Call Transcript

Dear Sir/ Madam,

Thank you for registering with Loansettlement and we would like to give you your login id so
that you can check your progress in the programme and next payment due. After logging in
please confirm that the loan amounts and EMI etc. are correct.

I would like to spend 5 min understanding how you got into this financial difficulty and how
we can work together to get you out of this debt trap and lead you and your family to
financial freedom. I would also like to understand if you are being harassed by collection
agents and give you an idea of how these recovery agents typically behave.

Managing the Recovery Process

As you are aware, recovery agents have no issues about coercing, abusing, threatening and
publicly humiliating people struggling to repay their debt. Another equally troubling tactic is
to barge into a person’s house early in the morning and then sit their day after day till a
person repays the debt in full.

It is thus important to be aware of your rights and remedy available:

1. Identity Card and Letter of Authority from the Bank are required to be shown before
the Collection Agent speaks with you
2. Identity verification of the Agent from police is required to be done by the Bank and
anyone with criminal background can’t be hired
3. The Collection Agent cannot disclose your loan details to any third person under
Right to Privacy. This includes any social media violations.
4. The Agent cannot use abusive language or humiliate you in any form

Given that agents have a habit of breaking these rules, it is important to record all these
conversations on a mobile so that a digital record is created. We would also like you to take
the following steps as required depending on the situation you are facing with these
recovery agents:

1. On your login into the customer portal, we have provided you access to a number of
letters which you can customize and share with the police, bank, banking
ombudsman, RBI etc. Please use these letters which have been drafted by legal
experts as they can help in putting the collection machinery on the back foot.
2. On harassment by collection agents please share with them with the letter which
confirms your participation in the loan settlement programme and its features.
3. Inform them that Loan settlement is in touch with senior officials of the Bank to
ensure that a settlement is achieved once there is sufficient availability of funds in
the account
 4. Loan settlement is also in touch with legal representatives and senior officials at
several courts, RBI etc. and it is important that collection agents remain within legal
bounds
5. We have empaneled lawyers, details of whose work and specialization has been
shared on our website. This group of lawyers can be used on a commercial basis by
you as per requirement and mutually agreed fee structure.

While debt settlement is a difficult process to go through mentally, at the same time it is
important that we handle it in a mature manner and get through it with the least mental
and financial damage.

Next Steps

In terms of next steps, we encourage you to take the following steps with us to ensure a
successful resolution in the coming months:

1. Our appointment by you needs to be shared with the bank in a format we will
share with you
2. Since you will not be making any payments going forward including MAD, it is
important to intimate the bank in writing that because of financial difficulties you
are not able to make any payments. This thus renders the bounce of Enach or PDCs
you have given to the Banks as not admissible in courts under section 138. We will
be sending you the templates accordingly.
3. The preferred location letter will be sent to you, which you need to share with the
bank. This will specify where you want to meet the recovery agent and will make
it difficult for the agent to come for physical visits to your home as it will
contravene legal requirements.
4. Through your customer login, we have provided you access to a cloud document
management software where all records of interactions between you and the
creditors would be stored. Interactions would include calls, meetings, written and
online correspondence. Please ensure that you utilise the same.
5. Ensure all your payments in the settlement account are on time and ensure that you
don’t give in to temptation to deposit less or skip a payment for running expenses
etc as this would result in additional costs and service charges. In addition, the third
party auditor could put adverse remarks which could impact settlement result with
bank
6. We will be working with the senior officials at the Bank to settle several pooled
loans together to give us better negotiating power

Settlement Process

Once enough money is accumulated in the would enter into negotiations with creditors on
behalf of the second party once sufficient funds are available in the loan settlement
account.
In case of multiple creditors, the negotiation would happen in ascending order of loan
amounts. Early negotiations with minimal funds would serve no purpose and will only
hamper the future negotiation process

We will then provide you recommendations regarding potential settlement options based
on the discussions and negotiations with the relevant creditors. You are free to accept or
reject our recommendation though our belief is that settlement over time serves everyone’s
best interest.

Given our strong reputation and discussions on your loans with senior personnel at banks,
once junior personnel and collection agents become aware that you are working with
Loansettlement, they will at times approach you directly within 1-3 months of our
agreement to settle. We would recommend that you take these offers seriously and inform
us of the same within 2 working days. We would be entitled to full fees in these
circumstances as this is the preferred outcome for you.

CIBIL Score

Given your inability to service the loan completely or failure to pay the minimal amount,
your CIBIL score is already going through a downward revision as you would expect. While
through the settlement process, the CIBIL score may dip as Banks factor in your inability to
fully service loans over 6-7 months, once settlement is completed, it will reflect positively in
your CIBIL score.

We will work with the Banks to ensure that your no dues certificate on settlement is shared
with CIBIL and it reflects in your score.

We also recommend that you continue saving an amount equivalent to your EMI, even after
settlement to ensure a bright future for your family.

Enach

Given the need for monthly payments and discipline required to go through the settlement
process we request you to provide us with an Enach for your monthly LS fees payments. This
will provide the following benefits:

1. Enable our Banking team to immediately commence the negotiation process with
the senior collection team at banks
2. Provide more credibility to banks that you are not a wilful defaulter and are looking
for a long term solution to a temporary financial difficulty
3. For customers with Enach we do away with certain extra charges for making notices,
Gst charges are waived on occasion etc. This is because it brings down our cost of
monthly follow up calls by senior lawyers etc.