SoftSettle Support
While exploring how the financial institutions treat their customer who are unable to repay their loans, a study has to be conducted analyzing the perspectives of both creditors and debtors. Despite the institutions or creditors are bent on prioritizing client protection as a statutory obligation, there is a surprising question on what happens when the contractual relationship breaks down between the creditor and the debtor.
It is true that there is more willingness to discuss default management which includes various high profile repayment crisis, generates a feeling that there should be a system where the creditors as well as the debtors shall steal the show together. The defaulter’s perspective may be completely different. Most serious difficulties are in financial distress and often in the midst of other life crisis. A sick child, parent needs medical treatment and in another case an elderly borrower was robbed on his way after finding the resource towards repaying his debts. Defaulting customers are already likely to be full of anxiety because their lives are not working as planned. The consequences of non-payment may be one among many major concerns of a defaulter. They skip meals, sell possessions, or compelled to take their children to a lower fees academy to save school fees. These sacrifices happen on the way to default. As a result they struggle to remain current on their debts, say by taking another loan, the chains may only get tighter. To reach a position justifying the debtors, there shall be a statement totally be submitted as “ordinary people in bad situations are not liars and cheats- at least not until pushed by crisis into desperate measures” . Such debtors need help and compassion.
Taking into account – the concerns of both Creditors and Debtors, a new system shall be evolved instead of harassing and pressurizing collection agencies to realize the loan amount from the defaulters. At the same time creditors shall also be benefitted in the course of collection and realization of loan amount.
SoftSettle Support can be a magnificent technology based alternative in sourcing the deliberations which would make everything easy for both creditors and debtors in settling their financial issues. Soft Settle can come up with three types of interventions such as early, middle and final interventions at each stage of the repayment period. As such the creditors need not wait for another 90 days after the completion of the payment to receive the defaulted payment and need not go for any legal proceedings against the debtor. The intervention in each stage would benefit the debtors by getting alerted about their CIBIL rating and they may not be complacent to repay the reshuffled EMI and properly comply with rescheduled repayment period. The final intervention too would help both creditor and debtor by settling the issues using the Mediation and Arbitration tools. At each intervention the e-resolution takes place and on the successful result, legally valid agreements would be generated and have to be executed properly so as to be subjected to enforceability.
Soft Settle is an ideal platform where disputing parties can interact virtually and thus reducing the problems related to creditors which used to bring violence and other offensive techniques from the part of the collection agencies against the defaulters at the behest of the creditors. While the creditors start taking lenient attitude towards the debtors, there shall be some options can be worked out during the negotiating process that could bring results which is more or less win-win propositions