Mahindra Finance to review role of agents | Social Hindustan News

Mahindra Finance to review role of agents | Social Hindustan News

Mahindra Finance on Friday undertook to examine the practice of hiring third-party loan recovery agents after one such agent was alleged to have run over a 27-year-old woman with a tractor in Hazaribagh district of Jharkhand, crushing her to death.

The alleged incident was reported by several local media outlets

One of them, Lagatar 24 reported on Friday that loan recovery agents had intended to confiscate the tractor, bought with a loan, after a Hazaribagh-based farmer was unable to pay outstanding instalments. The farmer was allegedly last informed about the overdue amount via a text message two days, before four agents showed up to take possession of the tractor.

An altercation allegedly took place after the farmer and his pregnant daughter left their home to meet the recovery agents and pay up. The agent allegedly ran over the woman after an argument when the farmer asked to confirm the agents’ identity.

Mahindra Group MD and CEO Anish Shah said, “We are deeply saddened and disturbed by the Hazaribagh incident. A human tragedy has occurred. We will investigate this incident from all aspects and will also undertake an examination of the practice of using third-party collection agencies that have been in existence. We will extend all possible support to the authorities during the investigation into this tragic incident and, above all, we stand with the family in this moment of grief.”

Banks and non-banking financial institutions often engage third-party collection agents to recover dues against loans, and, if necessary, repossess the assets pledged against the loan.

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