The Kerala High Court has taken strong exception to the practice of banks and financial institutions engaging agents to recover loans through strong arm tactics.This is not only unlawful but also unethical. 'Not enforceable'
The practice is also opposed to public policy and against protection of public interest. Recovery of loans is enforced on the pretext that delivery of justice through court of law is a slow process. "I have no hesitation to hold that agency created by the bank for realisation of loan dues....is an agreement opposed to the public policy and hence not enforceable," the judge ruled.