The Credit Card Holders Association (CCHA) has appealed the Reserve Bank of India to put a restriction on the interest rate charged by different banks and also to take strict action against the banks who are using recovery agents to harass debtors.
CCHA general secretary C V Giddappa said, "Rate of interest charged by banks range from 36 to 42% in addition to a 12% service charge. In spite of the RBI decision to regulate the appointment and engagement of recovery agents, banks continue the practice".
He informed that recovery agents harass debtors in case they failed to repay a single installment of the debt incurred on their credit cards. He added, "There have been cases where a bank has, at one go taken the entire debt amount from the card holder's account."
"Several people have complained of banks registering criminal cases in places away from the residence of the customers ".