Credit Card Holders Association says it will restrain companies from sacking employees who default on EMI payments
Credit Card Holders Association says it will restrain companies from sacking employees who default on EMI payments
Lawyer C V Giddappa, the general secretary of the Credit Card Holders Association, says his fight against companies that sack employees who have defaulted on their EMIs, has met with some success.
"We use a multi-pronged approach to deal with the problem," explained Giddappa.
The HR department of United India Insurance Company wrote a letter to a bank refusing to act against their employee who had defaulted on loan repayments.
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The company told the bank that they had nothing to do with the loan. "The United India Insurance Company took this stand after we spoke to the management on behalf of the employees," said Giddappa.
"We call HR departments to confirm if the employee is still working with them. There are occasions when we seek their help to convince the employee to repay.
But, we never seek the employee's sacking because once the person loses his job, he can't repay his dues. We would lose in such a situation," said R Nagaraj, manager, recovery, HDFC Bank.
