Banks and Unethical Practices
Almost every business concern is involved in unethical practices in one way or the other and so are the banks in Pakistan. The primary source of information on this subject amongst other sources are publications of SBP and annual reports of Pakistan Banking Mohtasib which was established in 2005 to resolve banker-customer disputes and since then it has effectively contributed towards improvement in banking sector.Banks in Pakistan are involved from miner behavioral issues to serious and alarming issues like harassment of customers for recovery etc. Here we will discuss the nature of wrong a bank may do and how a bank may avoid the same. Violations of SBP instructionsFollowing SBP instructions is the responsibility of every bank and its officials and if properly followed, they can save many people from getting into trouble. Surly they are for the sake of good and not just to show the power of central bank. Specially those instructions which are directly related to customer dealing and customer services must be followed strictly. Customer HarassmentThe history of harassment for recovery goes very back. In past ADBP (now ZTBL) officials had the powers to arrest defaulters which was abolished by former Chief Executive Gen. Pervez Musharaf. In current scenario with the vide spread of credit cards, banks became more brutal even forcing people to suicide (according to various news reports in 2009). Lake of efforts on improving credit quality causes increased default rate and thus resulting in banks making alternate “arrangements”. Why give such loans at first place though?Banks usually outsource their debt collection to agencies who employee gangsters to collect debt by force. They enter in houses by force, threaten the customers and use harsh language, embracing them and torturing them mentally and physically. False information to customersIt is the sales staff that, for the sake of earning commission, induces people...
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