buying so that the economy blooms. But in pakistan, you might have noticed that the financial crisis didnt have that much toll, the reason is people just do not buy on loans. Which is good for the people but bad for the economy (H)

i have just given an example from one sector (i.e. automobiles), the same applies across all sectors, be it housing or some other. Financial activity should be induced (y)

[wik_a]

you got it oriel (Y)

[wik_a]

nah dude dont agree on that 8-| you wont believe me but 2 third of the cars bought in developed countries are through leases and hire purchases. Why do you think the automobile industry have suffered so much in the wake of all this financial crunch? well thats the main reason, people buy cars on loans unlike in pakistan. This is one of the many ways to stimulate economy and inflate GDP. If people do not have the buying power, give them money and induce them into buying so that the economy blooms. But in pakistan, you might have noticed that the financial crisis didnt have that much toll, the reason is people just do not buy on loans. Which is good for the people but bad for the economy (H)

Are you forgetting that this system is against Islamic teachings? ^o)

Of course you are right but that is the problem. The whole system is based on capitalism. Money is an asset and it requires rent when its given to other for some time.

I've never bought any of my car on lease and I am living in this very capitalist culture (H).