A recent article in the Christian Science Monitor just exemplifies how different consumer debt rules are around the world. In some areas debt collectors can intimidate you and in other parts of the world they can come to your home and office and shame you, grab you or break in.
The article is about debt problems in India and my favorite quote from the story is “I usually try to recover payments by nonviolent ways,” Mr. Shirole says, “but if they don’t work, I don’t have another option.” And in India, physical intervention is typical and legal.
In India being bruised by the debt collector isn’t your only fear. You can have your interest rates assaulted as well. Default interest rates can be raised as high as 49 percent according to the Indian Supreme Court which raised the maximum allowed default rate last year from 30 percent.
And forget the possibility of deep debt settlements like in the United States. Debt collectors are directed to go for it all as one said. “But recovering credit card dues – they are a major headache. The brief I get from banks is to try recover 70 to 80 percent of payments, if not all.”
You can read the full article from the Christian Science Monitor online.