Code of Conduct for Collection of Dues and Repossession of Assets

Objective

The objective of this Code of Conduct is to ensure that the collection of dues and repossession of assets is conducted in a fair, transparent, and respectful manner. The aim is to foster trust and confidence among customers and maintain a long-term relationship.

General Guidelines

• Respect and Dignity:
• All interactions with customers must be courteous and professional.
• Respect the privacy and preferences of customers.
• Identification and Authorization:
• Representatives must carry proper identification and authorization.
• Upon request, they should display their authority letters to the customer.
• Timing of Contact:
• Customers will be contacted during standard business hours (08:00–19:00) unless exceptional circumstances require otherwise.
• Modes of Communication:
• Communication will be conducted via written notices, phone calls, or in-person visits.
• Use of clear and understandable language is mandatory.
• Avoidance of Harassment:
• Any form of verbal, physical, or psychological intimidation is strictly prohibited.
• Public humiliation or intrusion into personal and family matters is not allowed.
• Special Circumstances:
• Contact during sensitive times, such as bereavement or calamities, will be avoided.

Procedures for Collection

• Pre-recovery Notices:
• Adequate written notices will be issued before initiating any recovery actions.
• The notice period will allow customers reasonable time to address overdue payments.
• Customer Assistance:
• Customers experiencing genuine repayment challenges will be guided on possible solutions.
• Requests for rescheduling or alternate arrangements will be considered.

Repossession of Assets

• Fair and Transparent Process:
• Repossession will be initiated only after proper notice.
• The safety and security of repossessed assets will be ensured.
• Valuation and Sale:
• Valuation and disposal of repossessed assets will be done as per legal requirements.
• Excess sale proceeds will be refunded to the borrower after covering outstanding dues and related costs.
• Reinstatement Opportunity:
• Borrowers will have the opportunity to reclaim their assets by settling dues before the sale.

Engagement of Recovery Agents

• Appointment:
• Recovery agents will be engaged as per regulatory guidelines.
• Their identities and roles will be disclosed to customers.
• Agent Conduct:
• Recovery agents must adhere to this Code of Conduct.
• Violations will result in penalties or termination of services.

Monitoring and Record-Keeping

• Documentation:
• Records of all communication, recovery efforts, and repossession actions will be maintained.
• Compliance:
• All activities will adhere to RBI's Fair Practices Code for Lenders and other applicable guidelines.

All the employees of the representing the Company in dues collection or/and vehicle/security repossession would follow the guidelines set out below:

a)The Customer should be contacted ordinarily at the place of his choice and in the absence of any specified place, at the place of his residence and if unavailable at his residence, at the place of business/occupation.

• b)identity and authority of persons authorized to represent the Company should be made known to the customer at the first instance.
• c)Customer privacy should be respected.
• d)Interaction with the customer should be in civil manner.
• e)Customer should be contacted between 7 a.m. and 7 p.m., unless the special circumstance of the borrower business or occupation requires contacting at a different time.
• f)Customer request to avoid calls at particular time or at particular place should be honored as far as possible.
• g)Time and number of calls and contents of conversation should be documented.
• h)Customer should be provided with all the information regarding dues and necessary notice should be given for enabling discharge of dues.
• i)Reasonable notice would be given before taking custody of security and its realization.
• j)All assistance should be given to resolve disputes or differences in a mutually acceptable and in an ordinary manner.
• k)During visit to the customers place for dues collection, decency and decorum should be maintained.
• l)Inappropriate occasions such as bereavement in the family or such other calamitous occasions should be avoided for making calls/visits to collect dues.
• m)Demeanor/behaviour that would suggest criminal intimidation or threat of violence should be carefully avoided.

DO’s & DO NOTS

This Code of Conduct emphasizes the importance of fairness, respect, and legal compliance in all interactions with customers. It aims to uphold the integrity of the financial institution and ensure customer confidence.