Auto loan-recovery racket busted in Thane. Here's why you need to be careful

Eight persons were recently arrested by cops in Maharashtra's Thane on charges of cheating automobile buyers who had defaulted on vehicle loan payments. As per a PTI report, the accused extorted money from loan defaulters by posing as recovery agents.

It is reported that the accused managed to gain access to a list of auto loan defaulters and then approach them with fake IDs, posing as recovery agents with fake documents to further add credence to the sinister charade. If a loan defaulter was unable to pay the amount demanded, the accused used to seize their vehicles.

The PTI report, quoting police officials, cite one instance when a person was asked to pay ₹25,000 and when he couldn't, his autorickshaw was seized.

In all, as many as 11 motorcycles, two autorickshaw, 10 mobile phones and a laptop was seized from the recovered from the accused. The total value of all of these are said to be around ₹4.80 lakh.

The entire incident once again shows the need to be vigilant with all loan and loan-repayment processes to avoid being cheated. While paying EMIs on time is a solid financial habit, in case of a rare default, it is advisable to visit a bank branch in person to either pay the amount with penalty or at least discuss a possible alternate solution. In case of recovery agents, many security experts suggest double-checking their credentials before revealing any personal or financial details.