BOMBAY, 3 September 2006 — Think twice before signing up the application form for a credit card, for a little negligence will prove dearly in the form of free threat with the credit card, as experienced by Anil Bagwe, chairman of Maharashtra Housing and Development Authority (MHADA) and a resident of Four Bungalows, in suburb Andheri (West) in Bombay.

In a complaint lodged with the Versova police station, Bagwe said that two months ago, a person visited his office and gave him a form to fill, stating that he would get a lifetime free State Bank of India, one of the biggest nationalized banks, credit card. The card was delivered to Bagwe in due time, along with a bank draft for 6,000 rupees with a covering letter stating that the draft was being sent as requested by him.

A stunned Bagwe contacted the SBI officials and informed them that neither he had used the credit card nor demanded any loan, so questioned as to how the SBI could send him a draft like that? The SBI officials could not give satisfactory explanation on this query by Bagwe, but he did get the answers from SBI’s recovery agents who threatened him with dire consequences.

The worst followed. After a few days, Bagwe said that he received a call from a recovery agent, who directed him to deposit the draft in a bank and pay the interest. Resorting to abusive and foul language, the agent threatened him, that his men would kidnap Bagwe, if he failed to abide by the agent’s instructions.

Panicked by the threats Bagwe contacted the Versova police. Senior Police Inspector Vijay Sonawane, called up the number from which the complainant had received the call and found it to be that of the SBI recovery wing office in Gurgaon in Haryana state. An official of the recovery unit told the police that he had no information about the matter and that the threat perception and other matters would be investigated. Sonawane said that since the police would be busy with the immersion of the Hindu Elephant deity Ganesh for three more days, they would probe the matter after the immersion function is over.

Till recently, it were the private financial companies, which were mostly involved in using muscle power and goons as a pressure tactics to recover outstanding dues from vehicle, personal loans and of use of credit cards. The goons would deploy methods of harassment, threats, terror and even kidnapping, thus forcing the person to pay. A senior police official said that the police were surprised that now even nationalized banks, which are federal government undertakings, are resorting to the use of the mafia for recovery purposes, as can be seen in the case of Bagwe, where SBI is involved.

Nowadays it is nothing new to see young boys and girls employed by various nationalized and private banks canvassing deep into shopping malls, petrol pumps, multiplexes, crowded railway and bus terminus, trying to lure people to go for a free lifetime credit cards.

Anant Kulkarni, a senior bank manager, with the Bank of Maharashtra, warned that applying for these free lifetime credit cards is like a “death trap”.

“Even though I am a bank manager, I had nearly fallen into their trap”, he said, when a credit card of a private bank was received by him, without his applying for it.

“Then, a demand for some amount followed. I went and spoke to the bank manager and said that, he neither applied nor asked for the credit card, hence he was not going to pay. The manager of the private bank apologized and said that it was sent by mistake.” Advises Kulkarni, that one has to read the fine print carefully in the form, particularly the terms and conditions.